Can a judge increase the compensation for unfair dismissal? The Supreme Court says yes | GM INTEGRA HR

For years, compensation for unfair dismissal in Spain has followed strict, predefined legal guidelines. However, a recent ruling by the Spanish Supreme Court introduces a key nuance that could reshape how these cases are understood:
Yes, a judge can increase the legally established compensation for unfair dismissal—if additional damages are proven.

What does this mean for companies and HR departments?
And how does it impact workers’ rights?

The ruling that changes everything

In its May 22, 2024 decision (No. 492/2024), the Supreme Court resolved a long-debated question in the legal and labor fields:

Can a judge increase the statutory compensation in cases of unfair dismissal?

The answer is yes as long as the employee proves moral damages, additional harm, or a significant violation of fundamental rights, the judge can establish a higher compensation than that outlined in the Spanish Workers’ Statute.

What could justify higher compensation?

The Supreme Court is not opening the door to automatic increases, but rather to exceptional cases where aggravating factors are present. For example:

• Harassment or discrimination prior to dismissal

• Repeated violations of fundamental rights

• Clearly abusive dismissals or those made in retaliation

• Situations where statutory compensation fails to fulfill its reparative or deterrent role

This ruling aligns with the ILO Convention 158 and the European Social Charter, which require that sanctions for unjustified dismissal be effective, appropriate, and dissuasive.

What should companies consider?

This decision calls on organizations to thoroughly review:

• Dismissal practices and legal grounds

• Respect for fundamental rights throughout the employment relationship

• Proper documentation and communication of HR decisions

• The importance of having clear and preventive action protocols

In this new scenario, expert outsourcing of labor management becomes even more relevant—since formal mistakes or poorly handled dismissals can lead to serious financial and reputational consequences.

How can your company be prepared?

At GM Integra RRHH, we support companies to:

✔️ Stay compliant with current regulations and international labor standards
✔️ Manage dismissal processes safely and strategically
✔️ Implement preventive and corrective measures to reduce legal risks
✔️ Act with full legal and documentary rigor when making sensitive decisions

Conclusion

This Supreme Court ruling marks a turning point in how unfair dismissal compensation is interpreted. It’s no longer just about meeting the minimum legal requirements but about ensuring that no fundamental rights are violated in the process.

Because in labor matters, what you do is important but how you do it is even more so.