Ending a nanny's employment correctly

Terms used

• Desistimiento — Desistimiento is the employer's right to end a household employment without cause, by giving written notice and paying compensation.
• Finiquito — The finiquito is the final settlement listing everything you owe your nanny when the employment ends.
• Baja — The baja is the deregistration of your nanny from Social Security when the employment ends.
• Certificado de empresa — The certificado de empresa is a certificate of work you give your nanny, needed for example to claim unemployment benefit.

Key rules

• Trial period: Ending without notice during a trial period works only if it was agreed in writing before work began.
• Notice: Ending without cause needs written notice of 20 days after a year or more of service, or 7 days if less.
• Compensation: Pay 12 days of salary per year of service, up to 6 monthly payments, together with the written notice.
• Baja: Submit the Social Security baja within 3 calendar days of the end of the employment.
• Challenge: A nanny dismissed for misconduct has 20 working days to challenge it in the labour court.

Choose your route first

You have three ways out, and each has different formalities. Pick before you say anything to your nanny. The decision tool below helps you choose.

• Trial period: the simplest, but only if it was agreed in writing before work began.
• Ending without cause (desistimiento): you give written notice and pay compensation.
• Disciplinary dismissal: only for serious and culpable misconduct, and the riskiest if you cannot prove it.

Ending during the trial period

A trial period only exists if it was agreed in writing, and it cannot exceed two months. While it runs, either side can end the contract without notice or compensation. You still pay for the time worked, and your nanny stays registered with Social Security until the end date. If nothing was signed before work began, you cannot use this route. Go to the next one.

Ending without cause: notice and compensation

This is the normal route when there is no misconduct. The notice must be in writing and say that you are ending the employment.

• Notice: 20 days if your nanny has worked for you a year or more, 7 days if less than a year.
• Compensation: 12 days of salary per year of service, up to a maximum of 6 monthly payments.
• When to pay it: hand over the written notice together with the compensation amount, and pay the compensation at the same time.

If you give less notice than required, you owe salary for the missing days. For example, ending a two-year employment with only 10 days of notice means paying 10 more days of salary.

Dismissal for serious misconduct

You can dismiss for a serious and culpable breach, such as theft or serious disrespect. Give a written notice that describes the facts and the date the dismissal takes effect. Be specific: vague wording is the most common reason these dismissals fail.

Your nanny can challenge it in the labour court within 20 working days, after a conciliation attempt at the mediation service. The outcome depends on the ruling:

• Fair (procedente): no compensation.
• Unfair (improcedente): you pay 20 days of salary per year of service, up to 12 months, or take your nanny back.
• Void (nulo): you must take your nanny back.

If you are not sure you can prove the facts, ending without cause is usually safer.

Paperwork when the employment ends

Whatever route you choose, do all of this:

1. Finiquito: prepare it. It lists pending salary, the proportional share of extra pay, unused holiday pay and any compensation. Your nanny can sign it as "no conforme" if they disagree, and should keep a copy.
2. Baja: submit the Social Security baja within 3 calendar days of the end of the employment, online or through the Social Security office.
3. Certificate of work: give your nanny the certificado de empresa where needed, for example to claim unemployment benefit.

Rules for household work changed in 2022, so confirm your exact notice and calculation with a labour adviser or the Labour Ministry before you act. The documents, timeline and warnings below cover the rest.

Choosing between options

How should you end your nanny's employment?

• End it during the trial period: Fits if a trial period of up to two months was agreed in writing and you are still within it. You give no notice and pay no compensation, only for the time worked.

• End it with notice and compensation: Fits if you simply want to end the employment without a specific fault. Give written notice of 20 days if your nanny has worked for you a year or more, or 7 days if less than a year, and pay 12 days of salary per year of service, up to 6 monthly payments.

• Dismiss for serious misconduct: Fits only if your nanny committed a serious and culpable breach. You give written notice describing the facts and the date it takes effect, and your nanny can challenge it in court.

If you are within a written trial period, use it. Otherwise, if there is no serious breach, end with notice and compensation. Dismiss for misconduct only for a serious and culpable breach.

Timeline and deadlines

• Give written notice if you end the employment without cause and the nanny has worked for you less than a year: 7 days before the end date

• Give written notice if you end the employment without cause and the nanny has worked for you a year or more: 20 days before the end date

• Pay the compensation of 12 days of salary per year of service, up to 6 monthly payments: at the same time as the written notice

• Give a written dismissal notice describing the facts and the date it takes effect, if dismissing for serious misconduct: before the dismissal takes effect

• Give the finiquito and, where needed, the certificate of work: when the employment ends

• Your nanny may challenge a disciplinary dismissal in the labour court, after a conciliation attempt: within 20 working days of the dismissal

Documents you need

• Written agreement of the trial period, signed before work began. Without it you cannot end the contract under the trial period.

• Finiquito (final settlement), prepared by you as the employer. It lists pending salary, the proportional share of extra pay, unused holiday pay and any compensation. Your nanny can sign it as "no conforme" and keeps a copy.

• Social Security baja (deregistration), submitted by you online through the Social Security's Import@ss or Sistema RED service, or through the Social Security office.

• Certificate of work (certificado de empresa), given by you to your nanny where needed, for example to claim unemployment benefit.

What to watch out for

• A weak disciplinary dismissal can be ruled unfair: If your nanny challenges a disciplinary dismissal and the court finds it unfair (improcedente), you pay 20 days of salary per year of service, up to 12 months, or you must take your nanny back. Dismiss for misconduct only for a serious and culpable breach. Describe the facts and the date it takes effect in the written notice, and keep evidence.

• A dismissal can be ruled void: If the court declares the dismissal void (nulo), you must reinstate your nanny. Get advice from a labour adviser before dismissing, and if you simply no longer want the nanny, end the employment with notice and compensation instead.

Frequently asked questions

Can I end a nanny's contract without notice during a trial period?

Yes, during a trial period you can end the contract without notice or compensation, but only if the trial period was agreed in writing.

What happens if I do not give my nanny the full notice?

If you do not give the full notice, you owe your nanny salary for the missing notice days.

Can my nanny sign the finiquito if they disagree with it?

Yes, your nanny can sign the finiquito (the final settlement) marked as "no conforme", which means signed but not agreed.

What do I owe if a disciplinary dismissal is ruled unfair?

If the court rules the dismissal unfair (improcedente), you pay 20 days of salary per year of service, up to a maximum of 12 months, or you take the nanny back. If it is ruled fair there is no compensation, and if it is ruled void (nulo) you must reinstate the nanny.