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TSJA orders Ayuntamiento de Córdoba to pay 16,900 euros for retirement bonus

The court rules in favor of a former municipal employee claiming compensation stipulated in the collective agreement.

Facade of the Ayuntamiento de Córdoba in the afternoon sun.
IA

Facade of the Ayuntamiento de Córdoba in the afternoon sun.

The Social Chamber of the High Court of Justice of Andalusia (TSJA) has ordered the Ayuntamiento de Córdoba to pay 16,936 euros to a former municipal employee as an early retirement bonus.

The judicial ruling concludes a legal dispute initiated by an employee with nearly forty years of service who requested the compensation stipulated in the collective agreement. The court thus corrects the restrictive interpretation the City Council had applied to the economic rights of labor personnel upon retirement.
The former employee, who joined the staff in July 1983 and opted for early retirement in May 2022 at the age of 63, claimed the bonus stipulated in the municipal agreement for those voluntarily retiring between 60 and 64 years old. The base amount for 63-year-olds, updated according to the CPI, amounted to 16,936 euros.
Initially, the Social Court number 5 of Córdoba dismissed the lawsuit, relying on state austerity regulations that suspended such incentives during the economic crisis. The City Council used these restrictions to deny the payment, deeming it incompatible with budgetary stability laws.
However, the Social Chamber of the TSJA in Seville has overturned this decision, stating that the legal obstacle has been removed. The court emphasizes that the municipal collective agreement regained its full validity for ordinary staff after the state reform, and that the retirement bonus is a result of collective bargaining, benefiting both the employee and the administration by allowing staff restructuring.
The ruling validates the calculation of the final amount of 16,936 euros, including CPI updates, and orders the City Council to pay legal interest accrued since the filing of the lawsuit. The judgment is final regarding the facts, although an appeal for doctrinal unification before the Supreme Court is possible.