Employment law in Spain: dismissal, wages and disability

Spanish employment law runs on very short deadlines. The most important one is twenty working days to challenge a dismissal, and it is not extended because you were abroad, because you were ill, or because you were waiting to hear back from the company.

This page covers dismissal, unpaid wages and permanent disability, which are the three employment matters foreign workers in Spain most often bring us.

Dismissal: twenty working days

From the day the dismissal takes effect you have twenty working days to challenge it. Working days exclude Saturdays, Sundays and public holidays, so it is usually about a calendar month, but you should never rely on that.

The clock is stopped by filing a conciliation request, the papeleta de conciliación, which is compulsory before you can sue. Miss the twenty days and the dismissal becomes unchallengeable however unfair it was.

The three outcomes

Finding What it means Compensation
Fair (procedente) The dismissal stands Nothing beyond what was already owed
Unfair (improcedente) No valid ground, or procedural failure 33 days per year worked, capped at 24 months
Void (nulo) Breach of fundamental rights, or protected situations such as pregnancy Reinstatement plus back pay

The 33-day rate comes from article 56 of the Workers’ Statute. For service before 12 February 2012 the older rate of 45 days per year applies, under transitional provision 11 of the Statute, so long service can be worth substantially more than the headline figure suggests.

You can estimate your own figure with our dismissal compensation calculator. It applies both rates and the caps.

Objective dismissal

Where the employer dismisses for economic, technical, organisational or production reasons, compensation is 20 days per year worked, capped at 12 months, and the employer must give written notice and make the payment available at the same time. Failures in that process frequently make the dismissal unfair.

Unpaid wages

A claim for unpaid wages, overtime or unpaid holiday must be brought within one year. Conciliation is again compulsory first.

If the company is insolvent, the FOGASA wage guarantee fund covers part of what is owed, up to statutory limits. That is a separate application with its own deadline, and it is often missed.

Permanent disability

If illness or injury leaves you unable to work, you may be entitled to a permanent disability pension from the social security system. The classification determines the amount:

  • Partial: reduces your capacity in your usual job by at least 33 %. A lump sum of 24 months of the contribution base.
  • Total: prevents you from doing your usual job, but you can do another. 55 % of the base, rising to 75 % from age 55.
  • Absolute: prevents you from doing any work at all. 100 % of the base.
  • Severe disability: absolute, plus you need help with daily living. 100 % plus a supplement.

The initial decision comes from the INSS, and it is refused far more often than granted. You have thirty working days to file a prior claim against the decision, and this is where most cases are actually won or lost. The medical evidence in that claim matters more than anything argued later.

Accidents at work

An accident at work can generate two compatible claims that people often think are alternatives:

  • The social security or mutual insurer benefit, which is paid regardless of fault
  • A civil claim against the employer or a third party where safety obligations were breached

They interact, and how you handle the first affects the second, so they are best coordinated from the start.

Frequently asked questions

I was dismissed by WhatsApp. Is that valid?

A dismissal must be communicated in writing, stating the facts and the date of effect. A message may satisfy the writing requirement in some circumstances, but a dismissal that does not set out the grounds properly is very likely to be unfair. Do not let the argument about form distract you from the twenty-day deadline.

I signed a document when I left. Have I given up my rights?

Not necessarily. A finiquito is a settlement of final amounts owed. Whether it also waives your right to challenge the dismissal depends on its wording and on the circumstances in which you signed it. Bring it to us rather than assuming it is fatal.

I have gone back to my own country. Can I still claim?

Yes. The claim is heard in Spain, but you do not need to be here for most of it. We can act under a power of attorney, and attendance is generally only needed at the hearing, sometimes by video link.

Is my employer allowed to change my hours or my job?

Substantial changes to working conditions require a valid business reason and formal notice, and you have the right to challenge them or, in some cases, to terminate the contract with compensation. The deadline to challenge is again twenty working days.

How much will this cost me?

We quote in writing before we start. In employment matters the first step, conciliation, is administrative and does not require a court agent, which keeps the initial cost down.

Talk to us

If you have been dismissed, the first thing to establish is the date the twenty working days started. Tell us the date and we will tell you the deadline. Contact us here, or call 654 581 493.