Abuse of Fixed-Term Employment in the Public Sector: Concept, Remedies and Sanctions under European Union Law

Abstract

This article examines the response of the Labour Chamber of the Spanish Supreme Court to the judgment of the Court of Justice of the European Union of 14 April 2026 (Case C-418/24, Obadal) and the implications of that ruling for the abuse of fixed-term employment in the public sector. After defining the scope of Clause 5 of the Framework Agreement annexed to Directive 1999/70/EC, it identifies the constituent elements of the EU concept of abuse of fixed-term employment, with particular attention to the notion of successive employment relationships, the impact of interruptions between contracts, and the requirement of objective reasons justifying the use of temporary employment. It also addresses the distinction between irregular temporary employment under domestic law and abuse of fixed term employment for the purposes of EU law. As regards its legal consequences, the article examines the incompatibility of automatic conversion into permanent status with the principles of equality, merit and ability governing access to public employment, as well as the inadequacy of the “indefinido no fijo” status as a remedial mechanism. Finally, it analyses the framework of compensatory damages following the Obadal judgment, the reinterpretation adopted by the Spanish Supreme Court, the impact of stabilisation procedures, and the role of administrative sanctions as instruments intended to ensure an effective, proportionate and dissuasive response to the abusive use of fixed-term employment.