Some may see this as a radical change in opinion while others may view it as the CJEU bringing greater clarity in response to requests by Spain’s courts that are little inclined to apply its 2016 ruling, which would require matching employment contract termination compensation amounts for workers on permanent and temporary employment contracts. Two rulings handed down on 05 June, both for Spanish cases, saw the CJEU update its earlier jurisprudence so that now a distinction is being made between workers on fixed term employment contracts and who have been prepared for their employment terminations and those for whom it is a surprise and as such can explain different compensation levels.
At issue are relief (fixed-term) employment contracts that allow workers to be hired on a temporary basis to make up for reduced working time by employees who are gradually moving towards retirement and interinidad (temporary replacement) contracts that fills in for employee absences or the short periods before an employee is being hired. In terms of relief contracts, Spanish law intends for 12 days compensation per career year in contrast with 20 days for permanent employment contracts.
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