The procedure of objective dismissal in Spain

A company that decides to dismiss a worker for objective reasons must justify the causes thereof before a judge so that the dismissal is not considered unfair and follow the procedure stated in Art. 53 of the Worker´s Statute that establishes:

  • Delivery of the dismissal letter to the worker: this must include both the effective date of the dismissal and a description of the facts that motivated the termination of the employment relationship.
  • Delivery to the worker, along with the letter of dismissal, compensation equivalent to 20 days of salary per year worked, payed in a maximum of 12 instalments.
  • A notice, fifteen days prior to the effective date of the dismissal, or for failure to do so, a payment for those days in the settlement (failure of notice does not generate unfairness).

Failure to comply with the procedure may lead the dismissal to be considered unfair. The consequences will be at the discretion of the company and, except in special cases, consist in either the payment of compensation or reinstatement of the worker (with payment of the salaries arrears from the moment of dismissal).

The amount of compensation

The compensation for objective dismissal in Spain is 20 days per year worked paid in a maximum of 12 instalments. The amount of compensation depends on two factors: the worker’s seniority and their salary.

  • Seniority: seniority is calculated by full months and is taken into account from the beginning of the employment relationship (even if the employment had been through temporary or training contracts or via a temporary employment agency contract).
  • Regulated salary: for the purposes of compensation, the salary received during the last month, prorated by any extra payments, will be taken into account.

The dismissal letter must identify and specify the place or the way in which the compensation will be made without the worker having to do supplementary paperwork. The dismissal may be declared inadmissible if the compensation:

  • Is not paid when the dismissal letter is delivered, or, at the latest, the time of the effective date of dismissal
  • The correct amount is not paid (except for an excusable error).

This article is not considered as legal advice

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