Dismissal in Spain
Collective Dismissal
A collective dismissal should be based on financial, technical and organisational reasons. A collective dismissal can only occur when the company's survival is at risk and it is necessary to adopt urgent measures.
When the reasons are accepted, the company may proceed to effect the dismissal, but with payment of a compensation. The legal compensation amounts to 20 days of salary per each year worked, up to a maximum of 12 months, or more depending on the contract. If the reasons are not accepted, the company can still proceed to the dismissal, in which case the compensation will be equivalent to 45 days per each year worked, up to a maximum of 45 months.
Disciplinary Dismissal
When a disciplinary dismissal occurs, the employer terminates the employment contract unilaterally on grounds of misconduct, alleged or not alleged.
Dismissal based on objective reasons
These grounds occur when, for instance, there is very little work, or if the employee is not suitable for the job to be performed or does not know how to perform it. When this type of dismissal occurs, the employee is entitled to 20 days of salary per each year of service, up to a maximum of 12 months. The highest compensation amounts to 45 days per each year worked, up to a maximum of 3.5 years. The employer shall inform the employee in writing about the dismissal, with minimum prior notice of 30 days. The letter of dismissal shall state the causes and the exact date of dismissal.
In the cases of dismissal based on objective reasons or disciplinary dismissal, Gimbrère International Lawyers can contest the dismissal before the Court on Social Matters. If the court rules in favour of the employee, he/she will be entitled to be paid past-due salaries from the time of dismissal.
