This resolution establishes that the compensation must be dissuasive so that the employer does not break the law and compensatory for the worker who is dismissed. According to the Committee, it is considered irregular by setting a predetermined limit that is practically insurmountable, so it should force a change in the regulations.

The article of the European Social Charter states that signatory countries must ensure that, in the event of unfair dismissal, “all workers have the right to protection”, for which they must be able to turn to an “impartial body”. According to the Committee, compensation must be “both proportional to the harm suffered by the victim and have a sufficiently dissuasive effect on the company”.