ILO is a specialized agency of the United Nations
ILO-en-strap
Go to the home page
Site map | Contact us français | español
> GOVERNANCE - home > Employment protection legislation database - EPLex > Spain

Spain - Severance pay and redundancy payment


+ show references

Severance pay:
Remarks:
  • - In the event of dismissal for an objective reason (i.e economic reasons, worker's capacity - see valid grounds), at the time the written notice of dismissal is delivered to the worker, severance pay shall be simultaneously made available to the worker. Severance pay amounts to 20 days' wages per year of service with a maximum of 12 months' wages (art. 53(1) ET).
    - A worker who is dismissed for disciplinary reasons is not entitled to severance pay.

    Before 2012, if the employer acknowledged that the disciplinary dismissal was unfair, the employment contract would be deemed terminated at the date of dismissal if the employer deposits in advance to the Labour Court at the disposal of the employee the statutory compensation for unfair dismissal which amounts to 45 days' wages for each year of service up to a maximum of 42 months' wages (former art. 56(2) ET). This provision was repealed by Royal Decree Law 3/2012. Now, when a dismissal is declared unfair by the Court, the statutory compensation amounts to 33 days’ wages for each year of service up to a maximum of 24 months’ wages (current art. 56(1) ET).

    - According to art. 49(1)c) ET, upon termination of a fixed term contract by expiry of the term or completion of the work, the worker is entitled to a severance payment.
    This does not, however, apply to termination of a contract concluded for training purposes or to replace employees temporarily absent from work (art. 49(1)c) ET).

    As a result of Royal Decree Law 16/2010, the amount of fixed-term contract termination indemnity, which was previously 8 days for each of service, is now 12 days per year of service (art. 49(1)c) ET).
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)
Redundancy payment:
Remarks:
  • In the event of dismissal for economic reasons (individual or collective), the employees are entitled to redundancy payment in an amount equivalent to 20 days' wages per year of service up to a maximum of 12 months' wages (for periods of less than a year, this is calculated in proportion to the period of service). See arts. 51(4) and 53(1) ET.
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)

Notes / Remarks
1) Dismissal for an objective reason (including individual and collective dismissals for economic reasons): severance pay = 20 days' wages per year of service up to a maximum of 12 month's wages.
2) Disciplinary dismissal: no severance pay.
3) Termination of a fixed-term contract (which is not concluded for training or substitution purposes): 12 days' wages per year of service.

+ show references

Severance pay:
Remarks:
  • - In the event of dismissal for an objective reason (i.e economic reasons, worker's capacity - see valid grounds), at the time the written notice of dismissal is delivered to the worker, severance pay shall be simultaneously made available to the worker. Severance pay amounts to 20 days' wages per year of service with a maximum of 12 months' wages (art. 53(1) ET).
    - A worker who is dismissed for disciplinary reasons is not entitled to severance pay.

    Before 2012, if the employer acknowledged that the disciplinary dismissal was unfair, the employment contract would be deemed terminated at the date of dismissal if the employer deposits in advance to the Labour Court at the disposal of the employee the statutory compensation for unfair dismissal which amounts to 45 days' wages for each year of service up to a maximum of 42 months' wages (former art. 56(2) ET). This provision was repealed by Royal Decree Law 3/2012. Now, when a dismissal is declared unfair by the Court, the statutory compensation amounts to 33 days’ wages for each year of service up to a maximum of 24 months’ wages (current art. 56(1) ET).

    - According to art. 49(1)c) ET, upon termination of a fixed term contract by expiry of the term or completion of the work, the worker is entitled to a severance payment.
    This does not, however, apply to termination of a contract concluded for training purposes or to replace employees temporarily absent from work (art. 49(1)c) ET).

    As a result of Royal Decree Law 16/2010, the amount of fixed-term contract termination indemnity, which was previously 8 days for each of service, is now 12 days per year of service (art. 49(1)c) ET).
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)
Redundancy payment:
Remarks:
  • In the event of dismissal for economic reasons (individual or collective), the employees are entitled to redundancy payment in an amount equivalent to 20 days' wages per year of service up to a maximum of 12 months' wages (for periods of less than a year, this is calculated in proportion to the period of service). See arts. 51(4) and 53(1) ET.
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)

Notes / Remarks
1) Dismissal for an objective reason (including individual and collective dismissals for economic reasons): severance pay = 20 days' wages per year of service up to a maximum of 12 month's wages.
2) Disciplinary dismissal: no severance pay.
3) Termination of a fixed-term contract (which is not concluded for training or substitution purposes): 12 days' wages per year of service.

