Court Awards Compensation for Years of Temporary Work Even After Securing Permanent Position. The Supreme Court of Asturias has ordered a payment of €35,172 to an employee who, after many years of temporary employment, received a permanent contract. The ruling emphasizes that stabilization does not negate the right to compensation for past violations.
The Supreme Court of Asturias has put an end to a case that could change the approach to compensation for the misuse of temporary employment contracts in the public sector. An employee of Establecimientos Residenciales para Ancianos de Asturias, who had worked as a physiotherapist under a temporary contract since 2005, gained the right to a payout of €35,172 — despite having secured a permanent position after the stabilization procedure.
The essence of the dispute was that many years of temporary employment, which the court recognized as 'abuse,' were not compensated even after the employee passed a competitive exam under Law 20/2021 and signed a permanent contract. To take up the new position, she had to formally terminate her previous employment, which served as the basis for a claim for compensation for years worked as a temporary employee.
Court ruling
Initially, the trial court in Mieres rejected the claim, but an appeal to the Supreme Court of Asturias changed the situation. The panel of judges recognized that obtaining a permanent position does not offset the harm caused by prolonged use of temporary contracts. Although the court did not agree with the maximum compensation amount (€69,953.20 at the rate of 33 days per year), it approved a payout according to an alternative formula — 20 days for each year of service, but no more than 12 months’ salary.
The court's key argument: the mere fact of moving to a permanent position does not eliminate the consequences of years of instability. The ruling notes that the damage occurred during the period when the employee was effectively covering the institution’s permanent needs, but had no job security. The court also rejected claims that ending the temporary contract could be considered voluntary resignation: the termination document was required to transfer to the new position and was not initiated by the employee herself.
Consequences for the sector
This decision may serve as a benchmark for other public sector workers who, after many years of temporary employment, were granted permanent positions through stabilization procedures. As the CSIF union notes, this practice paves the way for compensation for those who can prove abuse of temporary contracts—especially if their status was previously recognized as 'indefinido no fijo' or if a court has established an employment relationship circumventing the law.
The union emphasizes: the right to compensation arises precisely at the moment the temporary employment contract ends, even if a permanent position is formalized immediately afterward. No prior complaint is required to file a lawsuit, and the general period for making a claim is one year from the dismissal, although it is recommended to act without delay.
Stabilization and compensation
Judicial practice in such cases is gradually taking shape, and the decision of the Supreme Court of Asturias may influence similar proceedings in other regions. Importantly, the court distinguishes these concepts: obtaining permanent employment resolves future job security but does not negate the right to compensation for past violations. This is especially relevant against the backdrop of mass stabilization processes in the public sector, as thousands of employees transition from temporary to permanent status.
The issue of compensation for the misuse of fixed-term contracts is becoming increasingly significant in Spain's labor market. In practice, even after obtaining a permanent position, workers can seek compensation for years of instability. Similar disputes have already been reviewed at the highest level: for example, in the case of payment for improperly compensated overtime, when the Supreme Court of Spain ordered an employer to pay damages to an employee from Santander — you can read more about this in the article on the record compensation for overtime.
The decision of the Supreme Court of Asturias emphasizes: even if a worker gains long-awaited stability, their right to compensation for past violations remains. This is a signal to all those who have faced years of temporary employment in the public sector.
