- 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
- 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
4. Termination of employment contracts
An employment contract may be terminated for a number of reasons which normally do not give rise to any dispute, such as mutual agreement, expiration of the contractual term, death or retirement of the employee or of the employer, and so on.
In the event of termination by the employer, there are three main grounds for dismissal of an employee:
- Collective layoff.
- Objective grounds.
- Disciplinary action.
The following table summarizes the grounds and main features of the various types of dismissal:
Economic, technical, organizational or production-related grounds, whenever these affect, in a 90-day period, at least:
According to the interpretation made by the Supreme Court, following the doctrine of the Court of Justice of the Europe Union, the above thresholds refer to the company as a whole and to each work center with more than 20 employees.
Definition of legal grounds:
|Disciplinary action||Serious and culpable breach by the worker:||
In addition to the indicated forms of termination, collective agreements can establish clauses that make it possible to terminate the work contract when the employees reaches the ordinary retirement age and has the right to access 100% of the ordinary pension in its contributory form, as long as that the measure is linked to coherent objectives of employment policy provided for in the collective agreement.