In Spain, the Workers' Statute governs the minimum notice period required for termination of employment contracts. The general rule mandates a minimum of 15 calendar days' written notice for termination by either the employer or the employee. However, there are exceptions to this rule.

Exceptions to the 15-Day Notice

Employers are not required to provide a notice period for dismissal due to disciplinary reasons (grave misconduct). During the initial probationary period defined in the employment contract, termination can often occur without a notice period, although some collective bargaining agreements may specify otherwise. Special termination rules may apply to senior executives, with notice periods potentially exceeding 15 days as outlined in specific regulations.

Collective Bargaining Agreements

Collective bargaining agreements negotiated by industry unions and employer associations can supersede the general 15-day notice period. These agreements may stipulate a longer notice period for specific sectors or job categories.

Notice Period Options

The preferred method of providing notice is a written document delivered directly to the employee or employer, clearly stating the termination date and reason (for employer-initiated termination). Employers can choose to compensate the employee for the required notice period instead of providing actual notice.

Consequences of Non-Compliance

Failure to comply with the notice period requirements can lead to financial penalties for the non-compliant party. The employee who fails to provide notice may forfeit wages for the notice period, while employers who don't provide notice may be liable to pay the employee wages for the unserved notice period.

In Spain, severance pay, or "indemnización por despido," is a legal right for employees as outlined in the Workers' Statute (Estatuto de los Trabajadores).

General Eligibility

Employees dismissed due to economic, technological, organizational, or production-related reasons, known as objective dismissal, are entitled to severance pay. Additionally, employees whose dismissal is declared unfair by a labor court are entitled to a higher severance pay.

Severance Pay Calculation

For objective dismissal and collective redundancies, employees are entitled to 20 days of salary per year of service with the company, capped at 12 months' salary. In the case of unfair dismissal, employees are entitled to 33 days of salary per year of service worked for the company up to a maximum of 24 months' salary. For contracts signed before February 12, 2012, the severance entitlement is 45 days per year of service with a maximum of 42 months' salary.

Important Considerations

Employees dismissed for disciplinary reasons, justified by serious misconduct, are not entitled to severance pay. Employees on temporary and fixed-term contracts might be entitled to a specific type of severance under certain conditions. Severance pay may also be negotiated between employer and employee through mutually agreed termination settlements.

Payment Obligation

The employer is legally obligated to provide severance pay to the employee at the time of dismissal. This is a crucial aspect of Spanish labor law, and employers must understand the regulations within the Workers' Statute governing severance pay entitlements and calculations to ensure compliance with their legal obligations.

In Spain, the termination of an employee's contract is strictly regulated by the Workers' Statute (Estatuto de los Trabajadores). There are three primary types of employment termination: Objective Dismissal, Disciplinary Dismissal, and Collective Redundancy (ERE).

Types of Termination

• Objective Dismissal: This occurs when the employer terminates the employment contract for economic, organizational, technological, or production-related reasons.
• Disciplinary Dismissal: This is when the employer terminates the contract for reasons directly related to the employee's conduct or performance, such as serious misconduct or breaches of contract.
• Collective Redundancy (ERE): This is a process initiated by the employer affecting a specific number of employees due to economic, organizational, technological, or production-related reasons.

General Termination Requirements

Regardless of the type of termination, the employer must adhere to the following:

• Written Termination Letter: The employer must provide a written termination letter to the employee indicating the date of termination and the specific reasons for dismissal.
• Notice Period: Employers must provide a minimum of 15 calendar days' notice, unless the termination is due to disciplinary reasons or during the probationary period.

Specific Requirements

Objective Dismissal:

• Consultation Period (ERE): For collective redundancies, a pre-dismissal consultation period with employee representatives is required.
• Administrative Authorization (ERE): For collective redundancies, administrative authorization might be required in specific cases.

Disciplinary Dismissal:

• Just Cause: The employer must clearly demonstrate a serious breach of contract or misconduct by the employee.
• Procedure: The employer must provide the employee with an opportunity to respond to the allegations.

Employee Rights

• Challenge Dismissal: Employees have 20 working days to file a claim with the labor court to challenge a dismissal they believe is unjustified.
• Union Representation: Employees may involve union representatives or labor lawyers during the termination process.