5
- 1Spain: An attractive country for investment
- 2Setting up a business in Spain
- 3 Tax System
- 4 Investment aid and incentives in Spain
- 5 Labor and social security regulations
- 6 Intellectual property law
- 7Legal framework and tax implications of e-commerce in Spain
- AI Annex I Company and Commercial Law
- AIIAnnex II The Spanish financial system
- AIIIAnnex IIIAccounting and audit issues

- Introduction
- Contracts
- Material modifications to working conditions
- Termination of employment contracts
- Senior management contracts
- Contracts with temporary employment agencies
- Worker representation and collective bargaining
- Non-employment relationships
- Acquisition of a Spanish business
- Practical aspects to be considered when setting up a company in Spain
- Relocation of workers under a cross-border working arrangement within the EU and the EEA ("IMPATRIATES")
- Visas and work and residence permits
- Social security system
- Equality in the workplace
- Occupational risk prevention
4Termination of employment contracts
4.2 Classification of the dismissal
A worker dismissed on any objective or disciplinary ground may appeal the decision made by the employer before the labor courts, although a conciliation hearing must first be held between the worker and the employer to attempt to reach an agreement. This conciliation hearing is held before an administrative mediation, arbitration and conciliation body.
The dismissal will be classified in one of the three following categories: justified, unjustified or null.
CLASSIFICATION | EVENTS | EFFECTS |
---|---|---|
Justified | Conforming to law. | Disciplinary dismissal: Validation of the dismissal, meaning the worker is not entitled to severance pay. |
Objective dismissal: Payment of 20 days’ salary per year worked, up to a limit of 12 months’ salary. | ||
Unjustified | No legal ground exists for the dismissal or the procedure followed is incorrect. | The employer may choose between:
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Null |
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