Spain: courts are bracing themselves for a deluge of cases in the aftermath of the CJEU ruling that matches compensation for both temporary and permanent employment contract termination

Ever since the CJEU ruling (c.f. article No. 9818), that a Madrid court applied to the letter (c.f. article No. 9856) and then that a court in the Basque region applied to cover all temporary employment contracts, confusion has been the name of the day. The CJEU ruling recognizes the same workers’ rights in terms of compensation for contract termination for those on temporary employment contracts as for those on permanent employee contracts. Employers and unions have different views on how national legislation should be adapted in line with the ruling and have given themselves a month to find a solution that legally safeguards companies.
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On 18 October, by making the court’s ruling public that aligns temporary employment contract termination compensation with that of permanent employment contracts, the president of the Basque region’s Social Chamber of the High Court was effectively inviting temporary employees to bring their cases to court and claim compensation based on twenty days pay for each year of service. Basque employers were immediately up in arms and criticized the impact on jobs. Following the CJEU’s 14 September...

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