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Temporary workers entitled to same severance pay rights as permanent workers, EU Court rules

23 Sep 18:00 by Capital GES

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Bloomberg today reported that the EU Court of Justice of the European Union said that Spain must grant temporary workers the same rights to severance pay as permanent workers.

The reports said the ruling, dated 14 September, overturns Spanish labour law reforms that denied temporary workers the same benefits and redundancy pay as permanent workers.Under the current Spanish labour legislation, permanent contract workers are entitled to compensation equivalent to 20 days per year worked if they are dismissed. Temporary staff are given compensation of 12 days while substitute temporary workers are not entitled to compensation at all regardless of the amount of time worked or duties carried out.

The Labour Ministry said in a statement that it would study the ruling and denied it would represent a ban on temporary contracts, which account for a quarter of all jobs, the second-highest rate in the European Union after Poland.

Remember to contact the Capital GES team if you have any questions about how employment legislation changes such as this one can impact you.