One of the key measures of the recent labor reform (c.f. article No. 10330) was the compensation scale that sets ceiling and floor limits, which the labor tribunal can require employers to pay to employees in compensation for unjustified employment termination. However this measure has been highlighted on several occasions when the first instance courts set it aside and invoked in particular article 10 of the ILO Convention 158 on Termination of Employment, as well as article 24 of the European Social Charter that sets the principle of ‘adequate’ compensation to remedy failure to respect employers’ obligations as part of employment terminations. In an appeal to ensure ‘uniform interpretation’ on 17 July the Court of Cassation handed down two opinions that state this compensation scale is compatible with the ILO convention.
The opinions are especially interesting in terms of analyzing compliance with article 10 of the ILO convention No. 158 on Employment Termination, and which strengthens the validity of the compensation scale provision.
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