Spain’s Constitutional Court will review whether the fixed 33 days per year severance for unfair dismissal truly compensates workers. The outcome could reshape how companies handle layoffs and redefine employee rights in the Spanish labor market.
Spain’s Constitutional Court is set to review whether the country’s standard compensation for unfair dismissal—33 days’ salary per year worked—actually provides fair redress for workers let go without cause. The court’s decision to take up the issue, announced in early September 2026, puts a spotlight on a rule that has defined Spanish employment since the 2012 labor reform, when compensation was cut from the previous 45 days per year.
The core question is straightforward: does a formula based only on salary and years of service make up for the loss of a job that was terminated unfairly? For most workers dismissed after February 2012, the law caps compensation at 24 months’ pay, calculated at 33 days per year. Those with earlier service may get a higher rate for those years, but the approach remains fixed and predictable. Government figures put the average cost of an unfair dismissal for employers at about 8,000 euros.
For objective dismissals, the compensation is even lower—20 days per year worked, with a maximum of 12 months’ salary.
Some argue that this predictability comes at a price. Legal challenges say the current system overlooks the specific hardships some employees face—lost career prospects, personal situations, or damages that go beyond a simple calculation. Spanish courts have so far refused to raise compensation based on international conventions alone, holding that the law’s certainty is more important than wider judicial discretion. According to El Español, the Constitutional Court is not questioning whether compensation should exist, but whether the fixed formula falls short in cases where actual damages are higher.
While the court reviews the issue, the rules stay the same. Companies can still choose to reinstate a worker or pay the set compensation, and dismissed employees have just 20 working days to challenge a dismissal or claim their rights. The process is strict, and the court’s review does not pause deadlines or grant extra payments. Legal experts note that the current legal framework and short appeal windows remain in force during the proceedings.
Extra compensation is only possible in rare cases involving a violation of fundamental rights—such as discrimination, retaliation, or union-busting. In those situations, courts may order reinstatement, back pay, or damages for moral or material harm. But for most unfair dismissals, the fixed formula applies, and workers must gather evidence, keep records, and follow strict procedures if they want to contest their employer’s decision.
The current 33-day rule is a direct result of the 2012 labor reform, which lowered severance payouts compared to the previous system. If the Constitutional Court or lawmakers find the formula inadequate, Spain could move toward a more flexible model that considers individual circumstances and actual damages.
For anyone facing dismissal, the advice is clear: don’t wait for the Constitutional Court’s decision. The legal deadlines still apply, and any chance of a higher payout depends on the details of each case and what the court eventually decides. Even if the rules change, only some cases may benefit, and closed cases will not be reopened automatically.
This legal uncertainty echoes other recent changes in Spanish labor protections, such as the new protocol for hospitality staff during red alerts, as reported earlier. Both developments show how Spain’s labor market is being pushed to reconsider long-standing rules in light of new social and economic pressures.
The Constitutional Court’s decision will do more than set compensation formulas. It will show whether Spain is ready to adapt its labor laws to better reflect the real costs of losing a job. If the court finds the current system lacking, it could open the way for more individualized justice for workers. If not, predictability and legal certainty will continue to take priority, leaving many employees with only a fixed payout and the sense that the law has not kept up with today’s workplace realities.
