Limits to dismissal due to COVID-19: scope and meaning of the «prohibition of dismissal» and the safeguard clause

Abstract

The COVID-19 pandemic has had a great impact in Spain. With the purpose of slowing down the spread of the virus and taking control of the situation, the Government declared the state of alarm and imposedrestrictions to people’s movement and social contact (including temporary confinement of the population at home). Moreover, with the aim of reducing the economic and social impact of such extraordinary circumstances, protecting workers and allowing to resume working activities after the crisis, the Government approved a package of urgent legislation, including a large list of measures in the field of Labour Law and Social Security. One of the main concerns has been the prevention of the loss of jobs. Therefore, dismissals on grounds of COVID were not allowed and the employers that have obtain economic support from the state to overcome the situation through the suspension of contracts, the change in working conditions or the reduction of working hours cannot dismiss the workers for 6 months. This paper assesses these two limitations to the employer´s ordinary powers, offers criteria to identify which contractual terminations are lawful and which are not under those rules and determines the consequences of their breach.