Dismissal, resignation and severanceArticle 1 of 7 · 8 min read
How a Spanish job can end and what you are owed
A quick map of the ways a Spanish job can end: fair, unfair or null dismissal, redundancy, contract expiry, failed probation and resignation. It shows what each route means for the paperwork and the money you are owed. For anyone employed in Spain.
Terms used
- Procedente — A dismissal declared procedente is fair: the judge accepts the employer's reason, and no compensation is due.
- Improcedente — A dismissal declared improcedente is unfair: the employer must either readmit you or pay compensation.
- Nulo — A dismissal declared nulo is null: it has no effect, and you must be readmitted with back pay.
- Periodo de prueba — The periodo de prueba is a written trial period at the start of a job when either side can end the contract freely.
Key rules
- Redundancy pay: Redundancy pays at least 20 days of salary per year of service, up to 12 monthly payments.
- Fixed-term expiry: A fixed-term contract that expires pays 12 days of salary per year of service.
- Probation: In a valid probation period, either side can end the contract with no notice and no severance.
- Nulo dismissal: A nulo dismissal means readmission with back pay, not a choice of payout.
- Fair dismissal: A procedente dismissal pays no compensation.
The short version
A Spanish job can end in several ways, and the money you get depends on which one applies. Work out which route you are on before you sign or accept anything.
- Dismissal for your conduct (disciplinary): the employer says you broke your duties. A judge can later call it procedente, improcedente or nulo.
- Redundancy (objective or collective dismissal): the employer ends jobs for economic, technical, organisational or production reasons.
- Contract expiry: a fixed-term contract reaches its end date or the work is finished.
- Probation: either side ends the contract during the trial period.
- Your own exit: you resign, or you agree an exit with the employer.
How a judge labels a dismissal
If you challenge a dismissal, the outcome is one of three labels.
Procedente (fair). The breach is proven and serious enough. The contract ends and you get no compensation.
Improcedente (unfair). The breach is not proven or not serious enough, or the employer skipped the formal requirements. The employer must choose between taking you back and paying you compensation.
Nulo (null). The dismissal is discriminatory, violates fundamental rights, hits a protected situation such as pregnancy or maternity, or is retaliation. It has no effect. You must be readmitted and paid the wages you missed. Do not confuse it with improcedente: you do not get a choice of payout from the employer.
Redundancy
For redundancy, whether objective or collective, the legal minimum is 20 days of salary per year of service, capped at 12 monthly payments. Partial years are counted in months. In a collective process, the agreement reached during the consultation period often improves on this, so read any offer closely before accepting.
When a fixed-term contract expires
When a fixed-term contract simply runs out, you are owed 12 days of salary per year of service, prorated for partial periods. Interim-replacement contracts (interinidad), training contracts and certain special contracts carry no such payment. Your collective agreement or sector rules may be more generous, so check them.
Probation
During a valid probation period (periodo de prueba), either side can end the contract freely: no reason, no notice and no severance, unless your collective agreement says otherwise.
- The period must be agreed in writing.
- The maximum is set by the collective agreement. If there is none, it is 6 months for qualified technicians and 2 months for other staff, or 3 months for non-technicians in companies under 25 workers.
- On fixed-term contracts of up to 6 months, the limit is 1 month, unless the agreement says otherwise.
- Ending probation is void if it is discriminatory or violates fundamental rights. Pregnancy, maternity and similar situations are protected.
Time worked in probation still counts: you keep the rights from the work you did.
Resigning or agreeing an exit
If you resign, give the notice your contract or collective agreement requires. A mutual agreement to end the job is also valid, but check what you are signing, because it may close off any later claim. Employment can also end for other reasons, such as retirement, permanent disability or the employer's death or closure.
What to do next
Use the decision, timeline and warnings below to match your situation to a route. If your contract is ending or probation failed, read the section on that situation. Keep every letter and message from your employer.
Choosing between options
Which kind of ending are you dealing with, and what does it mean for you?
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Probation ending: Fits if you are still inside a written probation period: either side can end the contract without cause, notice or severance.
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Dismissal declared procedente (fair): Fits if the judge finds the breach proven and serious enough: the contract ends with no compensation.
