Two different things are owed when a Spanish job ends. The finiquito is the settlement of amounts already earned — outstanding salary, accrued but untaken holiday, and the pro-rata portion of your extra payments (pagas extra) — and it's owed on any termination, whether you resign, are dismissed, or your contract ends. Severance / dismissal compensation (indemnización) is separate and only arises when you're dismissed: generally 33 days' salary per year of service (45 days for pre-2012 service) for an unfair dismissal, or 20 days per year for a valid objective dismissal/redundancy, subject to caps. A resignation generally earns the finiquito but no severance. The big trap: signing the finiquito can be taken as accepting the termination — so never sign without checking the figures and, if you dispute the dismissal, sign "no conforme" (under protest) or get advice first.
Finiquito vs Severance
The first thing to get straight — because employers and employees alike often muddle them — is that finiquito and severance are two separate things:
| Finiquito | Severance (indemnización) | |
|---|---|---|
| What it is | Settlement of amounts already earned | Compensation for being dismissed |
| When owed | On any termination (resign, dismissal, end of contract) | Only on dismissal (not on resignation) |
| Made up of | Unpaid salary, untaken holiday, pro-rata pagas extra | Days' salary per year of service (20 / 33 / 45) |
| Depends on fairness? | No — always due | Yes — amount depends on the type of dismissal |
So the finiquito is a baseline you're owed regardless of how the job ends — it's simply settling up what you've already earned. The severance sits on top and only applies when you're dismissed, with the amount turning on whether the dismissal was fair, unfair or a valid objective/redundancy dismissal. A common and costly confusion is an employer presenting a finiquito payment as though it were "your severance," when in fact it's only the earned amounts and the dismissal compensation hasn't been included. Knowing the two are distinct is the foundation for checking you're actually getting everything you're due.
What the Finiquito Includes
The finiquito (settlement document) totals up everything you've earned but not yet received as at your last day. It should generally include:
- Outstanding salary — pay for the days worked in your final month up to the termination date.
- Accrued untaken holiday — payment for the holiday days you'd earned but hadn't taken.
- Pro-rata extra payments (pagas extra) — the portion of your summer/Christmas extra payments accrued since the last one was paid (where they're not already prorated into your monthly salary).
- Any other amounts owed — outstanding commission, expenses, or supplements due under your contract or convenio.
Because the finiquito is "money you've already earned," it's owed even if you resign or are fairly dismissed — fairness doesn't come into it. The figure should be set out clearly in the finiquito document the employer asks you to sign. The common problems are under-calculation (holiday or pagas-extra portions omitted or wrong) and conflation (the employer treating the finiquito as if it also covered dismissal compensation). Checking the finiquito against what you should have earned is straightforward arithmetic once you know what belongs in it — and it's the first thing to verify when a job ends.
Severance Compensation
Severance (indemnización por despido) only arises on dismissal, and the amount depends on the type of dismissal:
| Situation | Compensation |
|---|---|
| Unfair dismissal (improcedente) | 33 days' salary per year of service (current rules); 45 days per year for pre-2012 service; subject to caps. |
| Objective dismissal / redundancy (valid) | 20 days' salary per year of service, subject to a cap. |
| Disciplinary dismissal (valid) | No severance (only the finiquito) — but can be challenged as unfair. |
| Null dismissal (nulo) | Reinstatement with back pay, rather than a severance figure. |
The key insight is that the severance figure is not fixed in advance — it depends on how the dismissal is ultimately classified. An employer dismissing you for "objective" reasons may offer the 20-day amount, but if the dismissal is actually unfair, you'd be entitled to the higher 33/45-day figure. Likewise, a disciplinary dismissal offering nothing may be unfair, entitling you to compensation. This is precisely why the severance offered at the point of dismissal is often a starting point rather than the final answer, and why challenging the classification (within the 20-day deadline) can substantially increase what you receive. The redundancy guide covers objective/collective dismissals in more detail.
