Spanish court overturns Mercadona's dismissal of 20-year employee over ham

Mercadona loses the dismissal of a veteran employee over ham and salami

How much is a disciplinary dismissal worth? For the company, nothing: the worker leaves without compensation. For the employee, a lawsuit that can drag on for years. The courts have just overturned Mercadona's decision to fire a worker with more than two decades of service over a few packets of ham and salami, and the ruling forces the company to choose between reinstating him or paying €53,981.30 in compensation. The figure is no accident: it comes from applying the rules on unfair dismissal to a long working life.

The case exposes the fine print of disciplinary dismissal in Spain. The company alleges justified grounds, the worker keeps what he took, and if he wants to fight back, he has 20 working days to file for pre-trial mediation. Many never do. And that is where the business lies: an uncontested disciplinary dismissal is an accounting saving, not a legal problem.

What does it really cost to take a dismissal to court?

The labour courts are free for workers: there are no fees, and the law recognises free legal aid in employment cases. A lawyer is not mandatory at first instance, though it is advisable to have one. Unions offer legal services to members — often with a minimum membership period required — and quite a few employment lawyers work on a no-win, no-fee basis, taking a percentage of what is recovered with no upfront payment.

The real obstacle is not the cost of the process. It is the time and the toll it takes. A dismissal case can go through first instance, appeal and cassation: up to three trials with their corresponding waits. For compensation of €3,000 or €5,000, many workers conclude it is not worth it. For €53,981.30, the equation changes.

The problem is not the compensation: it is age

Over 40, and worse over 50, dismissal is not measured in euros. It is measured in years out of the labour market. Long-term unemployment is concentrated precisely in that age group, and €50,000 in compensation does not cover a decade without a job. Some calculate that with that amount you can live for just over two years, and at certain ages re-employment may never come.

The subsidy for over-52s is around €480 a month — linked to the IPREM, Spain's public income indicator — and, importantly, it pays social security contributions for retirement above the minimum base. It is a cushion, not a solution. Anyone who exhausts unemployment benefits before 52 must remain registered as a jobseeker to avoid losing the right.

The asymmetry nobody disputes

A company can impose a disciplinary sanction on grounds the worker disputes; the worker, however, has no equivalent mechanism to penalise a company that fails to pay overtime. The comparison keeps coming up: a company that breaks the rules does not face the same consequences as an employee who does. The system treats some as masters and others as cattle, one contributor sums up.

Against that, the liberal argument: labour relations only work if they are free, and any exit cost makes hiring more expensive. Dismissal should be free, that school of thought holds, because the risk of hiring holds back job creation. The usual counterargument: with no exit cost, the weakest link is at the mercy of the strongest.

---

Mercadona has zero tolerance for pilfering, even with expired products. The ruling does not say stealing is free: it says a disciplinary dismissal has to be proven. And that 20 years of service weigh more than two packets of cold cuts. Next time, check the camera before signing the settlement.