The Spanish Government has recently announced the prohibition of objective dismissal in Spain between April 1 and at least June 30. The Government has approved this Tuesday in the Council of Ministers one of its measures to prevent companies from dismissing workers as a consequence of the war in Ukraine, in line with what was applied during the pandemic and which was in force until last February 28th.
This measure, announced by the second vice-president, Yolanda Díaz, Minister of Labor, includes a great novelty, since it includes for the first time in Spain the prohibition to dismiss workers for objective causes arguing the increase in energy prices, which has repercussions on the costs of maintaining the activity of the company. “They may be tempted, but it is an unjustified cause,” Diaz has defended. Employers who dismiss a worker in this situation will have to return all the aid they have received.
This is, in short, a tightening of the conditions for terminating a contract and will mean that the cost of firing a worker will rise de facto. Because the compensation for objective dismissal is set at 20 days per year worked, while the cost for unfair dismissal, which will be the only one that companies can use in the next three months, rises to 33 days.
This measure to protect workers, which the CEOE rejected as going “against the freedom of enterprise”, is in addition to the ’employment maintenance clause’ which, as was the case throughout the pandemic, is in force for companies that take advantage of a Temporary Layoff Plan (Expediente de Regulación Temporal de Empleo, ERTE). This means that those companies that choose to apply one of the new mechanisms included in the labor reform will have to maintain the employment of their entire workforce for six months or, otherwise, they will have to return all the aid provided by the State in the form of exemption from social security contributions. And not only that of the dismissed workers, but that of all the company’s employees.
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