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The Supreme Court settles the debate on compensation for unfair dismissal

23 Jul 2025 Afianza Share
The Supreme Court settles the debate on compensation for unfair dismissal

The Supreme Court, with recent judgements (November 2024 and July 2025), has closed the door definitively for judges to be able to increase compensation for wrongful dismissal beyond what is prescribed by law (33 days per year, maximum 24 monthly payments).

This ruling, analyzed by Víctor María González Muñoz, director of the Labor Area of Afianza Asesores in the newspaper Five Daysconsolidates case law and grants more legal certainty The Supreme Court holds that the current compensation is fully satisfactory and that the ILO guidelines or the European Social Charter are not directly binding on national judicial bodies.

The legislator, key to severance pay

Although the Constitutional Court has already endorsed this system, the decision of the Supreme Court eliminates the disparity between different courts. European Committee on Social Rights continues to warn that current limits may be insufficient, especially for temporary contracts or reduced antiquities.

With the judicial process closed, the responsibility for reviewing the adequacy of compensation now rests with the Spanish legislator. At Afianza Asesores, we offer expert and up-to-date legal advice to guide you in any situation of dismissal, guaranteeing the protection of your rights and interests.

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