Dismissal is the unilateral termination of a work contract by the employer. Disciplinary dismissal occurs when a company believes that a worker has seriously breached and failed to comply with his or her duties. Upon proof of a breach, the labour relationship is terminated and the worker loses the right to any compensation.
One of the factors to bear in mind when calculating the compensation for unfair dismissal in Spain is the seniority of the worker within the company. For contracts signed after 12 February 2012, the compensation is 33 days’ worth of salary for each year worked. For contracts entered before this date, the compensation is calculated in two instalments.
The new legislation for companies whose habitual activity deals with minors requires companies to have a special certificate that accredits that none of its workers has committed sexual offences.
Generally, the social security regulation applicable to relocated workers depends on the country where the worker will develop his or her activity. However, there are exceptions depending on the relocation period and the destination country.
Where a dismissal is declared unfair, the company must choose between readmitting the employee or paying legal compensation.
A collective agreement, regulated by the Worker’s Statute in Spain, is an agreement between unions and companies that establishes the working conditions of the workers in the company (salaries, working schedule, etc.).
The permanent contract for entrepreneurs is a type of permanent contract for full time or part-time work, which aims to promote stable employment for entrepreneurs and SMEs (Small and Medium Sized Enterprises) through a range of fiscal bonuses and incentives.
Article 44 of the Workers’ Statute rules the succession of companies in Spain, reinforces the guarantees of the workers after the change of a company’s owner, improves the instruments of information and consultation, and complies with the obligation of transposing related European directives into Spanish law.
Companies in Spain with a lack of liquidity at the time of making severance payments can split up the payments of such compensation through a prior agreement with the workers’ representatives.
When the new Law of Labour Companies in Spain came into effect, it established a new legal framework for corporate entities by introducing important changes and improvements to better the way business is done and supplement already existing company types.
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