Spain Redundancy
Pay Guide 2025

Spanish Dismissal Indemnity

Spain has a detailed system for severance pay based on the type of dismissal (Objective vs. Unfair).

Official Formulas

• Objective Dismissal: 20 days of salary per year of service, capped at 12 months.
• Unfair Dismissal: 33 days of salary per year of service, capped at 24 months.
• Notice Period: Typically 15 days notice is required.

Employee Rights & Protections

Regardless of your location, most modern labor laws provide standard protections during the severance process. Ensure you are aware of your right to a written explanation, your right to receive your final settlement within a reasonable timeframe (usually 14-30 days), and your protection against unauthorized deductions.

Final Settlement Checklist

• Accrued Leave: Check if you are entitled to encashment of unused vacation days.
• Notice Pay: If you are terminated without notice, you may be entitled to pay-in-lieu.
• Tax Certificates: Ensure you receive all necessary tax documentation for your final year of service.
• Experience Letter: A mandatory requirement in many jurisdictions for your next career move.

How to Negotiate Your Severance

If you believe your severance calculation is incorrect or unfair, start by requesting a detailed breakdown from your HR department. Compare it against the official laws cited in this guide. If discrepancies persist, consider seeking legal advice or contacting your local labor department or ombudsman.