The European Committee of Social Rights (ECSR) has ruled that Spain's current regulations on severance pay for unfair dismissals violate the European Social Charter.

This decision, prompted by a complaint from the UGT union, highlights that the existing compensation system, which offers 33 days of salary per year worked with a maximum of 24 months, is insufficient and does not deter employers from dismissing workers.

The ECSR's ruling opens the door for potential reforms that could eliminate the cap on severance pay and introduce a minimum of six months' compensation, taking into account individual circumstances such as financial vulnerability and family responsibilities.

The Spanish government, particularly the Ministry of Labor, is considering these changes, but there is internal disagreement within the coalition government.

UGT has emphasized the need for a more equitable system that reflects the personal situations of workers, urging the government to act swiftly to align with European standards.