The Constitutional Court declared unconstitutional the text in the Labor Code that limited the amount of compensation that can be awarded to an employee illegally dismissed, regardless of the duration of the process or the severity of the damage suffered. The Court sent a letter to the Parliament, requesting the establishment of a legal mechanism that would allow the awarding of fair compensation to employees illegally dismissed, reports IPN.

Until the legislation is amended, the courts will determine compensation based on the actual losses suffered by the employee during the period when they were forced to be without a job. In determining the amount, the judges will take into account the specifics of each case, including the good faith of the employer and the employee in the conduct of the process.

Also, the courts will be able to deduct from the compensation the income earned by the employee in the meantime – for example, from another job or from unemployment benefits – and will only grant the difference compared to the salary they would have received if they had not been dismissed.

The limitation of compensation to 12 average monthly salaries of the employee was introduced through the amendments to the Labor Code in 2022. The People’s Advocate pleaded for the elimination of this limitation, arguing that the measure affects the employee’s right to full compensation. The Ombudsman raised similar objections during the approval stage of the bill, emphasizing that the measure is disproportionate, as applying the same ceiling in all cases does not take into account the specific circumstances and duration of the dispute. The removal of the ceiling will contribute to the strengthening of employees’ rights in the face of abusive dismissals.