What you should know about severance pay in Spain

Severance pay in Spain is an issue of great importance for both employers and employees. It is a fundamental aspect of labor relations and it is necessary to know its details to guarantee fair compensation in the event of termination of an employment contract.

Types of Dismissal in Spain

Severance pay in Spain is governed by the Workers' Statute Law. This law establishes different types of dismissal and, therefore, different amounts of compensation.

Fair dismissal occurs when the worker breaches the employment contract. In this case, the employer is not required to pay compensation. However, the worker has the right to request unemployment benefit.

Unfair dismissal occurs when the employer does not have just cause for the dismissal. In this case, the employer must pay compensation to the worker. This compensation is calculated based on the worker's salary and the time he has been working in the company. The calculation of the compensation is made by multiplying the daily salary by the number of days corresponding to the compensation period. The compensation period is 33 days per year worked with a maximum of 24 monthly payments.

On the other hand, objective dismissal occurs for economic, technical, organizational or production reasons. In this case, the employer must pay compensation to the worker. The amount of compensation is calculated based on the worker's salary and the time he has been working in the company. The calculation of the compensation is made by multiplying the daily salary by the number of days corresponding to the compensation period. The compensation period is 20 days per year worked with a maximum of 12 monthly payments.

In addition, there is the figure of null dismissal, which occurs when the fundamental rights of the worker are violated. In this case, the worker has the right to reinstatement in his job position and to payment of the wages not received from the date of dismissal. In this case, no compensation should be paid.

It is important to note that severance pay is not taxable, as it is considered compensation for the termination of an employment contract.

In conclusion, severance pay in Spain is a fundamental right for workers who have been unfairly or objectively dismissed. The calculation of compensation is based on the worker's salary and the time he has been working in the company. It is important to know the details of the Workers' Statute law in Spain to guarantee fair compensation in the event of termination of a labor contract.

Some important legal advice in case of dismissal

It is always advisable to consult an employment lawyer for legal advice in the event of a dismissal. However, here are some general tips that may be helpful in receiving fair compensation in the event of dismissal:

• Know well the labor rights: it is important to know the labor laws and the rights of the worker in Spain to know what compensation should be received in case of dismissal.
• Review the employment contract: Before signing an employment contract, it is important to read it carefully and understand the terms and conditions of the contract, including details about severance pay.
• Document the layoff: In the event of a layoff, it is important to document the process and collect all relevant information, including the reasons for the layoff, the date it occurred, and how the worker was notified.
• Consult an employment lawyer: If the dismissal is believed to have been unfair, it is important to seek legal advice from an employment lawyer to understand your options and take appropriate action.
• Negotiate with the employer: In some cases, it is possible to negotiate a higher compensation with the employer before taking legal action.

In conclusion, the key to receiving fair compensation in case of dismissal is to have a good understanding of our employment rights and to seek appropriate legal advice in case of doubt. It is also important to thoroughly document the entire process and, if necessary, negotiate with the employer to reach a satisfactory agreement.

Contact the best expert law firm in labor dismissals 

Our expert law firm in labor dismissals can offer you a wide range of services. Our main objective is to help workers defend their labor rights in case of unfair dismissal. Here are some of the services that our expert dismissal law firm can offer you:

1. Legal Advice: Our expert layoff law firm can provide legal advice and guide the worker through the legal process, explaining their employment rights and the options available in their specific situation.
2. Legal Representation: We also take care of representing the worker in the legal process, including filing claims on the worker's behalf and defending their rights in court.
3. Negotiation: In some cases, our law firm may negotiate with the employer on behalf of the worker to obtain fair compensation before taking legal action.
4. Evidence Collection: We help the worker collect all the appropriate evidence and documents to prove that the termination was unfair, which may include witness testimony, emails, recordings, and other types of evidence.
5. Representation in Court: If the case goes to trial, our law firm will represent the worker in court, presenting evidence and arguments and defending their labor rights.

As an expert law firm in Labor Law, we cover all your needs by providing you with a wide range of legal services whose main mission is to help workers defend their labor rights in the event of unfair dismissal. From legal advice to representation in court, our law firm will help you obtain fair compensation and defend your employment rights in Spain.