Spain Labour Reform 2021 and Permanent Discontinuous Contracts: Supreme Court Case Law Two Years On
Analysis of key Supreme Court rulings on Spain’s 2021 labour reform (RDL 32/2021): permanent discontinuous contracts, termination of temporary contracts and new contractual arrangements.
# Spain's 2021 Labour Reform and the Supreme Court: Key Rulings
RDL 32/2021 of 28 December was Spain's biggest labour market reform in a decade. It restricted temporary contracts and expanded the permanent discontinuous contract (fijo-discontinuo). Three years on, the Supreme Court has clarified its scope.
Key Supreme Court Rulings 2023-2025
STS 14 Mar 2024: Fraudulent temporary contracts on termination give rise to unfair dismissal compensation (33 days/year, max 24 months), not just the 20-day termination payment previously applicable.
STS 22 Jan 2025: Exceeding the 25% temporary workforce limit does not automatically convert contracts to permanent. An infraction arises but workers need declaratory court action to obtain permanent status.
STS 19 Sep 2024: Failure to call back a permanent discontinuous worker constitutes contract suspension, not termination. Tacit dismissal is only established when the employer clearly has no intention of rehiring.
STS 28 Feb 2025: Chaining of temporary contracts under 18 months within a 24-month window does generate permanent status, even across different contract types, provided there is the same employer and position.
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