Q. What are the legal grounds for dismissing an employee in Spain?
Employees may be dismissed for economic reasons, organizational or technical changes, or disciplinary reasons such as misconduct. Employers must justify the dismissal and provide supporting documentation, otherwise the dismissal may be considered unfair.
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Q. How much severance is an employee entitled to if dismissed in Spain?
Employees dismissed for objective reasons are entitled to 20 days’ salary per year worked, capped at 12 months’ salary. Disciplinary dismissals do not require severance unless ruled unjustified.
Q. Can an employee be dismissed for poor performance in Spain?
Yes, but the employer must provide clear evidence of underperformance and show that expectations were communicated. Employees are typically given an opportunity to improve before dismissal.
Q. What are the consequences of dismissing an employee unfairly in Spain?
Unfair dismissal may result in reinstatement or higher severance pay of up to 33 days’ salary per year worked. Employers may also face legal and financial penalties.
Q. Can an employee be fired during their trial period in Spain?
Yes, during the trial period either party may terminate the contract without stating a reason. If employment continues beyond the trial period, the contract becomes permanent.
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Q. What is the process for collective dismissals in Spain?
Collective dismissals require a consultation process with employee representatives. Employers must justify the decision with economic or organizational reasons and notify labor authorities.
Q. How should an employer handle layoffs during financial difficulties in Spain?
Employers must demonstrate genuine financial or operational difficulties, engage in consultations, provide documentation, and offer statutory severance to affected employees.
Q. What happens if an employer doesn’t follow the correct dismissal procedure in Spain?
Failure to follow proper procedures can result in the dismissal being deemed unfair, requiring reinstatement or severance pay and potentially leading to fines.
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Q. How do I terminate a senior executive contract in Spain?
Senior executive contracts usually require three months’ notice or severance, depending on the contract terms. These agreements allow more flexibility but must follow contractual obligations.
Q. Is it necessary to provide a reason for dismissal in Spain?
In most cases, yes. Employers must provide a justified and documented reason, except during the trial period or where the contract allows termination without cause.
Q. Can an employee appeal their dismissal in Spain?
Yes, employees may challenge their dismissal in labor courts. If successful, the employer may be ordered to reinstate the employee or pay increased severance.
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Q. What types of dismissals are considered illegal in Spain?
Dismissals based on discrimination, pregnancy, parental leave, union activity, or whistleblowing are illegal and automatically void.
Q. Can I offer a severance package in lieu of notice in Spain?
Yes, employers may offer severance instead of notice, provided it equals the employee’s salary for the notice period and complies with legal requirements.