+ show references

Severance pay:
Remarks:
  • - In the event of dismissal for an objective reason (i.e economic reasons, worker's capacity - see valid grounds), at the time the written notice of dismissal is delivered to the worker, severance pay shall be simultaneously made available to the worker. Severance pay amounts to 20 days' wages per year of service with a maximum of 12 months' wages (art. 53(1) ET).
    - A worker who is dismissed for disciplinary reasons is not entitled to severance pay.

    Before 2012, if the employer acknowledged that the disciplinary dismissal was unfair, the employment contract would be deemed terminated at the date of dismissal if the employer deposits in advance to the Labour Court at the disposal of the employee the statutory compensation for unfair dismissal which amounts to 45 days' wages for each year of service up to a maximum of 42 months' wages (former art. 56(2) ET). This provision was repealed by Royal Decree Law 3/2012. Now, when a dismissal is declared unfair by the Court, the statutory compensation amounts to 33 days’ wages for each year of service up to a maximum of 24 months’ wages (current art. 56(1) ET).

    - According to art. 49(1)c) ET, upon termination of a fixed term contract by expiry of the term or completion of the work, the worker is entitled to a severance payment.
    This does not, however, apply to termination of a contract concluded for training purposes or to replace employees temporarily absent from work (art. 49(1)c) ET).

    As a result of Royal Decree Law 16/2010, the amount of fixed-term contract termination indemnity, which was previously 8 days for each of service, is now 12 days per year of service (art. 49(1)c) ET).
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)
Redundancy payment:
Remarks:
  • In the event of dismissal for economic reasons (individual or collective), the employees are entitled to redundancy payment in an amount equivalent to 20 days' wages per year of service up to a maximum of 12 months' wages (for periods of less than a year, this is calculated in proportion to the period of service). See arts. 51(4) and 53(1) ET.
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)

Notes / Remarks
1) Dismissal for an objective reason (including individual and collective dismissals for economic reasons): severance pay = 20 days' wages per year of service up to a maximum of 12 month's wages.
2) Disciplinary dismissal: no severance pay.
3) Termination of a fixed-term contract (which is not concluded for training or substitution purposes): 12 days' wages per year of service.

+ show references

Severance pay:
NOTE: This information has changed since the previous period covered.
Remarks:
  • - In the event of dismissal for an objective reason (i.e economic reasons, worker's capacity - see valid grounds), at the time the written notice of dismissal is delivered to the worker, severance pay shall be simultaneously made available to the worker. Severance pay amounts to 20 days' wages per year of service with a maximum of 12 months' wages (art. 53(1) ET).
    - A worker who is dismissed for disciplinary reasons is not entitled to severance pay.

    Before 2012, if the employer acknowledged that the disciplinary dismissal was unfair, the employment contract would be deemed terminated at the date of dismissal if the employer deposits in advance to the Labour Court at the disposal of the employee the statutory compensation for unfair dismissal which amounts to 45 days' wages for each year of service up to a maximum of 42 months' wages (former art. 56(2) ET). This provision was repealed by Royal Decree Law 3/2012. Now, when a dismissal is declared unfair by the Court, the statutory compensation amounts to 33 days’ wages for each year of service up to a maximum of 24 months’ wages (current art. 56(1) ET).

    - According to art. 49(1)c) ET, upon termination of a fixed term contract by expiry of the term or completion of the work, the worker is entitled to a severance payment.
    This does not, however, apply to termination of a contract concluded for training purposes or to replace employees temporarily absent from work (art. 49(1)c) ET).

