In Spain, an employer must justify a dismissal — broadly disciplinary (serious misconduct), objective (economic, technical, organisational, production or capability grounds), or a collective dismissal (ERE). The dismissal is then classified as fair (procedente), unfair (improcedente) — the reason wasn't valid or the procedure was defective — or null (nulo), reserved for protected situations like discrimination, pregnancy or retaliation. An unfair dismissal entitles you to compensation (commonly 33 days' salary per year of service for current-rule service, with 45 days for older service, subject to caps) or reinstatement at the employer's choice; a null dismissal generally means reinstatement with back pay. Crucially, you have just 20 working days from the dismissal to challenge it. Miss that and a good claim is usually lost. Act immediately — we deal with the conciliation and labour court process in English.
Types of Dismissal
Spanish law recognises distinct types of dismissal, each with its own requirements:
| Type | Basis |
|---|---|
| Disciplinary (disciplinario) | Serious and culpable breach by the employee — misconduct, repeated lateness, disobedience, etc. No compensation if valid. |
| Objective (objetivo) | Economic, technical, organisational or production grounds, or capability/incapacity. Requires notice and statutory compensation. |
| Collective (ERE / despido colectivo) | Larger-scale dismissals for business reasons, with a consultation procedure — see our redundancy guide. |
The employer must put the dismissal in writing (the carta de despido), stating the cause and, for objective dismissals, the date and any compensation offered. The type matters because it sets what the employer had to do and prove. A disciplinary dismissal requires genuinely serious, culpable conduct; an objective dismissal requires real economic/organisational grounds and proper notice and severance. Where the stated reason doesn't hold up or the procedure is botched, the dismissal isn't "fair," which opens the door to a successful challenge. The first step in any case is reading the dismissal letter carefully to see what's claimed and whether it stands up.
Fair, Unfair or Null
Whatever its type, a dismissal is ultimately classified into one of three outcomes — and this classification is what determines what you get:
- Fair (procedente). The reason was valid and properly carried out. For a disciplinary dismissal, no compensation; for a valid objective dismissal, the statutory objective-dismissal compensation already due.
- Unfair (improcedente). The reason wasn't sufficiently proven or valid, or the procedure was defective. This triggers the higher unfair-dismissal compensation, or reinstatement.
- Null (nulo). The dismissal breached a fundamental right or protected situation (discrimination, pregnancy/maternity, retaliation for exercising rights, etc.). Generally means reinstatement with back pay.
Most contested dismissals turn on whether they're fair or unfair — i.e. whether the employer's stated reason holds up and the process was correct. The null category is narrower but powerful, reserved for the most serious situations, and gives the strongest remedy. A great many dismissals that employers present as "fair" are in fact unfair on closer scrutiny — because the misconduct can't be proven, the economic grounds don't really exist, or a formality was missed — which is exactly why getting a dismissal reviewed promptly so often pays off.
Unfair (Improcedente)
A dismissal is improcedente (unfair) when the employer can't justify it on the stated grounds, or got the procedure wrong. Common reasons a dismissal is found unfair include: alleged misconduct that the employer can't actually prove; "objective" economic grounds that don't genuinely exist or aren't properly evidenced; defects in the dismissal letter (insufficient detail of the cause); or failures in the required notice or process. Because the burden is on the employer to justify the dismissal, a weak or poorly documented case often falls apart — which is why so many dismissals are ruled unfair.
When a dismissal is declared unfair, the law generally gives the employer the choice between reinstating you (with back pay for the period out of work) or paying the unfair-dismissal compensation. In practice, many employers opt to pay rather than take an employee back. The figure is the key number for most employees, and it's set out below. The important point is that "unfair" is far from a long-shot outcome — given how strictly the grounds and procedure are scrutinised, a properly challenged dismissal frequently ends in an improcedente finding (or a settlement reflecting that risk), which is why employers often prefer to negotiate once a credible challenge is mounted.
Null (Nulo)
A null (nulo) dismissal is the most serious category, reserved for dismissals that violate a fundamental right or a specially protected situation. This includes dismissals that are discriminatory (on grounds such as sex, race, age, disability, etc.), dismissals connected to pregnancy, maternity/paternity or family-care leave, dismissals in retaliation for the employee exercising legal rights (such as complaining about a breach), and certain other protected scenarios. The law treats these with particular severity because they strike at protected rights, not just at the fairness of a business decision.
The remedy reflects that severity: a null dismissal generally requires reinstatement — the employee gets their job back — together with payment of the salary lost for the period since the dismissal (back pay), and there can be additional compensation for the breach of fundamental rights in some cases. So unlike an unfair dismissal (where the employer can choose to pay rather than reinstate), a null dismissal puts the employee back in their job. If your dismissal coincided with pregnancy, a return from family leave, a discrimination issue, or your having recently asserted a right at work, the null category may well be in play — and it's well worth having assessed quickly, because the protection and remedy are strong.
