Can I be dismissed? Compensation and settlement
Yes, but with compensation and settlement by case. The company can dismiss you, but the consequences depend on the type. A justified disciplinary dismissal (fair) gives no compensation; if unfair (no cause or badly done), you're entitled to 33 days' salary per year worked, up to 24 months (45 days/year for seniority before 2012). An objective dismissal (economic, technical reasons…) gives 20 days per year, max 12 months. In all cases the settlement is paid (days worked, untaken holidays and part of the bonuses). You have 20 working days to challenge the dismissal.
📋 The rules
- Unfair dismissal: 33 days/year (max 24 months)
- Objective dismissal: 20 days/year (max 12 months)
- Fair dismissal (justified disciplinary): no compensation
- Settlement always: days, holidays, bonuses
- Deadline to challenge: 20 working days
🔓 Exceptions
- Void dismissal (discrimination, pregnancy…): mandatory reinstatement and back pay
- Seniority before 2012: a 45-days/year tranche, with caps
- Collective dismissal (ERE): specific procedure
⚠️ Penalties & fines
If the dismissal is declared unfair, the company chooses between reinstating you or paying the 33-days/year compensation. If void (discrimination, pregnancy, reprisal…), reinstatement is mandatory and it must pay the back pay. Not paying the settlement or not giving the dismissal letter with its causes can also invalidate the dismissal. To claim, there's first a conciliation request and then, if needed, the labour court.
📎 Official sources
- BOE · Workers' Statute (dismissal) →
- CGPJ · Calculation of dismissal compensation →
- Ministry of Labour · Dismissal →
❓ Frequently asked
How much dismissal compensation am I owed?
It depends on the type: unfair dismissal gives 33 days' salary per year worked (max 24 months), and objective dismissal 20 days per year (max 12). For seniority before 2012 a 45-days tranche applies, with caps. A fair dismissal gives none.
What's the difference between settlement and compensation?
The settlement is what the company owes you on leaving (days worked that month, untaken holidays, proportional part of bonuses) and is always paid. Compensation is an extra payment when the dismissal is unfair or objective.
How long to challenge a dismissal?
20 working days from the dismissal. First you file a conciliation request and, if no agreement, sue at the labour court. It's a short deadline, so act quickly.
What's a void dismissal?
One based on a discriminatory cause or violating fundamental rights (e.g. dismissing a pregnant worker). It means mandatory reinstatement and payment of the back pay not received.
Do I have to sign the settlement?
You can sign it marking 'not in agreement' if you disagree, which lets you claim later. Signing without reservations can be taken as acceptance. Always check the amounts before signing and, in doubt, get advice.
🔎 Common searches
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