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Unfair Dismissal in Spain: Severance Pay, Deadlines and Next Steps

Silvia Santaulària Bachmann16 September 20266 min read

Unfair Dismissal in Spain

A dismissal in Spain is not automatically valid. The Spanish Workers' Statute distinguishes between procedente (fair), improcedente (unfair) and nulo (null) dismissals. The classification determines your economic and procedural rights.

What is "despido improcedente"?

A dismissal is unfair when the employer fails to justify the cause adequately or breaches formal requirements. The court then rules the dismissal unlawful.

Severance: what are you entitled to?

For indefinite contracts found unfair, severance is 33 days' wages per year of service, capped at 24 months' pay. The employer may instead choose to reinstate the worker. For a null dismissal (e.g. pregnancy, union activity or discrimination), reinstatement is mandatory, plus back-pay (salarios de tramitación).

Note: for seniority before 12 February 2012, different rates (45 days/year) may apply. The exact calculation depends on the individual case.

The 20-day deadline — act immediately

The claim must be filed within 20 working days of receiving the dismissal letter. This deadline is absolute — once it passes, the claim is time-barred.

The procedure: mandatory conciliation

Before court, a mandatory conciliation (conciliación previa) before the SMAC is required. Many cases settle there. If not, I file the claim before the competent Labour Court (Juzgado de lo Social).

How I help

I review your dismissal, calculate the correct severance, accompany you to the conciliation and represent you in court — in Mallorca, Ibiza, Menorca and Barcelona.

This article is general information and does not replace individual legal advice. Contact me for a free initial assessment.

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About the Author

Silvia Santaulària Bachmann

Registered Lawyer (Colegiada nº 6193 – ICAIB)

Specialized in Fraud, Criminal Law, Debt Collection and Inheritance Law for Germans

Mallorca, Ibiza, Barcelona
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