How It's Calculated
The severance calculation has a few moving parts that determine the final figure:
Daily salary
Your relevant salary is converted to a daily rate (annual gross including prorated extra payments, divided across the year).
Years of service
Your length of service is counted, with part-years generally pro-rated.
Apply the rate(s)
33 days/year (unfair) or 20 days/year (objective) for current-rule service; 45 days/year for any pre-2012 service — long-serving staff get a hybrid.
Apply the cap
The total is subject to a maximum (a set number of monthly payments), so very long service doesn't increase it indefinitely.
Two details catch people out. First, the salary figure used matters enormously — it should reflect your true full remuneration (including the prorated pagas extra and applicable supplements), and employers sometimes calculate on a lower base, understating the result. Second, the pre-2012 service at 45 days can significantly boost the entitlement of long-serving employees, and is sometimes overlooked. Because of these, two calculations of "the same" dismissal can differ materially, and an employer's figure is worth independently checking. We run the calculation properly so you know the correct number before deciding whether to accept an offer or challenge it.
The right salary figure changes the answer
Severance is days' pay per year of service — so the salary base used is decisive. It should reflect your full remuneration including prorated extra payments and supplements; a lower base understates the figure. Long-serving employees should also check whether pre-2012 service at the higher 45-day rate applies. Independent calculation often reveals more is due.
If You Resign
It's important to understand that resigning generally earns you the finiquito but no severance. If you choose to leave, you're settling up what you've earned (the finiquito), but you're not entitled to dismissal compensation, because you weren't dismissed. This is why employees should be cautious about being pushed into resigning — an employer who wants you gone but doesn't want to pay severance may pressure you to "resign," which would forfeit the compensation a dismissal would attract.
There are important nuances. If you resign because the employer has seriously breached your contract (for example not paying you, or a serious unilateral change to your conditions), you may be able to bring a claim to terminate the contract at the employer's fault, which can carry compensation similar to unfair dismissal — so a "forced" resignation due to the employer's conduct isn't necessarily a simple resignation. Also, leaving voluntarily generally affects entitlement to unemployment benefit. The practical takeaway: don't resign under pressure without advice, because the difference between a resignation and a dismissal (or a constructive-dismissal-style claim) can be many months' salary. If you're being nudged toward the door, it's worth understanding your real options first.
The Signing Trap
This is the most important practical warning. When you leave, the employer will present a finiquito document to sign, confirming receipt of the settlement. The trap is that signing it can be interpreted as accepting the termination and settling all claims — potentially undermining your ability to later challenge an unfair dismissal or claim amounts you were short-changed. Employees, often relieved to receive a payment or anxious about the situation, sign without checking, and only later realise they may have signed away rights worth far more.
The protections are simple but vital. First, check the figures before signing — is the finiquito complete and correct, and is the severance (if a dismissal) properly included and calculated? Second, if you dispute the dismissal or aren't sure the amounts are right, do not sign in unqualified acceptance: you can sign "no conforme" (not in agreement) or "recibí pero no conforme" (received but not in agreement), which acknowledges receipt of the money without accepting that it settles everything, preserving your right to challenge. Third, remember the 20-day dismissal deadline keeps running regardless. The safest course if anything feels off is to get the document checked before signing — a quick review can be the difference between accepting a short payment and recovering what you're truly owed.
Common Mistakes
The recurring, costly errors when a Spanish job ends:
- Confusing finiquito with severance. Accepting a finiquito as if it were your dismissal compensation, when severance is separate and on top.
- Signing in full acceptance. Signing the finiquito without "no conforme" when you dispute the dismissal — potentially waiving the right to challenge.
- Not checking the calculation. Trusting the employer's figure, which may use a lower salary base or omit pre-2012 service.
- Resigning under pressure. Being nudged into resigning and forfeiting severance you'd have received on dismissal.
- Missing the 20-day deadline. Treating the payment as the end of the matter while the (short) window to challenge a dismissal runs out.
