Dismissal in Spain

Dismissal in Spain

In Spain, the dismissal of an employee can be decided at any time (except in cases such as pregnancy or certain exceptional situations, which may make the dismissal null and void), and there is no system similar to Article 18 of Italian law.

The dismissal must be communicated in writing, stating the reasons and the date on which it will take effect, which can be immediate.

In Spain, there is no severance pay. Termination for just cause does not require the company to pay severance (only proportional parts of overtime pay and unused vacation days).

If the termination is not due to just cause, the company is required to pay severance, which is calculated as follows:

• 33 days of salary for each year of work, with a limit of 24 months.

• 20 days of salary for each year of work, with a limit of 12 months, if the termination is for justified objective reasons: economic, technical, organizational, or production-related reasons that require the elimination of a specific job position, or multiple positions, or the closure of the business.

If the dismissal is for objective reasons, the notice period is 15 days. If no notice is given, the company must pay the equivalent amount in money.

The dismissed employee has 20 working days to request administrative conciliation to avoid possible proceedings in labor courts.

If the company wishes to terminate the relationship immediately without going through a prior investigation procedure to determine the causes, it can dismiss the employee without any notice as an immediate dismissal. However, this will be considered a dismissal without cause, and the severance pay of 33 days per year must be paid. To avoid severance pay in cases of serious employee misconduct, a procedure of consultation with the employee should be followed, giving the employee an opportunity to defend themselves. Specific consultation procedures, which typically last about three days, are usually outlined in collective bargaining agreements.

The dismissal date is always determined by the company, and in conciliation, the amount of severance is typically discussed, including whether or not there was just cause.