Labour litigation is increasingly decided before trial
Early preparation and negotiation shift the focus outside the courtroom. Iberian Lawyer analyzes this shift based on a study by Cuatrecasas
by gonzalo blázquez de sande
Experts: Ignacio Jabato, partner in the legal department; Rubén Doctor, partner in the labour department; and Albert Martín, senior labour associate at Cuatrecasas.
The landscape of Labour litigation in Spain is evolving, with disputes increasingly shaped by early strategic decisions rather than courtroom dynamics. Drawing on a Cuatrecasas study and a late-March webinar, Iberian Lawyer examines the shift toward a more structured, cost-conscious approach to managing Labour conflicts. Ignacio Jabato, partner in the legal department; Rubén Doctor, partner in the labour department; and Albert Martín, senior labour associate, point to a move away from reactive litigation.
CONCILIATION AND COST CONTROL IN LABOUR LITIGATION
According to the study data of based on 2025, the gap between judicial rulings and court-mediated settlements continues to widen. Individual cases not related to dismissal stand out, with average compensation in judgments reaching €6,282 (+9.6%) compared with €4,939 in judicial settlements—a difference of €1,343. Albert Martín explains: “Conciliation is not the only option, but it is a high-value tool that offers potential savings when the economic risk is medium or low and the risk of a court ruling aligns with the amount claimed by the plaintiff”.
Early negotiation saves not only on compensation but also on internal and external litigation costs. Of the 298,240 cases resolved, 73% were individual in nature, and Labour litigation in Spain remains focused on dismissals and contractual disputes, though pretrial mediation serves as an effective filter: “Many individual cases are resolved before reaching trial”, adds Albert Martín.
The combination of greater legal complexity and increased economic risk, including claims for nullity and damages, strengthens conciliation as a strategic cost-control tool.
LESS ROOM FOR PROCEDURAL TACTICS
The introduction of Organic Law 1/2025 of January 2 on measures to improve the efficiency of the Public Justice Service has brought significant changes to the Spanish judicial system. It entered into force in April 2025. Among other measures, it mandates the early submission of evidence in Labour proceedings, limiting last-minute strategies. “Litigation is becoming a matter of planning rather than reaction”, notes Rubén Doctor.
…