- Overlooking constructive-dismissal-type claims. Not realising that resigning over an employer's serious breach can carry compensation.
Almost all of these are avoidable with a quick check before signing. The amounts at stake — particularly the gap between a finiquito-only payment and full unfair-dismissal compensation for a long-serving employee — make that check one of the highest-value things you can do when a job ends.
How We Help
We make sure expat employees get everything they're owed when a Spanish job ends. We check and recalculate the finiquito (salary, holiday, prorated pagas extra) and the severance, using the correct salary base and capturing any pre-2012 service, so you know the true figure before you sign anything. We advise on whether to sign "no conforme" and protect the 20-day deadline, flag where a dismissal looks unfair (raising you from 20 to 33/45 days) or where a pressured resignation could be a fault-based claim, and pursue the difference through conciliation or the labour court. It's all in plain English on a clear quote, part of our employment law service. Book a consultation before you sign.
Related Guides
Workplace Disputes & Claims
Recovering what you're owed through conciliation/court.
Workplace disputes →Frequently Asked Questions
The finiquito is the settlement of amounts you've already earned — outstanding salary, accrued untaken holiday, and the pro-rata portion of your extra payments — and is owed on any termination, including resignation. Severance (indemnización) is compensation for being dismissed, only owed on dismissal, calculated as days' salary per year of service. They're separate: the severance sits on top of the finiquito. A common trap is an employer presenting the finiquito as though it were your severance.
It depends on the type of dismissal. An unfair dismissal (improcedente) generally attracts 33 days' salary per year of service for current-rule service, with 45 days per year for pre-2012 service, subject to caps. A valid objective dismissal/redundancy attracts 20 days per year, capped. A valid disciplinary dismissal attracts no severance (but can be challenged as unfair). A null dismissal means reinstatement with back pay. The figure isn't fixed until the classification is settled.
Yes — the finiquito settles amounts you've already earned, so it's owed whether you resign, are dismissed, or your contract ends. What you don't get on a simple resignation is severance compensation, because you weren't dismissed. That's why employees should be cautious about being pushed to resign, which can forfeit the severance a dismissal would attract. Resigning over a serious employer breach, however, can sometimes carry compensation.
It's days' salary per year of service: the relevant rate (20, 33 or 45 days) applied to your length of service, using a daily salary derived from your full annual remuneration (including prorated extra payments and supplements), then subject to a cap. The salary base used is decisive — a lower base understates the result — and pre-2012 service at 45 days can boost a long-serving employee's entitlement. Independent calculation often reveals more is due than an employer offers.
Not without checking it first. Signing can be interpreted as accepting the termination and settling all claims, potentially undermining a later challenge. Check the figures are complete and correct, and if you dispute the dismissal or aren't sure, sign "no conforme" (not in agreement) — which acknowledges receipt of the money without accepting it settles everything, preserving your right to challenge. The 20-day deadline keeps running regardless, so get it checked promptly.
It means signing the finiquito "not in agreement" (or "recibí pero no conforme" — received but not in agreement). This acknowledges that you received the payment without accepting that it fully and finally settles your claims, so it preserves your ability to challenge the dismissal or claim further amounts. It's the protective way to sign if you have any doubt about the figures or dispute the termination, rather than signing in unqualified acceptance.
Be very careful and get advice first. Resigning generally forfeits the severance you'd receive if dismissed, so an employer who wants you gone but doesn't want to pay may pressure you to resign. The difference can be many months' salary. If the employer has seriously breached your contract (e.g. not paying you, or a serious unilateral change), you may have a fault-based claim that carries compensation. Don't resign under pressure without understanding your real options.
Possibly, depending on what you signed and the time limits. If the finiquito under-calculated what you were owed, or if the dismissal was unfair and you signed "no conforme" or weren't properly advised, there may be scope to claim the difference. Claims for unpaid amounts and to challenge a dismissal have time limits (the dismissal challenge being a short 20 working days), so act quickly. Get the documents reviewed to see whether a claim is still open.