EU: the CJEU takes a first step in favor of equal treatment in terms of compensation for termination of an employment contract whether it is a temporary or permanent contract

On 14 September, the CJEU delivered a ruling on a case in which it affirms that in principle, nothing justifies any difference in terms of compensation for workers on temporary or on permanent employment contracts. The case calls Spanish law into question, which excludes ‘workers on ‘replacement’ (interinidad) employment contracts from the right to compensation when their contracts are terminated due to the return of the original absentee employee. In contrast, workers on permanent employment contracts receive compensation to the tune of 20 days per year of service. However, numerous other European laws may now be called into question in so far as it is pretty common to have different regimes depending on the nature of the employment contract.