SPAIN Trends and Developments Contributed by: Jacobo Martínez, Juan Alonso and Luis Aguilar Romera, Eversheds Sutherland Spain
Prior hearing now required before disciplinary dismissal In a landmark decision issued in November 2024, the Spanish Supreme Court established a manda - tory procedural safeguard in disciplinary dismiss - als: employers must grant employees a prior hearing before formal notification of termination. This entails informing the employee of the specific factual allega - tions and providing then with a meaningful opportunity to respond or offer clarifications. The hearing does not need to follow a formal structure or involve legal representation. However, it must be genuine, timely and adequately documented. Courts will assess whether the employee was afforded a real chance to be heard and whether the employer duly considered their response before reaching a final deci - sion. Failure to comply with this requirement renders the dismissal automatically unfair, regardless of the seri - ousness of the underlying misconduct. This judicial stance aligns Spanish labour law with international standards, notably Article 7 of ILO Convention No 158, ratified by Spain. Companies should promptly review and revise their internal disciplinary procedures to integrate this hear - ing requirement. Standard templates for dismissal notices and internal HR protocols must be updated to ensure legal compliance. No additional compensation beyond statutory unfair dismissal awards In December 2024, the Spanish Supreme Court issued a final judgment definitively rejecting the possibility of awarding additional compensation in unfair dismissal cases that exceeds the statutory formula established in the Workers’ Statute ( Estatuto de los Trabajadores ). The Court held that, unless the dismissal violates a fundamental right or constitutes unlawful discrimina - tion, the capped statutory indemnity is both sufficient and exhaustive. This ruling ends a period of judicial uncertainty dur - ing which some lower courts had allowed claims for supplementary damages based on alleged insufficient reparation. These claims often invoked the European
accommodation are thoroughly explored before con - templating termination. LGTBI equality plans are now mandatory and regulated in detail Companies with 50 or more employees are now legal - ly required to adopt an “LGTBI equality plan”, pursu - ant to Royal Decree 1026/2024, which implements the 2023 Law on Equal Treatment and Non-Discrimination of LGTBI Persons. This regulatory development marks a significant advancement; embedding diversity and inclusion within the broader framework of employers’ compliance obligations. The plan must be negotiated with employee repre - sentatives through a participatory process. It must be adapted to the specific characteristics of the organi - sation and contain concrete, actionable measures. At a minimum, it must include protocols for the preven - tion and management of harassment or violence on the grounds of sexual orientation or gender identity. It should also incorporate inclusive recruitment and promotion practices, awareness-raising actions, and the designation of a person responsible for implemen - tation and oversight. Non-compliance may trigger substantial administra - tive sanctions, including fines of up to EUR225,000. Additionally, companies that fail to comply may be barred from participating in public procurement pro - cesses and from accessing certain types of public funding. The Labour Inspectorate has already begun requesting evidence of implementation during inspec - tions. Although the content of each plan will necessarily vary depending on the company’s size and sector, it cannot be reduced to a symbolic gesture. It must be integrated into internal policies, reflected in onboard - ing and training procedures, and aligned with exist - ing equality and diversity strategies. The obligation to negotiate and document the plan closely mirrors the existing framework for gender equality plans, and companies would be well advised to apply a similarly rigorous approach.
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