IELA News

Unfair dismissal consequences in Spain

13 January, 2021

In Spain, more than seventy per cent of dismissal cases are considered “unfair”. What are the consequences for unfair dismissal in Spain, for companies and employees?

Well, if the dismissal is qualified as unfair by the courts, the employer, has five days after the verdict to choose between reinstating the employee, or paying a severance equal to thirty-three days of salary, per worked year.  Periods of time less than a year will be prorated as months, with a maximum of twenty-four monthly pays. If the dismissed employee is a legal representative of the employees or a trade union representative, the choice will always correspond to him. If he does not choose between reinstatement and compensation, it is understood that he chooses reinstatement, with the right to receive back-pay for time missed from work.