How is severance pay calculated in Spain?

Objective dismissal: 20 days' salary per year of service. If a disciplinary dismissal is declared unfair: 33 days per year, capped at 24 months' salary. The exact amount depends on seniority and salary.

Is severance required when dismissing during the probationary period?

No severance is required during an agreed probation period, unless the dismissal is for discriminatory reasons (pregnancy, trade union activity, etc.), which makes it null and void.

Can an employee challenge their dismissal?

Yes. They must file a conciliation claim before the SMAC within 20 working days of the dismissal notice before bringing an action before the Employment Tribunal.

What is needed to hire a non-EU foreign employee?

The employer must generally apply for the employee's work authorisation in advance. EU citizens only need to register with the relevant authority.

Employment Law

Employment law support for employers and employees: contracts, payroll compliance, HR management, redundancy procedures and labour dispute resolution.

Who Is This For?

SMEs and multinationals employing workers in Spain
Employees facing dismissal or labour disputes
Business owners needing to regularize employment relationships and internal policies
Companies involved in collective bargaining or union relations
Companies requiring compliance remediation after a labour inspection

What We Cover

Employment contract drafting and review

Salary structure, benefits and social security compliance

Labour relations management and internal policies

Dismissal procedures and severance calculation

Labour dispute mediation, arbitration and litigation

Collective bargaining and union relations

Labour inspection management and compliance remediation

Work permits and social security for foreign employees

Frequently Asked Questions