    As a result of Royal Decree Law 16/2010, the amount of fixed-term contract termination indemnity, which was previously 8 days for each of service, is now 12 days per year of service (art. 49(1)c) ET).
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)
Redundancy payment:
Remarks:
  • In the event of dismissal for economic reasons (individual or collective), the employees are entitled to redundancy payment in an amount equivalent to 20 days' wages per year of service up to a maximum of 12 months' wages (for periods of less than a year, this is calculated in proportion to the period of service). See arts. 51(4) and 53(1) ET.
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)

Notes / Remarks
1) Dismissal for an objective reason (including individual and collective dismissals for economic reasons): severance pay = 20 days' wages per year of service up to a maximum of 12 month's wages.
2) Disciplinary dismissal: no severance pay.
3) Termination of a fixed-term contract (which is not concluded for training or substitution purposes): 12 days' wages per year of service.

+ show references

Severance pay:
Remarks:
  • - In the event of dismissal for an objective reason (i.e economic reasons, worker's capacity - see valid grounds), at the time the written notice of dismissal is delivered to the worker, severance pay shall be simultaneously made available to the worker. Severance pay amounts to 20 days' wages per year of service with a maximum of 12 months' wages (art. 53(1) ET).
    - A worker who is dismissed for disciplinary reasons is not entitled to severance pay.

    Before 2012, if the employer acknowledged that the disciplinary dismissal was unfair, the employment contract would be deemed terminated at the date of dismissal if the employer deposits in advance to the Labour Court at the disposal of the employee the statutory compensation for unfair dismissal which amounts to 45 days' wages for each year of service up to a maximum of 42 months' wages (former art. 56(2) ET). This provision was repealed by Royal Decree Law 3/2012. Now, when a dismissal is declared unfair by the Court, the statutory compensation amounts to 33 days’ wages for each year of service up to a maximum of 24 months’ wages (current art. 56(1) ET).

    - According to art. 49(1)c) ET, upon termination of a fixed term contract by expiry of the term or completion of the work, the worker is entitled to a severance payment.
    This does not, however, apply to termination of a contract concluded for training purposes or to replace employees temporarily absent from work (art. 49(1)c) ET).

    As from Royal Decree Law 16/2010), the amount of fixed-term contract termination indemnity, which was previously 8 days for each of service, is now gradually being increased to 12 days per year of service (art. 49(1)c) ET).
    The increase of the contract termination indemnity is to be implemented gradually on a yearly basis from 8 days' wages to 12 days' wages in 2015, as follows:

    - 8 days' wages for contracts concluded through December 31st, 2011;
    - 9 days' wages for contracts concluded through January 1st, 2012,
    - 10 days' wages for contracts concluded through January 1st, 2013,
    - 11 days' wages for contracts concluded through January 1st, 2014,
    - 12 days' wages for contracts concluded through January 1st, 2015.
    (See Transitory provision 13 of the ET)
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)
Redundancy payment:
Remarks:
  • In the event of dismissal for economic reasons (individual or collective), the employees are entitled to redundancy payment in an amount equivalent to 20 days' wages per year of service up to a maximum of 12 months' wages (for periods of less than a year, this is calculated in proportion to the period of service). See arts. 51(4) and 53(1) ET.
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)

Notes / Remarks
1) Dismissal for an objective reason (including individual and collective dismissals for economic reasons): severance pay = 20 days' wages per year of service up to a maximum of 12 month's wages.
2) Disciplinary dismissal: no severance pay.
3) Termination of a fixed-term contract (which is not concluded for training or substitution purposes): 12 days' wages per year of service.

+ show references

Severance pay:
Remarks:
  • - In the event of dismissal for an objective reason (i.e economic reasons, worker's capacity - see valid grounds), at the time the written notice of dismissal is delivered to the worker, severance pay shall be simultaneously made available to the worker. Severance pay amounts to 20 days' wages per year of service with a maximum of 12 months' wages (art. 53(1) ET).
    - A worker who is dismissed for disciplinary reasons is not entitled to severance pay.

    Before 2012, if the employer acknowledged that the disciplinary dismissal was unfair, the employment contract would be deemed terminated at the date of dismissal if the employer deposits in advance to the Labour Court at the disposal of the employee the statutory compensation for unfair dismissal which amounts to 45 days' wages for each year of service up to a maximum of 42 months' wages (former art. 56(2) ET). This provision was repealed by Royal Decree Law 3/2012. Now, when a dismissal is declared unfair by the Court, the statutory compensation amounts to 33 days’ wages for each year of service up to a maximum of 24 months’ wages (current art. 56(1) ET).

