Supreme Court ruling on disciplinary sanctions: Implications for employers in Spain

At a glance

• The Spanish Supreme Court ruled on 10 June 2025 a case involving disciplinary sanctions on the largely opened question on whether an employer can impose a lighter sanction than what is stipulated in for the type of infraction.
• The court upheld the employer's right to impose a lighter sanction, emphasising the principles of proportionality and the employer's discretion in disciplinary matters.
• Employers can confidently impose lighter sanctions provided they are within the range of sanctions specified in the applicable collective agreement. Employers are encouraged to consider the individual circumstances of each case, promoting a more balanced and fair approach to discipline.

A recent ruling by the Supreme Court of Spain on 10 June 2025 has significant implications for employers across the country. The case focused on the disciplinary sanctions imposed by the employer on an employee for verbal misconduct. The primary legal question was whether an employer has the authority to impose a lighter sanction than what is stipulated for a 'very grave' infraction.

In its decision, the Supreme Court upheld the employer's right to impose a lighter sanction, emphasising the principles of proportionality and the employer's discretion in disciplinary matters. This ruling is particularly important as it reinforces the flexibility employers have in managing disciplinary actions. By allowing for lighter sanctions, the court acknowledges that not all infractions, even if classified as 'very grave,' necessarily warrant the harshest penalties. This approach promotes a more nuanced and individualised consideration of each case, considering the specific circumstances and context of the employee's behaviour.

For employers, this ruling provides a clearer framework within which they can operate. It affirms that if the sanctions imposed are within the range specified in the applicable collective agreement, employers have the discretion to determine the appropriate level of discipline. This flexibility can help in maintaining a balanced and fair approach to employee relations, potentially reducing the risk of legal challenges when lighter sanctions are applied.

Further, this ruling sets a legal precedent that supports the employer's discretion in disciplinary actions. It underscores the importance of proportionality in disciplinary measures, encouraging employers to consider the individual circumstances of each case rather than applying a one-size-fits-all approach. This can lead to a more harmonious workplace environment, where employees feel that their actions are judged fairly and contextually.

In summary, the Supreme Court's decision highlights the importance of proportionality and discretion in disciplinary actions, offering employers greater flexibility in managing workplace conduct. This ruling not only supports the employer's authority but also promotes a fairer and more balanced approach to discipline, which can ultimately benefit both employers and employees.