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Spain – EU Court ruling said temporary workers entitled to same severance pay rights as permanent workers (Bloomberg)

23 September 2016

The EU Court of Justice of the European Union said that Spain must grant temporary workers the same rights to severance pay as permanent workers, reports Bloomberg.

The ruling, which was dated 14 September, overturns Spanish labour law reforms that denied temporary workers the same benefits and redundancy pay as permanent workers.

Under the current Spanish labour legislation, permanent contract workers are entitled to compensation equivalent to 20 days per year worked if they are dismissed. Temporary staff are given compensation of 12 days while substitute temporary workers aren’t entitled to compensation at all regardless of the amount of time worked or duties carried out.

The Labour Ministry said in a statement that it would study the ruling and denied it would represent a ban on temporary contracts, which account for a quarter of all jobs, the second-highest rate in the European Union after Poland.

The ruling first came after a temporary substitute worker was fired from the Ministry of Defence in 2012 without any compensation. The worker disputed the firing and brought it to the attention of the Spanish government.

Meanwhile, unions have encouraged temporary workers who have been fired in the past year to come forward and take legal action for more compensation based on the ruling.