    - According to art. 49(1)c) ET, upon termination of a fixed term contract by expiry of the term or completion of the work, the worker is entitled to a severance payment.
    This does not, however, apply to termination of a contract concluded for training purposes or to replace employees temporarily absent from work (art. 49(1)c) ET).

    As from Royal Decree Law 16/2010), the amount of fixed-term contract termination indemnity, which was previously 8 days for each of service, is now gradually being increased to 12 days per year of service (art. 49(1)c) ET).
    The increase of the contract termination indemnity is to be implemented gradually on a yearly basis from 8 days' wages to 12 days' wages in 2015, as follows:

    - 8 days' wages for contracts concluded through December 31st, 2011;
    - 9 days' wages for contracts concluded through January 1st, 2012,
    - 10 days' wages for contracts concluded through January 1st, 2013,
    - 11 days' wages for contracts concluded through January 1st, 2014,
    - 12 days' wages for contracts concluded through January 1st, 2015.
    (See Transitory provision 13 of the ET)
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)
Redundancy payment:
NOTE: This information has changed since the previous period covered.
Remarks:
  • In the event of dismissal for economic reasons (individual or collective), the employees are entitled to redundancy payment in an amount equivalent to 20 days' wages per year of service up to a maximum of 12 months' wages (for periods of less than a year, this is calculated in proportion to the period of service). See arts. 51(4) and 53(1) ET.

    New in 2014 : In undertakings employing fewer than 25 workers, the Wage Guarantee Fund had to pay 40% of the redundancy payment (for individual and collective economic dismissals), pursuant to art. 33(8) ET. This provision is no longer in force with effect from January 2014 (law 22/2013).
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)

Notes / Remarks
1) Dismissal for an objective reason (including individual and collective dismissals for economic reasons): severance pay = 20 days' wages per year of service up to a maximum of 12 month's wages.
2) Disciplinary dismissal: no severance pay.
3) Termination of a fixed-term contract (which is not concluded for training or substitution purposes): 12 days' wages per year of service.

+ show references

Severance pay:
Remarks:
  • - In the event of dismissal for an objective reason (i.e economic reasons, worker's capacity - see valid grounds), at the time the written notice of dismissal is delivered to the worker, severance pay shall be simultaneously made available to the worker. Severance pay amounts to 20 days' wages per year of service with a maximum of 12 months' wages (art. 53(1) ET).
    - A worker who is dismissed for disciplinary reasons is not entitled to severance pay.

    Before 2012, if the employer acknowledged that the disciplinary dismissal was unfair, the employment contract would be deemed terminated at the date of dismissal if the employer deposits in advance to the Labour Court at the disposal of the employee the statutory compensation for unfair dismissal which amounts to 45 days' wages for each year of service up to a maximum of 42 months' wages (former art. 56(2) ET). This provision was repealed by Royal Decree Law 3/2012. Now when a dismissal is declared unfair by the Court, the statutory compensation amounts to 33 days’ wages for each year of service up to a maximum of 24 months’ wages (current art. 56(1) ET).

    - According to art. 49(1)c) ET, upon termination of a fixed term contract by expiry of the term or completion of the work, the worker is entitled to a severance payment.
    This does not, however, apply to termination of a contract concluded for training purposes or to replace employees temporarily absent from work (art. 49(1)c) ET).

    As from Royal Decree Law 16/2010), the amount of fixed-term contract termination indemnity, which was previously 8 days for each of service, is now gradually being increased to 12 days per year of service (art. 49(1)c) ET).
    The increase of the contract termination indemnity is to be implemented gradually on a yearly basis from 8 days' wages to 12 days' wages in 2015, as follows:

    - 8 days' wages for contracts concluded through December 31st, 2011;
    - 9 days' wages for contracts concluded through January 1st, 2012,
    - 10 days' wages for contracts concluded through January 1st, 2013,
    - 11 days' wages for contracts concluded through January 1st, 2014,
    - 12 days' wages for contracts concluded through January 1st, 2015.
    (See Transitory provision 13 of the ET)
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)
Redundancy payment:
Remarks:
  • In addition, in the event of collective dismissal for economic reasons, the employees are entitled to redundancy payment in an amount equivalent to severance pay: 20 days' wages per year of service up to a maximum of 12 months' wages (for periods of less than a year, this is calculated in proportion to the period of service). See arts. 51(4) and 53(1) ET.
    In undertakings employing fewer than 25 workers, the Wage Guarantee Fund must pay 40% of the redundancy payment (for individual and collective economic dismissals). See art. 33(8) ET.
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)

