The Supreme Court closes the door on "extra" compensation in cases of unfair dismissal
The Plenary Session of the Social Division of the Supreme Court of 16 July 2025 dismissed the appeal of a worker who requested, in addition to the compensation provided for in Article 56.1 of the Workers' Statute, additional compensation for loss of earnings. He claimed that the legal amount was insufficient and cited Article 10 of ILO Convention 158 and Article 24 of the European Social Charter, which recognise the right to "adequate compensation".
The Supreme Court upheld the ruling of the Catalan Supreme Court and clarified that both Convention 158 and the European Social Charter are "programmatic mandates", i.e. they do not fix an amount and do not allow judges to exceed the amount set by domestic law. The Chamber recalls that the CSE even expressly refers to the laws and collective bargaining to specify the reparation in the event of dismissal, so that only the legislator can modify the system.
It also stresses that the decisions of the European Committee of Social Rights and the recommendations of the Committee of Ministers of the Council of Europe have no binding effect on the courts, unlike the judgments of the ECtHR or the CJEU.
With this ruling, the Supreme Court confirms that compensation for unfair dismissal is limited to that provided for in the ET, except for different damages that can be claimed through civil proceedings or a future legislative reform.
Related professionals
LATEST FROM #ECIJA
Two out of three days fall at the weekend
Violence and harassment at work are certainly not restricted to one particular geography or company.
On 16 July 2026, a new Agreement (ACDO.AS2.HCT.290626/176.P.DIR) issued by the Technical Council of the Mexican Social Security Institute (IMSS) was published in the Official Gazette of the Federation (DOF).
On 9 June 2026, the Agreement setting out measures to streamline procedures carried out with the Ministry of Labour and Social Welfare (“STPS”) was published in the Official Gazette of the Federation.
The firm is making a pioneering step in the legal sector with a comprehensive mobility planning tool, in line with its corporate purpose, its environmental commitment, and the new regulatory requirements regarding sustainability
The initiative expands ECIJA's coverage in Navarra and incorporates a team of experts in taxation, labor law, commercial law, financial consulting, and international affairs.
Bill. File No. 25.049. Act on paternity leave in Costa Rica.
The Second Chamber examined the legal nature of corporate incentives linked to shares, specifically ‘Restricted Stock Units’ (RSU) schemes, and whether they could be included in an employee’s salary.
In January 2026, the Second Chamber of the Supreme Court of Justice issued a key ruling on how to distinguish an employment relationship from the provision of professional services.
