New draft Law enhances worker protections and clarifies employment termination conditions

At a glance

• On 3 January, the Official Gazette published a new draft law on the efficiency of the judiciary.
• Among other relevant developments in labour law, the new bill introduces new situations in which termination of employment will be null and void. 

On 3 January, the Official Gazette published a new draft law on the efficiency of the judiciary. Among other relevant developments in labour law, the new bill introduces new situations in which termination of employment will be null and void.

The reinstatement of objective nullity for dismissals applies to workers who have requested a leave of absence (such as five days of leave to care for a relative in the hospital or at home after surgery) or schedule adjustments (including remote work requests) to better balance personal and work life. This protection, previously part of Articles 53 and 55 of the Workers' Statute, was removed due to the Parity Law but has now been restored, ensuring that dismissals in these cases are considered null unless proven otherwise.

The Workers' Statute has also been amended to clarify the conditions under which repeated delays in salary payments and wage debts justify an employee's right to terminate their contract with compensation. A delay is defined as a payment date exceeding 15 days. The justification is valid if three full monthly salaries are owed within a year (even if non-consecutive) or if there are delays in salary payments over six months (even if non-consecutive).

Finally, it has been clarified that severance payments are exempt from IRPF (Personal Income Tax) up to the maximum amount specified by the Workers' Statute. For collective or objective dismissals (due to economic, technical, organisational, or production reasons), the exemption applies up to the limit for unfair dismissal compensation. However, severance agreed upon through collective agreements, pacts, or contracts will not be considered exempt unless they are part of the pre-court process before the relevant administrative body.

These changes aim to provide clearer guidelines and protections for workers and will enter into force three months after the law was published.