Justice

Navarra Court Overturns €118,786 Compensation for Director After 16-Year Absence

Navarra Court Overturns €118,786 Compensation for Director After 16-Year Absence RUSSPAIN.com © russpain.com
Navarra Court Overturns €118,786 Compensation for Director After 16-Year Absence © russpain.com
A Navarra court has overturned six-figure compensation awarded to a director who returned to work after nearly 16 years of leave. It upheld only a minor salary adjustment, finding that the company’s mistakes were temporary and did not justify terminating her contract.

When a director and mother of six returned to her job in Navarra in January 2025 after almost 16 years of parental leave, she faced immediate obstacles. She had no computer or phone and couldn’t access management systems; her job title had also been downgraded. The region’s highest court has now ruled that these issues, while serious, did not justify the €118,786 compensation initially awarded to her.

The Tribunal Superior de Justicia de Navarra (TSJ) annulled the lower court’s decision to award the director compensation equivalent to that for unfair dismissal, as well as €8,000 for moral damages. The only amount the TSJ upheld was €5,154.35, covering salary differences caused by errors in her pay and job category when she returned. The ruling was reported on August 13, 2026, but did not specify the exact date or case number.

Return Marked by Administrative Errors

The director’s employment dated back to 2000, but she was on extended leave to care for her children from August 2009 to January 2025. 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 option to start a new period for each additional child.

When she returned on January 13, 2025, she was not immediately given 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 the issues were resolved within the first few weeks.

Initial Court Ruling: Major Compensation

On February 19, 2025, the company informed her that she would be transferred 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 termination of her contract under Article 50.1.c of the Workers’ Statute and alleging gender discrimination.

Social Court No. 3 of Pamplona partially upheld her claim, terminating her contract and awarding €118,786 in compensation. She also received €8,000 for moral damages and €5,154.35 for salary differences, bringing the total to 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 amount to the serious breach required for contract termination. The court noted that the director still had duties: she participated in co-management and budgeting tasks. It also considered the correction of her job title and the company’s organizational reasons for transferring her.

On 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 gender discrimination claim, finding no evidence that her difficulties were linked to her extended parental leave. It annulled the 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 their employer commits a serious breach of its obligations. If granted, the payout matches that for unfair dismissal, typically 33 days’ salary per year of service, up to 24 months. Special rules apply to 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 illustrates the legal threshold for contract termination in Spain: administrative errors or delays, even after a long absence, do not necessarily justify a major payout. The TSJ’s decision shows that only persistent or severe breaches by an employer can trigger such compensation, while temporary or corrected mistakes may result only in salary adjustments.

Lara Carter RUSSPAIN.com
Journalist

Lara Carter

Lara Carter is a journalist at RUSSPAIN.COM covering Spanish current affairs, culture, tourism, transport, economy and society.