Dismissal of Spanish EmployeesUpdated on Monday 18th April 2016
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The Spanish labor legislation contains the main regulations related to the dismissal of employees and the main rules must be known by every employer registered in Spain, no matter if the shareholders are foreign citizens or not. A special attention must be paid at the dismissal of employees, because it should respect the legal rules, otherwise the employee can sue the employer and ask for compensations that can be pretty large.
Types of dismissal in Spain
An employment contract can be terminated by dismissal that is an unilateral decision and it can be individual (for one employee) and collective (for more employees). The latter category is more difficult to apply than the first because there are certain conditions to be met.
Firstly, before a collective dismissal, the legal representative of a company must verify if there are good reasons for acting this way and that means if there are economic, organizational, technical or production reasons for doing so. The collective dismissal is a method to relaunch a business that has difficult economic problems and the activity cannot be continued, if there is no change in the number of the employees.
A dismissal is collective when certain conditions are met:
- if minimum 10 employees of the total number of maximum 100 (from the same company) are to be dismissed;
- if at least 10% of the employees (in a company where between 100 and 300 employees work) are to be fired;
- when the owners of a company having over 300 employees are going to fire minimum 30% of the workers or maximum 100%.
Before dismissing the employees, the representatives of a company must begin an administrative procedure and the labor authorities will verify if there are good reasons for a collective dismissal or the problems of the company can be solved other way. If the conclusion is to dismiss the employees, they should receive an indemnity that is regulated by the law and it can’t be less than the wage for 20 days per every year of service and it can’t be more than 12 monthly wages.
The employee who is not satisfied by the way he was dismissed can file an appeal against the employer’s decision. If you need more details about how a dismissal can be appealed in justice and other information about the dismissal of employees, you may contact our law firm in Spain. Our local lawyers provide a wide range of legal services for foreign investors who are interested in doing business in Spain.