Notice of dismissal is one of the most important aspects when ending an employment relationship. Whether you’re an employee facing dismissal or an employer needing to terminate a worker’s contract, understanding the timelines and requirements of notice is crucial to avoid penalties, disputes, and legal issues. In this article, we’ll explain what notice of dismissal is, how it works, and its legal implications.
What is a dismissal notice in Spain?
Notice of dismissal is a legal procedure that requires one party—either the employee or the employer—to notify the other party of their intention to terminate the employment relationship in advance. The purpose of notice is to give both parties enough time to prepare for the end of the employment relationship.
Important: Do not confuse the notice period with the prior hearing for disciplinary dismissals. The latter is a right that ensures the employee has the opportunity to be heard before a final decision on disciplinary termination is made.
Types of dismissal notice
The notice period varies depending on the type of dismissal. Here are the main categories:
Notice period in Objective Dismissal
A notice period is mandatory in cases of objective dismissal. This type of termination occurs when the employer ends the contract due to ETOP reasons (economic, technical, organizational, or production-related causes), an employee’s supervening unfitness for the role, failure to adapt to technical modifications in their job, or insufficient budget allocation to maintain the contract in nonprofit organizations funded by public administration.
According to Article 53.1.c of the Workers’ Statute, the notice period must be 15 days, counted from the date the employee receives personal notification until the termination of the employment contract.
Notice period in Collective Dismissal
In cases of collective dismissal—where multiple employees are laid off simultaneously due to economic, technical, organizational, or production-related reasons—the employer must also observe a notice period.
The notice period for termination decisions in collective dismissals is also 15 days. However, as a general rule, at least 30 days must pass from the start of the collective dismissal procedure to the actual termination date.
Standard Timelines for Collective Dismissal Procedures:
- The process begins with a written notification from the employer to the employees’ legal representatives, informing them of the start of a consultation period. The consultation period must begin no earlier than three days after this notification.
- Once these three days have passed, the consultation period officially starts.
- In companies with fewer than 50 employees, it cannot exceed 15 days.
- In companies with 50 or more employees, it cannot exceed 30 days.
- Once the consultation period ends, the company must inform the labor authorities and, if applicable, the employees’ legal representatives within 15 days.
- After notifying the labor authorities and representatives, the company can proceed with dismissals, giving affected employees a 15-day notice.
- In any case, at least 30 days must pass between the initial notification to the labor authority and the effective date of dismissal.
Exception to the Rule: Mass Layoffs Due to Business Closure
If one or more work centers shut down permanently, affecting at least 50 employees, the employer must notify the labor authority at least six months in advance. The reference date for this six-month period is the initial notification to employee representatives regarding the consultation period.
After the six-month period, employees must still be given a 15-day notice before termination. This means that from the start of the process to its completion, at least six and a half months will have passed.
Notice period in Disciplinary Dismissal
No notice period is required for disciplinary dismissals since they are immediate terminations based on the employee’s conduct, such as serious misconduct or failure to meet work obligations.
The dismissal can be communicated at the moment the decision is made. However, it is mandatory to conduct a prior hearing to allow the employee to present their case. If this step is skipped, the dismissal may be ruled as unfair due to procedural errors.
Consequences of failing to comply with the dismissal notice
The consequences of failing to give a 15-day notice in cases of objective or collective dismissal are outlined in Article 53.4 (seventh paragraph) of the Workers’ Statute:
“Failure to provide the notice period or making an excusable error in calculating severance pay does not render the dismissal unfair. However, the employer must compensate the affected employee with wages for the corresponding period or correct the severance payment, without prejudice to any other applicable consequences.”
From this, we can draw several key conclusions:
- Providing the 15-day notice is at the employer’s discretion. However, if they fail to give notice, they must compensate the employee for those days in wages.
- Not giving prior notice does not make the dismissal unfair, as long as the employer compensates the affected employees accordingly.
Timelines and requirements for dismissal notices
Notice periods vary depending on the type of dismissal, but they must always be strictly observed to avoid unnecessary payments for those days.
What to do if the dismissal notice is not complied with?
If you’re an employer and fail to comply with the notice period, it’s advisable to consult with a legal advisor to manage the appropriate compensation for the employee. Otherwise, you could face legal claims that increase the cost of termination.
If you’re an employee and haven’t received the required notice, you may be entitled to additional compensation. In this case, it’s crucial to consult with a labor lawyer to guide you on the legal steps to take.
Minimize the risk of dismissal-related lawsuits
Notice of dismissal is an essential tool to ensure that both the employer and the employee have adequate time to adjust to the end of the employment relationship. Adhering to the established legal timelines and requirements is vital to avoid legal and financial conflicts. Whether you’re facing a dismissal as an employee or as an employer, understanding the details of notice of dismissal can help you make informed decisions and avoid unpleasant surprises.
If you need more information about notice of dismissal or have any questions on how to apply these timelines in your company, don’t hesitate to contact a specialized labor law advisor. Our team of experts will guide you to ensure compliance with all regulations and protect your labor rights.
