Understanding Employee Dismissal in Spain
Actions in Case of Dismissal
A worker may claim the dismissal if they are dissatisfied with the decision, and has 20 working days to do so.
Act of Reconciliation
It is a necessary precondition to any proceedings for dismissal before the labor court and by which it attempts to reach a settlement between employer and employee.
Features:
- The demand for conciliation must be filed by the worker at the Unit of Measurement, Arbitration and Conciliation (UMAC).
- The deadline for submission is 20 working days.
- The department calls the parties to conciliation. The result can be:
- An agreement or compromise
- No agreement
- Appearance (trial)
If there is no agreement, the worker must file a complaint with the labor court, providing proof of the result of the conciliation attempt. The court decision could be:
- Dismissal from: The employee is not entitled to compensation.
- Unfair Dismissal: The employer may choose to reinstate the worker or pay the compensation fixed in the sentence for unlawful dismissal. The employee is entitled to payment of wages during the proceedings and will receive compensation of 45 days per year of service, capped at 42 months.
- Dismissal Null: Immediate reinstatement of the employee and payment of the wages they would have received.
Severance Pay (Compensation)
- Completion of Contract or any Work or Service: 8 days per year of service.
- For the Worker Will: Nothing.
- Dismissal for Objective Reasons: 20 days + 12 payments.
- Termination for Shipment: 20 days + 12 payments.
- Extinction for Substantial Modification of Conditions: 20 days + 9 months.
- Breach of Employer: 45 days + 42 months.
- Unfair Dismissal (Substantial Change in Working Conditions): 45 days + 42 months.
Case Study 1: Dismissal for Objective Reasons
A worker is fired by his company, which claims intermittent and unjustified absences from work.
A) What type of redundancy is this?
Objective reasons.
B) Describe the procedure to be followed by the company to effect the dismissal.
It must be in writing and no later than 30 days. During these days, the employee is entitled to 6 hours paid weekly to find a new job.
C) Calculate the compensation that would accrue if the employee has seniority in the company of 4 years and received the following compensation:
- SB (Base Salary): 2,558
- PLUS LINK: 42
- 2 pp. EE (Extra Payments): 2,590
- Salary: SB + PLUS = 2,600 // Daily wage = 2,600 / 30 = 86.67
- PP.EE = (2 extra payments per year) = (2,600 x 2) / 360 = 14.44
- Daily Salary (including extra payments) = 86.66 + 14.44 = 101.11
- TOTAL = 20 days * 101.11 * 4 years = 8,088.8 owed
D) The employee does not comply with the dismissal and decides to claim it. Describe the procedure to follow:
Claim within 20 working days. Before going to the labor court, there is a process of mediation, arbitration, and conciliation with the employer.
E) The judge declared the dismissal unfair. Calculate the compensation recoverable.
45 days * 101.11 * 4 = 18,199.8
Case Study 2: Temporary Contract Worker
Temporary contract worker for production circumstances. Duration of the contract: 9 months. End date: 30-APRIL-2010. Compensation:
- SB: 2,030
- PLUS LANGUAGE: 61
- 2 PP.EE: 2,030 each
- HH.EE (Extra Hours): 138
The worker has not yet enjoyed their holidays, for which they receive a full month’s pay.
Calculations:
- April Salary: SB + PLUS + HHEE = 2,229
- Vacation Pay:
- 12 months ——– 2,030 + 61
- 4 months ——– 697
- Extra Payments (Prorated):
- 6 months ——— 1 PPEE (2,030)
- 4 months ——— 1,353.33
- Severance Pay: 8 days per year of service
- Daily wage: (2,030 + 61) / 30 = 69.7
- Prorated Extra Payments = (2 * 2,030) / 360 = 11.27
- 8 * (69.7 + 11.27) = 647.76
- 12 months ———– 647.76
- 9 months ————- 485.82
TOTAL: 2,229 + 697 + 1,353.33 + 485.82 = 4,765.15