Notes / Remarks
1) Dismissal for an objective reason (including individual and collective dismissals for economic reasons): severance pay = 20 days' wages per year of service up to a maximum of 12 month's wages.
2) Disciplinary dismissal: no severance pay.
3) Termination of a fixed-term contract (which is not concluded for training or substitution purposes): 12 days' wages per year of service.

+ show references

Severance pay:
NOTE: This information has changed since the previous period covered.
Remarks:
  • - In the event of dismissal for an objective reason (i.e economic reasons, worker's capacity - see valid grounds), at the time the written notice of dismissal is delivered to the worker, severance pay shall be simultaneously made available to the worker. Severance pay amounts to 20 days' wages per year of service with a maximum of 12 months' wages (art. 53(1) ET).
    - A worker who is dismissed for disciplinary reasons is not entitled to severance pay.

    NEW in 2012 : Before 2012, if the employer acknowledged that the disciplinary dismissal was unfair, the employment contract would be deemed terminated at the date of dismissal if the employer deposits in advance to the Labour Court at the disposal of the employee the statutory compensation for unfair dismissal which amounts to 45 days' wages for each year of service up to a maximum of 42 months' wages (former art. 56(2) ET). This provision was repealed by Royal Decree Law 3/2012. Now when a dismissal is declared unfair by the Court, the statutory compensation amounts to 33 days’ wages for each year of service up to a maximum of 24 months’ wages (current art. 56(1) ET).

    - According to art. 49(1)c) ET, upon termination of a fixed term contract by expiry of the term or completion of the work, the worker is entitled to a severance payment.
    This does not, however, apply to termination of a contract concluded for training purposes or to replace employees temporarily absent from work (art. 49(1)c) ET).

    NEW in 2012 : As from Royal Decree Law 16/2010), the amount of fixed-term contract termination indemnity, which was previously 8 days for each of service, is now gradually being increased to 12 days per year of service (art. 49(1)c) ET).
    The increase of the contract termination indemnity is to be implemented gradually on a yearly basis from 8 days' wages to 12 days' wages in 2015, as follows:

    - 8 days' wages for contracts concluded through December 31st, 2011;
    - 9 days' wages for contracts concluded through January 1st, 2012,
    - 10 days' wages for contracts concluded through January 1st, 2013,
    - 11 days' wages for contracts concluded through January 1st, 2014,
    - 12 days' wages for contracts concluded through January 1st, 2015.
    (See Transitory provision 13 of the ET)
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)
Redundancy payment:
Remarks:
  • In the event of dismissal for economic reasons (collective or individual), the employees are entitled to redundancy payment in an amount equivalent to severance pay: 20 days' wages per year of service up to a maximum of 12 months' wages (for periods of less than a year, this is calculated in proportion to the period of service). See arts. 51(4) and 53(1) ET.
    In undertakings employing fewer than 25 workers, the Wage Guarantee Fund must pay 40% of the redundancy payment (for individual and collective economic dismissals). See art. 33(8) ET.
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)

Notes / Remarks
1) Dismissal for an objective reason (including individual and collective dismissals for economic reasons): severance pay = 20 days' wages per year of service up to a maximum of 12 month's wages.
2) Disciplinary dismissal: no severance pay.
3) NEW in 2012 : Until 2012, if the employer acknowledged that the disciplinary dismissal was unjustified: compensation for unfair dismissal could be paid in advance to the employee in order to avoid trial and payment of back pay. Such compensation amounted to 45 days' wages per year of service up to a maximum of 42 months' wages (see below). This provision has now been repealed by Royal Decree Law 3/2012.
4)Termination of a fixed-term contract (which is not concluded for training or substitution purposes): 12 days' wages per year of service.

