Supreme Court Ruling Could Lead to Higher Compensation for Workers in Disciplinary Dismissals
A recent ruling by the Spanish Supreme Court (TS) has made a significant change to employment law, potentially leading to higher compensation for workers who face unfair disciplinary dismissals. On 18 November, the Court decided that companies must now give workers a chance to defend themselves in a hearing before firing them for serious misconduct or infractions. This change marks a major shift, as it replaces a 40-year-old practice and adds a new layer of protection for employees.
Although the Spanish Workers’ Statute does not currently require this kind of hearing, the Court based its decision on international law, specifically a convention from the International Labour Organization (ILO), which Spain has been following since 1986. The Supreme Court ruled that international laws take precedence over national rules in this case, meaning that businesses now have to follow this new procedure when considering a disciplinary dismissal.
What Happens If Employers Don’t Follow the New Rule?
While the Supreme Court has made it clear that employers must offer a hearing before dismissing a worker for serious misconduct, it has not specified what will happen if they fail to do so. According to labour lawyers, it is likely that any dismissal without a prior hearing will be considered unfair, and the worker could be entitled to compensation.
Therefore, in the opinion of some lawyers, employees need to be cautious during this hearing, as anything they say could play a significant role if the case ends up in court. Moreover, if the dismissal is ruled unfair because the employer did not follow the proper procedure, it could result in additional compensation for the worker.
What Exactly Is a “Prior Hearing”?
One question raised by the ruling is what exactly a “prior hearing” should look like. The Supreme Court did not provide detailed guidance on how companies should carry out this new process, leaving some uncertainty for employers.
Labour lawyers believe that, while the Court did not specifically clarify what happens if the hearing is skipped, it is reasonable to expect that the dismissal will be considered void (despido nulo). They added that, in some previous cases, the absence of a hearing did not automatically render the dismissal unfair, so this point remains unclear.
However, if the dismissal is later found to be void because the worker could have raised certain points during the hearing, the worker might be entitled to compensation for lost wages.
Could the Law Change?
Following the Supreme Court’s ruling, many experts believe that the Spanish Workers’ Statute may need to be updated to reflect the new requirement for a prior hearing in cases of disciplinary dismissal. As it stands, the statute does not mention this step, leading to some confusion about how it will be enforced.
This recent ruling represents a big shift in Spanish labour law, and it could lead to important changes in how companies handle dismissals in the future. Workers now have more protection, but there are still some questions to be answered about how these changes will work in practice.
