On 18 November 2024, the Spanish Supreme Court issued a landmark ruling with significant implications for labour and employment relations in Spain.

Previously, under the Workers’ Statute, employers were not required to hold a prior hearing for employees in disciplinary dismissal cases, unless the employee was unionized or a legal representative of the employees.

However, with this new ruling, effective from November 19, 2024, the Supreme Court has updated its position. Employers are now obliged to give employees the opportunity to respond to the allegations against them before proceeding with a disciplinary dismissal (a “prior hearing”). This decision is based on the need to directly apply Article 7 of Convention 158 of the International Labour Organization (ILO) of 1982, in force in Spain since 1986.

A failure to comply with this requirement may lead to disciplinary dismissals being declared unfair (“improcedente”) by the courts if challenged by the employee. This could result in the employer being ordered to pay potentially significant compensation to the dismissed employee (33 days of salary per year worked, with a maximum limit of 24 monthly payments).

We recommend that all employers operating in Spain review and update their internal dismissal procedures to ensure compliance with this new legal requirement.