A Navarra court has revoked a six-figure compensation awarded to a director who returned to work after nearly 16 years of leave. Only a minor salary adjustment was upheld, as the court found the company’s mistakes were temporary and not grounds for contract termination.
When a director and mother of six returned to her job in Navarra in January 2025 after almost 16 years of parental leave and company changes, she faced immediate obstacles: no computer, no phone, no access to management systems, and a downgraded job title. Despite these setbacks, the region’s highest court has now ruled that these issues, while serious, were not enough to justify the €118,786 compensation she was initially awarded.
The Tribunal Superior de Justicia de Navarra (TSJ) has annulled the previous court’s decision to grant the director a payout equivalent to an unfair dismissal, as well as €8,000 for moral damages. The only sum the TSJ upheld was €5,154.35, covering salary differences due to errors in her pay and job category during her return. The ruling, reported on August 13, 2026, did not specify the exact date or case number.
Return Marked by Administrative Errors
The director’s employment dated back to 2000, but from August 2009 to January 2025, she was on extended leave to care for her children. During this period, her contract was transferred to a new company in December 2022. Spanish law allows up to three years of parental leave per child, with the possibility to start new periods for each additional child.
Upon her return on January 13, 2025, she was not immediately provided with the necessary tools or access. That same day, she was offered a contract as “assistant director” with incorrect seniority. The company blamed a technical error and corrected her job title by the end of January. Salary discrepancies, mainly related to seniority and qualification bonuses, amounted to just over €5,000. Most of these issues were resolved within the first few weeks.
Initial Court Ruling: Major Compensation
On February 19, 2025, the company informed her of a transfer to another center, citing financial losses and low occupancy. The previous director had been dismissed so she could take over. In April, the employee went on medical leave and filed a lawsuit, seeking contract termination under Article 50.1.c of the Workers’ Statute and claiming gender discrimination.
The Social Court No. 3 of Pamplona partially upheld her claim, terminating her contract and awarding €118,786 in compensation, plus €8,000 for moral damages and €5,154.35 for salary differences—a total of nearly €132,000. The company appealed to the TSJ.
TSJ: Problems Were Temporary, Not Grounds for Termination
The TSJ sided with the company, finding that the lack of access and resources lasted only two to three weeks and, while “reproachable,” did not reach the level of a serious breach required for contract termination. The court noted that the director was not left without duties, as she participated in co-management and budgeting tasks. The correction of her job title and the company’s organizational reasons for her transfer were also taken into account.
Regarding pay, the court distinguished the one-off salary shortfall from a sustained failure to pay, which could have justified termination. The TSJ also rejected the claim of gender discrimination, finding no evidence that her difficulties were linked to her extended parental leave. As a result, the court annulled the large compensation and moral damages, leaving only the salary adjustment.
Legal Context and Implications
Under Article 50 of the Workers’ Statute, employees can seek judicial termination of their contract if the employer commits a serious breach of obligations. If granted, the payout matches that of unfair dismissal—typically 33 days’ salary per year of service, up to 24 months, with special rules for contracts predating 2012. The law also protects seniority and job reservation during parental leave, but only the first year guarantees the same position; after that, a similar role is reserved.
This case highlights the legal threshold for contract termination in Spain: not every administrative error or delay, even after a long absence, will justify a major payout. The TSJ’s decision underscores that only persistent or severe breaches by the employer can trigger such compensation, while temporary or corrected mistakes may result only in minor adjustments.
