Did you know that companies are legally required to notify employees of any changes affecting their employment relationship, even during a leave of absence? Failing to do so can have serious consequences, such as being considered an unfair dismissal.

 

Labor advisory

 

The legal duty to inform the employee

Both the Workers’ Statute and established case law state that employers must inform employees of any substantial changes to their employment relationship, as well as any decisions directly affecting their contractual conditions, including special situations such as leave, suspensions, or voluntary absences.

This duty to inform is not just a formality: it is directly linked to the employee’s right to effective judicial protection and to the principles of transparency, good faith, and legal certainty in the employment relationship.

When a company fails to notify, it prevents the employee from fully exercising their rights, from access to legal remedies to the ability to adapt or respond to decisions affecting them.

 

What are the consequences of not notifying?

Failing to notify may result in:

  • Nullity or unfair dismissal, due to procedural flaws or violation of fundamental rights.
  • Invalidity of the process followed by the company.
  • Significant financial compensation for damages caused.
  • Loss of credibility and trust in business management, especially in public or institutional contexts.

A recent ruling from the High Court of Justice of Cantabria clearly illustrates how this omission can escalate into a major legal dispute.

 

When corporate silence leads to unfair dismissal

The case

The conflict occurred at the Camargo City Council, where a worker with a non-permanent indefinite contract had requested a five-year voluntary leave of absence.

During his absence, the council converted his position into a civil service post, which was later filled by a successful candidate. As a result, the original job position disappeared, without the employee being informed at any point.

Upon completing his leave and requesting to return, the council denied the request, citing the absence of a relevant position. The employee filed a lawsuit for dismissal.

The ruling

The High Court of Justice of Cantabria ruled that the dismissal was unfair and ordered the City Council to pay €39,953 in compensation.

Although the court acknowledged that effective reinstatement was not feasible (due to the lack of a position), it applied the concept of virtual reinstatement: the dismissal is declared invalid, but the employee is not reinstated for material reasons.

The most significant aspect of the ruling was that the court considered the lack of notification during the leave of absence a key factor in declaring the dismissal unfair, as it constituted a violation of the right to effective judicial protection.

 

What should companies keep in mind?

At Adlanter, as legal advisors specialised in labour law, we highlight the key takeaways from this ruling:

  • Companies must notify in writing and with proof of any structural or functional change that may affect employees, regardless of whether they are currently active.
  • It is essential to guarantee employees’ rights to information and reinstatement in cases of leave or suspension of the contract.
  • Unilateral decisions without communication can be invalidated by the courts, leading to significant financial consequences.
  • And most importantly: legal advice as a preventive measure is always more cost-effective than a legal penalty.

At Adlanter, we help you implement this regulation clearly, safely, and without complications. Explore our dismissal and labour conflict advisory services to protect your company.

Conversation

Do you have any questions?

If you have any questions after reading "The obligation to notify the employee of any change in their employment conditions.", we are here to help you.

Let's talk. We guide you clearly and step by step.

Contact us now