In its judgment of 16 July 2025, the Spanish Supreme Court established legal precedent by ruling that the statutory compensation for unfair dismissal may not be increased by granting additional compensation based on the specific circumstances of each case. This decision departs from the recommendation made by the European Committee of Social Rights, which had supported such a possibility following claims brought before it by Spain’s main trade unions, under ILO Convention No. 158 and the European Social Charter.

The Supreme Court held that the decisions of the European Committee of Social Rights are not necessarily binding, even though they form part of the Spanish legal system. It noted that certain international provisions merely impose obligations on signatory States to take the necessary measures for their implementation and adaptation into domestic law. The Court further stated that Spanish legislation already complies with the requirements of the European Social Charter by setting compensation according to the worker’s salary and years of service.

The judgment includes dissenting opinions from several Justices, who argue that, since the European Social Charter forms part of Spanish law, additional compensation should be permitted in cases where the statutory amount does not fully cover the actual damage suffered by the worker as a result of the employer’s unlawful conduct.