Spanish Employment Law: Contract Termination & Key Aspects

Spanish Employment Law

Contract Termination

Termination of Contract

There are several reasons for the termination of an employment contract. Besides death and mutual agreement, termination is typically initiated by either the employer or the employee. Legal rules exist to protect workers from unjustified dismissal.

Disciplinary Dismissal

Disciplinary dismissal is the most severe sanction an employer can impose for serious employee misconduct. This includes:

1. Very serious breach of contract, fundamentally violating the employer's rights.
2. Intentional or negligent, unjustified breach of contract.

Employee-Initiated Termination

In justified employee-initiated termination (constructive dismissal), the employee must file a lawsuit with a labor court, explaining the reasons for termination. If successful, they may be entitled to severance pay equivalent to unfair dismissal or unemployment benefits. Constructive dismissal requires serious employer non-performance.

Key Aspects of Employment Contracts

Minimum Mandatory Law

These laws establish minimum favorable employment conditions for workers. Collective Bargaining Agreements (CBAs) may offer better conditions.

Trial Period

During the trial period, the employer can terminate the contract without cause. The employee can also leave without providing reasons.

Fixed Periodic Contract

This is a part-time, indefinite-term contract for performing fixed and periodic tasks within the company's regular activity.

Fixed-Discontinuous Contract

This is an indefinite-term agreement for intermittent jobs that don't recur on specific dates within the company's regular activity.

Extra Pays

There are three types of extra pays:

1. Bonus depending on the worker's conditions: E.g., seniority, skills, or education.
2. Bonus depending on work done:
   1. Related to work characteristics, e.g., night shifts.
   2. Related to work amount/quality, incentivizing productivity.
3. Bonus depending on the company's situation and profit/loss: Involving workers in the business's success. Consolidated bonuses become permanent.

Null Dismissal

If an employee disagrees with a dismissal, they can sue the company. If the dismissal involves discrimination or violates fundamental rights, it is considered null and void.