The passing of the new 22/2013 Act of December 23 of the State Budget for 2014 has negated Article 33.8 of the Spanish Workers’ Statute. Article 33.8 provided compensation by the FOGASA (Wage Guarantee Fund) in cases of indefinite employment contracts where dismissals were based on objective grounds and the companies had fewer than 25 workers.
The effect of the new 22/2013 Act means that companies that are struggling economically and have fewer than 25 workers must assume greater costs.
For additional information regarding objective dismissals in Spain,