+ show references

Severance pay:
NOTE: This information has changed since the previous period covered.
Remarks:
  • - In the event of dismissal for an objective reason (i.e economic reasons, worker's capacity - see valid grounds), at the time the written notice of dismissal is delivered to the worker, severance pay shall be simultaneously made available to the worker. Severance pay amounts to 20 days' wages per year of service with a maximum of 12 months' wages (art. 53(1) ET).
    - A worker who is dismissed for disciplinary reasons is not entitled to severance pay.
    However, it is important to emphasize that in the event the employer acknowledges that the disciplinary dismissal is unfair, the employment contract will be deemed terminated at the date of dismissal if the employer deposits in advance to the Labour Court at the disposal of the employee the statutory compensation for unfair dismissal which amounts to 45 days' wages for each year of service up to a maximum of 42 months' wages (art. 56(2) ET).
    - According to art. 49(1)c) ET, upon termination of a fixed term contract by expiry of the term or completion of the work, the worker is entitled to a severance payment.
    This does not, however, apply to termination of a contract concluded for training purposes or to replace employees temporarily absent from work (art. 49(1)c) ET).
    NEW: As a result of the labour market reform (Act 35/2010 - measure already provided in RDL 16/2010), the amount of fixed-term contract termination indemnity, which was previously 8 days for each of service, has now been increased to 12 days per year of service (art. 49(1)c) ET).
    The increase of the contract termination indemnity is to be implemented gradually on a yearly basis from 8 days' wages to 12 days' wages in 2015, as follows:
    - 8 days' wages for contracts concluded through December 31st, 2011;
    - 9 days' wages for contracts concluded through January 1st, 2012,
    - 10 days' wages for contracts concluded through January 1st, 2013,
    - 11 days' wages for contracts concluded through January 1st, 2014,
    - 12 days' wages for contracts concluded through January 1st, 2015.
    (See Transitory provision 13 of the ET)
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)
Redundancy payment:
Remarks:
  • In the event of dismissal for economic reasons (collective or individual), the employees are entitled to redundancy payment in an amount equivalent to 20 days' wages per year of service up to a maximum of 12 months' wages (for periods of less than a year, this is calculated in proportion to the period of service). See arts. 51(8) ET and 53(1).
    In undertakings employing fewer than 25 workers, the Wage Guarantee Fund must pay 40% of the redundancy payment (for individual and collective economic dismissals). See art. 33(8) ET.
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)

Notes / Remarks
1) Dismissal for an objective reason (including individual and collective dismissals for economic reasons): severance pay = 20 days' wages per year of service up to a maximum of 12 month's wages.
2) Disciplinary dismissal: no severance pay.
3) If the employer acknowledges that the disciplinary dismissal is unjustified: compensation for unfair dismissal can be paid in advance to the employee in order to avoid trial and payment of back pay. Such compensation amounts to 45 days' wages per year of service up to a maximum of 42 months' wages (see below).
4)Termination of a fixed-term contract (which is not concluded for training or substitution purposes): 12 days' wages per year of service.

+ show references

Severance pay:
Remarks:
  • - In the event of dismissal for an objective reason (i.e economic reasons, worker's capacity - see valid grounds), at the time the written notice of dismissal is delivered to the worker, severance pay shall be simultaneously made available to the worker. Severance pay amounts to 20 days' wages per year of service with a maximum of 12 months' wages (art. 53(1) ET).
    - A worker who is dismissed for disciplinary reasons is not entitled to severance pay.
    However, it is important to emphasize that in the event the employer acknowledges that the disciplinary dismissal is unfair, the employment contract will be deemed terminated at the date of dismissal if the employer deposits in advance to the Labour Court at the disposal of the employee the statutory compensation for unfair dismissal which amounts to 45 days' wages for each year of service up to a maximum of 42 months' wages (art. 56(2) ET).
    -According to art. 49(1)c) ET, upon termination of a fixed term contract by expiry of the term or completion of the work, the worker is entitled to a payment of 8 day's per year of service. This does not, however, apply to termination of a contract concluded for training purposes or to replace employees temporarily absent from work (art. 49(1)c) ET).

