Compensation for non-pecuniary damages in the event of arbitrary

5 June, 2024

Context of the Case

A worker was arbitrarily dismissed three times by his employer. These unjustified dismissals led the worker to file a lawsuit for arbitrary dismissal and moral damages before the competent authorities.  

Judicial Decision

The case reached the Supreme Court, which, through Cassation No. 20544-2016-Lima published on July 1, 2024, the Second Chamber of Constitutional and Social Transitory Law decided in favor of the worker. The court determined that the dismissals were not only arbitrary, but also caused significant moral damage to the worker, thus justifying the indemnity of S/ 10,000.  

Grounds for the Ruling

The Supreme Court based its decision on the repeated arbitrary conduct of the employer, which violated the employee’s labor rights, causing emotional stress and affecting his economic and personal stability. This indemnity seeks to compensate the moral damage suffered by the worker due to the repeated and unjustified conduct of his employer.  

Implications of the Decision

This decision sets an important precedent for the protection of labor rights in Peru. It reinforces the idea that employers must act fairly and justly, and that arbitrary dismissals will not be tolerated without consequences. Workers are entitled to a fair working environment and any violation of this right may result in compensation for moral damages.  


The decision has been welcomed by labor unions and labor rights advocates, who see it as an important victory for workers. On the other hand, some employers have expressed concern about the impact of such rulings on hiring and firing policies.  

Source: Casacion 20544-2016