The UGT union is increasing pressure on the Spanish government to address the issue of severance pay for unfair dismissals. On Thursday, it submitted a document to the Council of Europe, accessed by EL PAÍS, urging "effective enforcement measures by the Spanish state" following a key decision made by the European Committee of Social Rights (CEDS).

The CEDS, a body under the Council of Europe, highlighted last year that Spain's regulations on severance pay for unjust terminations do not comply with the European Social Charter.

According to UGT, led by Pepe Álvarez, "the Spanish state, through all its public authorities, especially the legislative, as well as the executive and judiciary, is obliged to effectively and promptly fulfill the obligations set out in the European Social Charter."

UGT's request for effective enforcement refers to the CEDS's decision from March 20, 2024, and its recommendation from November 27 of the same year, demanding compliance. UGT points out that the government approved the annual regulatory plan (PAN) for 2025 in April, including a legal reform to "protect workers against dismissal, complying with the European Social Charter, and reinforcing causality in cases of termination of employment." However, it also reminds that this change was already part of the 2024 regulatory plan, a response it considers "weak."

"The PAN 2025 forecast is very vague and does not specify that among the guarantees to comply with the Charter, there is a reform of severance pay, nor the recovery of processing wages, much less the possibility of agreeing to the reinstatement of the victim of unfair dismissal," protests UGT. The union also notes that neither the Spanish government nor the legislative power has announced "specific measures to adapt the unfair dismissal process to what was resolved" by the CEDS.

Faced with this situation, the document urges the Council of Europe "to require the Spanish state for effective compliance with Article 24 of the European Social Charter [which recognizes the right of workers dismissed without valid reason to adequate compensation or other appropriate remedy], through proper and immediate execution of its obligations."

To make this a reality, UGT calls for the inclusion of processing wages in compensation for unjustified or unfair dismissal, among other measures. This refers to the reimbursement of economic losses suffered by the worker between the dismissal date and the appeal body's decision. Additionally, UGT demands the possibility of reinstating the worker and compensation "of sufficiently high amount to deter the employer and repair the damage suffered by the victim."

The Spanish dismissal system, calculated in days, sets a maximum of 33 days' salary per year worked, with a cap of 24 months, resulting in generous compensation for long-term employment but minimal indemnity for shorter periods.

This demand by UGT is reinforced by another CEDS resolution, in response to a claim by CC OO, where the European body also rules against the Spanish regulation for unfair dismissal, although it has not yet been published. The Ministry of Labor said after the first resolution that it would convene social agents to address a reform, but it has yet to do so. Months later, it says it is waiting for the CC OO response to be published to take both resolutions into account.

Given the current balance of power in Congress, it's hard to imagine a reform of this nature succeeding. Right-wing parties are clearly against changing severance pay. Various sources in social dialogue indicate that this change is even less likely to succeed than the reduction of working hours.

There isn't even consensus within the government, with the Economy against opening this debate, in line with the employer's stance, despite the Council of Europe's pronouncements. The Supreme Court reinforced this position in December last year, blocking additional compensations some courts were granting. However, it acknowledged that it didn't consider the ratification of the European Social Charter in 2021, so a new pronouncement is expected to establish doctrine.