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Practical guide on Objective Dismissal in Spain

Practical guide on Objective Dismissal in Spain

Objective dismissal is one of the forms of termination of the employment contract in Spain. This form of dismissal is regulated in the Workers' Statute and is applied in situations in which the company needs to dismiss a worker for objective reasons, that is, causes beyond the control of the worker, such as economic, technical, organizational or production 

In this practical and extensive guide, I will explain everything you need to know about objective dismissal in Spain, from what are the causes that justify it to the procedures that both the company and the worker must follow.

Causes of objective dismissal

The objective dismissal is justified by objective causes, which are included in article 52 of the Workers' Statute. These causes are the following:

  • Economic causes: when the company is going through a negative economic situation and needs to reduce its workforce in order to survive. It is considered that there are economic causes when there are current or expected losses, a persistent decrease in income or sales, a crisis situation in the sector, etc.
  • Technical causes: when there are changes in the means of production, such as the implementation of new technologies or changes in machinery, which make it necessary to do without some workers.
  • Organizational causes: when there are changes in the way of working, such as a reorganization of services or a merger with another company, which make it necessary to readjust the workforce.
  • Causes of production: when there are changes in the demand for the products or services offered by the company, which make it necessary to reduce the workforce.

Procedure for objective dismissal

Objective dismissal must follow a specific procedure that is included in article 53 of the Workers' Statute in Spain.

This procedure is as follows:

  • The company must notify the worker of its intention to dismiss him for objective reasons. This communication must be made in writing and must include the reasons for the dismissal and the effective date.
  • The worker has the right to receive compensation of 20 days per year worked, with a maximum of 12 monthly payments. This compensation is mandatory and cannot be replaced by another measure, such as the relocation of the worker to another job.
  • The worker has the right to a notice of 15 days. This means that the company must notify the worker of its intention to dismiss him 15 days in advance of the date on which the dismissal will take effect.
  • The worker has the right to know the causes of dismissal and to receive a dismissal letter specifying these causes.
  • The worker has the right to challenge the dismissal in court. If you believe that the dismissal is not justified for objective reasons or that the procedure has not been followed correctly, you can file a claim in court within 20 working days from the date the dismissal became effective.

Consequences of objective dismissal

Objective dismissal has several consequences for both the worker and the company. The most relevant are detailed below:

FOR THE WORKER:

  • Loss of employment: the most obvious consequence for the worker is the loss of employment. The objective dismissal supposes the termination of the employment contract unilaterally by the company. Right to compensation: as mentioned above, the worker has the right to receive compensation in the event of objective dismissal. This pension is 20 days per year worked with a maximum of 12 monthly payments.
  • Access to unemployment benefits: having lost their job, the worker has the right to request unemployment benefits from the Public State Employment Service (SEPE) to cover their economic needs while looking for a new job.
  • Possibility of challenging the dismissal: the worker has the right to challenge the objective dismissal if he considers that the legal formalities have not been complied with or that the causes of the dismissal are not objective, so it is recommended that the worker seek advice from an expert lawyer employment law as soon as possible.

    FOR THE COMPANY:

Economic cost: the objective dismissal implies for the company the payment of the compensation corresponding to the dismissed worker, which supposes a significant economic cost.

  • Possibility of lawsuit: if the company has not followed the procedure established by law or has not correctly justified the causes of the objective dismissal, the worker can file a lawsuit and claim reinstatement or greater compensation.
  • Loss of talent: in the event that the dismissed worker is a highly qualified professional, the company may lose talent and knowledge that may be valuable for its activity.
  • Impact on the corporate image: an objective dismissal can have a negative impact on the corporate image of the company, both internally and externally. It can affect the morale of workers and generate a bad perception on the part of customers and society in general.
In summary, objective dismissal has significant consequences for both the worker and the company, and it is a measure that must be taken with caution and always checking with current labor regulations.

Difference between dismissal and objective dismissal

Dismissal and objective dismissal are two forms of termination of an employment contract in Spain, but they present some important differences: 

  • Cause of dismissal: In a dismissal, the company can dispense with the worker without the need to justify a specific cause. However, in an objective dismissal, the company is obliged to justify the objective causes that motivate the termination of the contract. These causes must be contemplated in the law and be verifiable.
  • Compensation: In a dismissal, the worker is entitled to compensation for unfair dismissal, which is established based on the worker's seniority in the company. On the other hand, in objective dismissal, the worker is entitled to compensation for the termination of the contract, which is 20 days per year worked with a maximum of 12 monthly payments.
  • Procedure: To carry out a dismissal, the company must comply with the procedures established by law, depending on the cause of the dismissal. On the other hand, the objective dismissal has a specific procedure that must be followed to guarantee the legality of the measure.
  • Reinstatement: In the event that a worker is unfairly dismissed, they can request their reinstatement in the company or greater compensation. In the case of objective dismissal, the worker can challenge the dismissal if he considers that the legal formalities have not been complied with or that the reasons for the dismissal are not objective.
As the layoff lawyers from Forcam Lawyers explain, the main difference between dismissal and objective dismissal is that in the second case the company is obliged to justify the objective causes that motivate the termination of the contract, while in the dismissal there's no need. In addition, the compensation and procedures for each case are different.