Labour Lawyers Marbella

A dismissal is classified as unfair (despido improcedente) when the employer terminates the contract citing disciplinary or objective grounds without meeting the legal requirements — for example, by failing to prove the alleged cause or by ignoring formal obligations. When a court declares the dismissal unfair, the employee is entitled to compensation of 45 days of salary per year worked (for periods up to February 2012) and 33 days per year worked thereafter. Alternatively, the employer may opt to reinstate the employee and pay all salaries owed during the period of unfair dismissal.

An objective dismissal (despido objetivo) is allowed when there are duly proven economic, organisational, productive or technical reasons, when the employee cannot adapt to required technical modifications, or in the case of justified but intermittent absences. The employer must clearly document and justify the cause — a generic or vague reference is not sufficient. When an objective dismissal is valid, the employee is entitled to compensation of 20 days of salary per year worked.

A disciplinary dismissal (despido disciplinario) is based on a serious and proven breach committed by the employee — for example, repeated unjustified absences, insubordination, or breach of contractual good faith. The employer must justify the misconduct in detail in the dismissal letter. When a disciplinary dismissal is upheld as valid, the employee is not entitled to any severance compensation, although the final settlement (finiquito) for outstanding amounts is still due.

A dismissal is declared null and void (despido nulo) when it breaches fundamental formalities — for example, lack of written notice or absence of the alleged cause in the letter — or when it occurs in specially protected circumstances, such as dismissing a pregnant employee, an employee on maternity or paternity leave, or in cases involving discrimination or retaliation. When a court declares the dismissal null and void, the employer is legally obliged to reinstate the employee and pay all salaries due since the dismissal.

The finiquito is the final settlement paid to the employee when the employment contract ends. It includes the salary for the last period worked (last month or proportional days), the accrued and unused holidays, and the proportional part of the extraordinary payments (pagas extraordinarias) due. Depending on the type of termination, it may also include severance compensation (for example, in the case of an objective dismissal), which can be reflected on the finiquito itself or on a separate document.

The legal deadline to challenge an unfair or null and void dismissal in Spain is 20 working days (Monday to Saturday inclusive; Sundays and public holidays do not count). This is one of the shortest legal deadlines in Spanish law, and missing it usually means losing the right to claim, regardless of how strong the case is. Anyone who receives a dismissal letter should seek immediate legal advice.

The deadline to file a claim for unpaid salaries in Spain is one year from the date the salary became due. Within this period, the employee can claim outstanding wages, overtime, allowances and any other unpaid concept. If the employer is insolvent or unable to pay, certain amounts may be recovered through FOGASA (Fondo de Garantía Salarial), a public guarantee fund.

Before filing a labour claim in court, Spanish law requires the submission of a conciliation request (papeleta de conciliación) before the labour mediation service. This step is mandatory and aims to encourage an out-of-court settlement. If both parties reach an agreement at the conciliation hearing, the dispute ends there. If no settlement is reached — or if the employer fails to attend — the employee can then file the formal claim before the labour court (Juzgado de lo Social).

Employers planning a dismissal in Spain should obtain legal advice before drafting the dismissal letter, since procedural and content errors are the most common reason dismissals are declared unfair or null. A specialised lawyer reviews the cause, drafts the letter in compliance with legal formalities, calculates the corresponding severance or settlement (finiquito), and prepares the documentation needed to defend the company in case the employee challenges the dismissal at conciliation or before the labour court.

Applying a disciplinary sanction in Spain requires strict compliance with the procedure set out in the Workers’ Statute (Estatuto de los Trabajadores) and the applicable collective bargaining agreement (convenio colectivo). The sanction must be proportionate to the infringement, properly documented and communicated in writing. A labour lawyer prepares the notification letter, ensures the infringement falls within a sanctionable category, and helps the company avoid the most common pitfalls that lead to a sanction being annulled.

Yes. Settlement negotiations (acuerdos extrajudiciales) are common in Spanish labour practice and often result in faster, more predictable outcomes than litigation. A well-drafted settlement agreement clearly defines the compensation, waivers and obligations of both parties, prevents future claims and reduces reputational and financial exposure for the company. Our team negotiates and drafts these agreements regularly, both as a preventive measure and as a resolution tool at the conciliation hearing.