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Dismissal declared improcedente (unfair): Fits if the breach is not proven, not serious enough, or the formalities were missed: your employer chooses between taking you back and paying compensation.
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Dismissal declared nulo (null): Fits if the dismissal is discriminatory, breaches fundamental rights, hits a protected category or is retaliation: it has no effect and you are taken back with back pay.
Check first whether you are in a valid written probation period. If not, the outcome depends on whether the breach is proven and serious, the formalities were followed, and whether a protected reason lies behind it.
Timeline and deadlines
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Probation period runs, with either side free to end the contract without severance: for up to 2 months for most workers, 3 months in companies under 25 workers, or 6 months for qualified technicians unless your agreement says otherwise
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Receive 12 days of salary per year of service when a fixed-term contract expires: when the contract expires
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Receive severance for a redundancy of 20 days of salary per year of service, up to 12 monthly payments: when the redundancy takes effect
What to watch out for
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Probation can end with no pay-off: During a valid probation period you can be let go without cause, notice or severance. This only works if the probation was agreed in writing and is within the allowed length. Check that your contract has a written probation clause and compare its length with your collective agreement. If it is missing or too long, get advice before accepting the ending.
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A dismissal can be void in probation: An ending during probation is void if it is discriminatory, breaches fundamental rights or hits a protected situation such as pregnancy or maternity. If you think this is the reason, do not simply accept it. Ask for the reason and take advice from a labour lawyer or union.
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A fair dismissal pays nothing: If a judge declares the dismissal procedente, the contract ends without compensation. If it is improcedente, your employer must choose between taking you back and paying compensation. Do not assume you lose out: if the breach is not proven or not serious enough, or the formalities were missed, the dismissal can be declared improcedente.
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Nulo dismissal is not the same as improcedente: A nulo dismissal, such as one for discrimination, a fundamental rights breach or retaliation, has no effect and means you must be taken back with back pay. Say clearly in your challenge if you think the real reason is discrimination or retaliation, so the court can consider nulo.
What if my temporary contract ends or probation fails?
Your temporary contract reaches its end date
When a fixed-term contract expires, you are owed 12 days of salary per year of service, prorated for partial periods. A contract that ran for six months, for example, earns you half of that.
Some contracts carry no expiry compensation. These are contracts that cover a named person's absence (interim replacement) and training contracts. Your contract should say which type you have.
There is no general legal notice period for a contract that simply reaches its end date or the end of the work it covers. Your collective agreement (the sector or company deal that sets pay and conditions) may set its own notice rules or a better compensation figure, so read it. Keep any written notice your employer gives you.
Your employment ends during probation
During a valid probation period, either you or your employer can end the contract at any time.
Watch for these points:
- It must be in writing. The probation period only counts if your contract states it.
- Fixed-term contracts have shorter limits. For a contract of up to 6 months, probation can last 1 month at most, unless the collective agreement says otherwise.
- You are paid for the work you did. Ask for your final pay for the days worked and any unused holiday.
- Some endings are void. An ending because of discrimination, a breach of your fundamental rights, or pregnancy, maternity or a similar protected situation can be challenged.
If you think your probation was too long or the ending was unfair, ask a union or a labour lawyer soon. Deadlines to challenge a dismissal are short.
Frequently asked questions
Can my employer end my contract during probation without paying severance?
Yes, during a valid probation period either side can end the contract without cause, notice or severance, unless your collective agreement says otherwise. The period must have been agreed in writing.
What happens if my dismissal is declared nulo rather than improcedente?
A nulo dismissal has no effect, so you must be taken back and paid the wages you missed. With improcedente, your employer chooses between taking you back and paying compensation. Nulo applies to discriminatory dismissals, breaches of fundamental rights, protected categories and retaliation.
More in Dismissal, resignation and severance
- Is a disciplinary dismissal (despido disciplinario) fair, unfair or null?
- Redundancy and collective layoffs (despido objetivo and ERE)
- How much severance (indemnización) you are owed
- What your final settlement (finiquito) must include and when not to sign
- Resigning from a Spanish job, notice and what you give up
- Leaving with severance when your employer breaches your contract (Article 50)
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