Dismissal, resignation and severance

It is written for people who are considering, planning or carrying out a move to Spain. After reading it, you will know how your employment can end, what you should be paid and your first steps.

Start with "How a Spanish job can end and what you are owed". It gives the whole picture at a glance and points you to the detailed pages for your situation.

Unemployment benefit, immigration status after a job loss, court procedure and harassment complaints are not covered here.

Key rules

• Redundancy pay: For redundancy (objective or collective dismissal), the legal minimum is 20 days of salary per year of service, capped at 12 monthly payments.
• Unfair dismissal pay: For unfair dismissal, severance is 33 days of salary per year of service, capped at 24 monthly payments, with service before 12 February 2012 paid at 45 days per year.
• Fixed-term expiry pay: When a fixed-term contract expires you are owed 12 days of salary per year of service, prorated for partial periods.
• Deadline to challenge: You have 20 working days from the day after a dismissal takes effect to challenge it, and asking for conciliation first pauses that time.
• Redundancy notice: For an objective dismissal your employer must give written notice 15 days before the contract ends and make the severance available at the same time.
• Collective dismissal: A dismissal is collective when, within 90 days, it affects 10 workers in companies under 100, 10% in companies of 100 to 299, or 30 in companies of 300 or more.

Dismissal, resignation and severance: the whole process, step by step

• Probation: either side can end the contract (overview and fixed-term articles): at any time during a valid probation period, with no cause, notice or severance unless your collective agreement says otherwise

• Resigning: give your employer notice (resignation article): for the period set by your collective agreement or contract; 15 days is typical when neither says anything

• Collective layoff: employer opens consultation with worker representatives (redundancy article): when dismissals within 90 days reach the collective threshold; consultation lasts up to 30 calendar days, or 15 days in companies under 50 workers

• Objective dismissal: employer gives written notice with the cause and makes the severance available (redundancy article): 15 days before the contract ends, at the same time as the severance is made available

• Collective layoff: individual dismissal letters follow the final decision (redundancy article): at least 30 days after consultation opened

• Disciplinary dismissal: employer hands over a written letter with the facts and the date it takes effect (disciplinary dismissal article): on the day the dismissal is communicated

• Fixed-term contract ends: expiry pay falls due (temporary contract article): when the contract expires, at 12 days of salary per year of service

• Receive your final settlement, including untaken holidays, and write 'no conforme' if you disagree (final settlement article): when the employment ends

• Challenge the dismissal: ask for conciliation first, then go to court (final settlement article): within 20 working days of the day after the dismissal takes effect; conciliation pauses the clock

• After an unfair ruling, employer chooses readmission or compensation (severance article): within five days of notice of the judgment

• Employer breach: bring a claim to end your contract and receive severance (article on leaving with severance when your employer breaches your contract): within one year of the cause arising

Documents you may need

Income and work

• Written dismissal notice from your employer that states the cause — Redundancy and collective layoffs (despido objetivo and ERE)
• A written finiquito from your employer that itemises each amount — What your final settlement (finiquito) must include and when not to sign

Other documents

• A written dismissal letter — Is a disciplinary dismissal (despido disciplinario) fair, unfair or null?
• Proof that the compensation of 20 days per year — Redundancy and collective layoffs (despido objetivo and ERE)
• Confirmation that a copy of the notice went to your staff representatives — Redundancy and collective layoffs (despido objetivo and ERE)
• A copy of the finiquito you sign — What your final settlement (finiquito) must include and when not to sign
• Proof that the union delegates were heard — Is a disciplinary dismissal (despido disciplinario) fair, unfair or null?
• Your collective agreement — What your final settlement (finiquito) must include and when not to sign

Dismissal, resignation and severance: questions that cross several articles

Does severance differ between unfair dismissal, redundancy and a fixed-term contract ending?

Yes, the amount depends on how the job ends: 33 days of salary per year of service for unfair dismissal, 20 days for redundancy and 12 days when a fixed-term contract expires. Read the article on how much severance you are owed, then the redundancy article or the one on temporary contracts.

What changes if a dismissal is declared null instead of unfair?

A null dismissal has no effect, so you must be readmitted with back pay, while for an unfair one your employer chooses between readmission and compensation. Read the article on whether a disciplinary dismissal is fair, unfair or null, then the severance article.

Can I end my contract and still receive severance?

Yes, if a court upholds your claim over a serious employer breach such as unpaid wages, you receive the same severance as for unfair dismissal. Read the article on leaving with severance when your employer breaches your contract, and the severance article for the amounts.

Does signing the final settlement stop you challenging the dismissal?

No, signing the final settlement does not remove your right to challenge the dismissal in court, but writing 'no conforme' protects your position. Read the final settlement article for what to write, and the disciplinary dismissal article to judge whether the dismissal was lawful.