Learn about employee termination in Spain thanks to Horizons’ up-to-date guide.
Horizons is where real, local hiring expertise meets world-class customer service. Quickly and compliantly hire employees in more than 150 countries worldwide, without the need to open a local entity.
There are specific situations that qualify as valid reasons for termination.
There are also a number of situations classed as ‘extraordinary’ reasons for dismissal. These can be divided into two categories: reasons relating to the employee, and reasons relating to the employer.
1. Reasons relating to the employer:
2. Reasons relating to the employee:
In Spain, any dismissals, outside of probation period, that don’t have a valid reason (detailed above) is classed as unfair dismissal.
When dismissing an employee in Spain (outside of their probation period), employers must provide written notice. This can be sent by email or via standard mail and you must receive receipt confirmation. You must also pay all applicable compensation at the time you issue written notice.
Employees must provide written notice of their resignation. As mentioned in the notice period section, an employee must give a minimum 15 calendar days’ notice when resigning.
Spain is not offer at-will termination options to employers. If an employer needs to terminate an employee, there must be legal grounds for the termination.
In cases of unfair dismissal in Spain, the severance payment increases by more than 30% to 33 days of pay per year of service by the employee, and the employee can formally request to be rehired.
If you must terminate employment in Spain, it is recommended that you have grounds for termination. In cases of unfair dismissal, the severance payment is higher, and the dismissed employee can petition to be rehired.
In case where an employer wants to terminate a protected class of employee (e.g. pregnant employees, employees on parental leave, and those who have taken parental leave within the last year), it is nearly impossible to do so.
You can mitigate termination risks by partnering with a firm like Horizons, who has employment experts on the ground in Spain and can advise you on best practices in cases of employment termination.
Your business can easily hire employees in Spain without opening a local entity.
We handle local employment law, complex tax regulations, and international payroll in 150+ countries worldwide. All you need to do is focus on your business.
Success stories from businesses we’ve helped enter and grow in new markets.