    NOTE - Labour Market Reform, enacted by Royal Decree Law 10/2010 [RDL10]:
    The RDL10 amends art. 49(1)c) ET by increasing fixed-term contract termination indemnity on a yearly basis from 8 days' wages to 12 days' wages in 2015, as follows:
    - 8 days' wages for contracts concluded through December 31st, 2011;
    - 9 days' wages for contracts concluded through January 1st, 2012,
    - 10 days' wages for contracts concluded through January 1st, 2013,
    - 11 days' wages for contracts concluded through January 1st, 2014,
    - 12 days' wages for contracts concluded through January 1st, 2015.
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)
Redundancy payment:
Remarks:
  • In the event of dismissal for economic reasons (individual or collective), the employees are entitled to redundancy payment in an amount equivalent to 20 days' wages per year of service up to a maximum of 12 months' wages (for periods of less than a year, this is calculated in proportion to the period of service). See arts. 51(8) and 53(1) ET.
    In undertakings employing fewer than 25 workers, the Wage Guarantee Fund must pay 40% of the redundancy payment (for individual and collective economic dismissals). See art. 33(8) ET.
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)

Notes / Remarks
1) Dismissal for an objective reason (including individual and collective dismissals for economic reasons): severance pay = 20 days' wages per year of service up to a maximum of 12 month's wages.
2) Disciplinary dismissal: no severance pay.
3) If the employer acknowledges that the disciplinary dismissal is unjustified: compensation for unfair dismissal can be paid in advance to the employee in order to avoid trial and payment of back pay. Such compensation amounts to 45 days' wages per year of service up to a maximum of 42 months' wages (see below).
4)Termination of a fixed-term contract (which is not concluded for training or substitution purposes): 8 days' wages per year of service.

+ show references

Severance pay:
Remarks:
  • - In the event of dismissal for an objective reason (i.e economic reasons, worker's capacity - see valid grounds), at the time the written notice of dismissal is delivered to the worker, severance pay shall be simultaneously made available to the worker. Severance pay amounts to 20 days' wages per year of service with a maximum of 12 months' wages (art. 53(1) ET).
    - A worker who is dismissed for disciplinary reasons is not entitled to severance pay.
    However, it is important to emphasize that in the event the employer acknowledges that the disciplinary dismissal is unfair, the employment contract will be deemed terminated at the date of dismissal if the employer deposits in advance to the Labour Court at the disposal of the employee the statutory compensation for unfair dismissal which amounts to 45 days' wages for each year of service up to a maximum of 42 months' wages (art. 56(2) ET).
    -According to art. 49(1)c) ET, upon termination of a fixed term contract by expiry of the term or completion of the work, the worker is entitled to a payment of 8 day's per year of service. This does not, however, apply to termination of a contract concluded for training purposes or to replace employees temporarily absent from work (art. 49(1)c) ET).

  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)
Redundancy payment:
Remarks:
  • In the event of dismissal for economic reasons (individual or collective), the employees are entitled to redundancy payment in an amount equivalent to 20 days' wages per year of service up to a maximum of 12 months' wages (for periods of less than a year, this is calculated in proportion to the period of service). See arts. 51(8) and 53(1) ET.
    In undertakings employing fewer than 25 workers, the Wage Guarantee Fund must pay 40% of the redundancy payment (for individual and collective economic dismissals). See art. 33(8) ET.
  • tenure ≥ 6 months: 10 day(s)
  • tenure ≥ 9 months: 15 day(s)
  • tenure ≥ 1 year: 20 day(s)
  • tenure ≥ 2 years: 40 day(s)
  • tenure ≥ 4 years: 80 day(s)
  • tenure ≥ 5 years: 100 day(s)
  • tenure ≥ 10 years: 200 day(s)
  • tenure ≥ 20 years: 12 month(s)

Notes / Remarks
1) Dismissal for an objective reason (including individual and collective dismissals for economic reasons): severance pay = 20 days' wages per year of service up to a maximum of 12 month's wages.
2) Disciplinary dismissal: no severance pay.
3) If the employer acknowledges that the disciplinary dismissal is unjustified: compensation for unfair dismissal can be paid in advance to the employee in order to avoid trial and payment of back pay. Such compensation amounts to 45 days' wages per year of service up to a maximum of 42 months' wages (see below).
4)Termination of a fixed-term contract (which is not concluded for training or substitution purposes): 8 days' wages per year of service.