The obligation to give a prior hearing in disciplinary dismissal and compensation for unfair dismissal

  • Julia Fargas Esteve

    Julia Fargas is COO of Blegal Barcelona, where she has spent almost 9 years leading the firm's operations and digital transformation. An ESADE MBA, she has a long track record in business management, process optimization and business strategy.

Julia Fargas Esteve

Julia Fargas is COO of Blegal Barcelona, where she has spent almost 9 years leading the firm's operations and digital transformation. An ESADE MBA, she has a long track record in business management, process optimization and business strategy.

La obligación de dar audiencia previa en despidos disciplinarios y la indemnización por despido Improcedente

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Nuevas sentencias clarifican la audiencia previa en despido disciplinario y la indemnización por despido improcedente

Recently, the Supreme Court has issued two key rulings clarifying fundamental aspects of the prior hearing in disciplinary dismissals, disciplinary dismissals themselves and compensation for unfair dismissal. These decisions strengthen workers’ rights and provide greater legal certainty for businesses. Here we explain what they entail.

The right to a prior hearing in disciplinary dismissals

In its ruling STS 1250/2024 of 18 November, the Supreme Court establishes that, before dismissing a worker for disciplinary reasons, the employer must offer them the opportunity to defend themselves. This right is enshrined in Article 7 of ILO Convention No. 158, which Spain has applied since 1986.

Although it was not previously mandatory in Spain, the Court considers that this requirement does not need further legislation to be enforceable. However, it notes that exceptions could apply if circumstances justify them.

Why is this decision important?

  • It changes previous case law: Previously, a prior hearing was not required in disciplinary dismissals, but it is now obligatory due to the direct application of the international standards ratified by Spain.
  • It guarantees the right of defence: This procedure does not replace judicial challenge or conciliation, but adds a necessary step before dismissing someone for disciplinary reasons.

Compensation for unfair dismissal cannot be increased

In ruling STS 1350/2024 of 19 December, the Supreme Court confirmed that compensation for unfair dismissal must comply with the provisions of the Workers’ Statute: 33 days’ pay per year of service, up to a maximum of 24 months’ salary.

The Court rejected the idea that judges could increase this compensation in specific cases, even by invoking international standards such as ILO Convention 158. According to the ruling, Spanish law already meets the requirements of that Convention, which allows each country to set its own rules on compensation.

What does this ruling mean?

  • Legal certainty: It maintains a fixed compensation amount, avoiding variations depending on the case.
  • Restorative nature: The compensation aims to compensate the worker, but does not have a punitive objective for the employer nor to restore the employment relationship.

Key aspects of international standards

  1. ILO Convention No. 158: This Convention seeks to protect against unjustified dismissals, but allows flexibility for each country to implement its own rules.
  2. International treaties in Spain: Ratified treaties, such as ILO Convention No. 158, form part of Spanish law, but are not always directly applicable; some require additional legal implementation.
  3. Control of conventionality: Judges may give preference to international standards over domestic laws, provided they do not nullify them.

Finally, the Court also leaves open the possibility for collective agreements or new legislation to address aspects not covered by current regulations, demonstrating that there is always room to advance labour protection and regulation.

Decisions of this nature serve as a reminder that labour laws are not static and must adapt to the times, balancing individuals’ rights with business needs.

Count on us as your legal partner to manage human capital. Our personalised, specialised advice is the solution you are seeking.

At Blegal, we help you prevent and resolve any labour situation, however complex it may be. Thanks to our team of experts, we offer everything from routine basic advice, such as preparing monthly payrolls, to defining complex socio-labour policies or equality plans. We make our team of lawyers, tax experts and accountants available to guide and advise you on any operation your company or business may require.

Photo by Marten Bjork on Unsplash

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