Dismissed around pregnancy, leave or a complaint?
Dismissals linked to pregnancy, maternity/paternity or family-care leave, discrimination, or retaliation for asserting rights can be null (nulo) — meaning reinstatement with back pay, the strongest remedy. If your dismissal coincided with any of these, get it reviewed urgently, as the protection is significant.
Compensation
The headline figures employees most want to know:
- Unfair dismissal (improcedente). Compensation is generally 33 days' salary per year of service for service accrued under the current rules, with a higher rate of 45 days per year for service before the 2012 reform, each subject to maximum caps (a number of monthly payments). Long-serving employees often have a "hybrid" calculation across both rates.
- Objective dismissal (valid). A lower statutory amount of 20 days' salary per year of service, subject to a cap, which the employer must pay (and which can be challenged if the dismissal turns out to be unfair).
- Null dismissal. Reinstatement plus back pay for lost salary, rather than a severance figure (plus any additional compensation for the rights breach).
The exact amount depends on your salary, length of service, and how service splits across the rate periods, and the caps mean very long service doesn't increase the figure indefinitely. On top of any compensation, you're separately owed your finiquito — outstanding salary, accrued untaken holiday and pro-rata extra payments — which is due on any termination regardless of fairness (covered in our severance & finiquito guide). Because the calculation has moving parts, getting the figure worked out correctly matters: employers' offers sometimes understate what's due, and knowing the right number is essential before accepting anything.
The 20-Day Deadline
This is the most important paragraph on the page. You generally have only 20 working days (días hábiles) from the date of the dismissal to challenge it — a strikingly short window that catches many employees, and especially expats, off guard. The clock runs from the dismissal, and the period excludes weekends and public holidays, but it moves fast: a few weeks of "thinking about it," waiting for the employer to respond, or trying to sort things out informally can see the deadline pass.
If the deadline expires, the dismissal generally becomes unchallengeable — even a clearly unfair or null dismissal can simply stand, with no compensation beyond what was already paid. This is why the single most important thing to do after being dismissed is to get advice immediately, within days. The process starts by filing a conciliation request (papeleta de conciliación) with the mediation service (SMAC), which interrupts the deadline — so acting quickly to lodge that protects your position while the merits are worked through. Do not wait for the employer, do not wait until you've found a new job, and do not assume there's plenty of time. The 20-day rule is unforgiving, and protecting it is the first job in any dismissal case.
What to Do & the Process
If you've been dismissed, the path is:
Get the dismissal letter & advice — now
Keep the carta de despido and any documents, and seek advice within days, given the 20-day clock.
File for conciliation (SMAC)
Lodge the conciliation request, which interrupts the deadline and triggers a compulsory mediation attempt with the employer.
Conciliation meeting
Many cases settle here — the employer, facing a credible challenge, often agrees compensation reflecting the unfair-dismissal risk.
Labour court if needed
If conciliation fails, the claim goes to the labour court (juzgado de lo social), which classifies the dismissal and orders the remedy.
A reassuring feature is how often these cases settle at conciliation. Because the burden is on the employer to justify the dismissal and unfair findings are common, an employer faced with a well-mounted challenge frequently prefers to agree a payment rather than risk a court ruling of improcedente (or worse, nulo). So challenging a dismissal isn't necessarily a long court battle — it's frequently resolved by a negotiated settlement once the claim is properly lodged. Throughout, the language and procedure are in Spanish, which is exactly where having an English-speaking team handle the SMAC filing, the negotiation and any court hearing removes the stress and protects your rights. The decisive factor remains acting fast enough to protect the 20-day deadline.
How We Help
We act urgently for expat employees facing dismissal in Spain. We review the carta de despido and the circumstances, assess whether the dismissal is likely fair, unfair or null, and calculate the compensation and finiquito you should receive. Critically, we move fast to protect the 20-day deadline by filing the SMAC conciliation request, then negotiate a settlement at conciliation or pursue the claim in the labour court — all handled in Spanish on your behalf. We're especially alert to null-dismissal situations (pregnancy, leave, discrimination, retaliation) where the remedy is strongest. It's all in plain English on a clear quote, part of our employment law service. Book a consultation the moment you're dismissed — the clock is already running.
Related Guides
Severance Pay & Finiquito
What you're owed on leaving, and how it's calculated.
Severance & finiquito →Frequently Asked Questions
Generally only 20 working days (días hábiles) from the date of the dismissal — a very short window excluding weekends and public holidays. If it expires, the dismissal usually becomes unchallengeable, even if it was clearly unfair or null. The process starts by filing a conciliation request (papeleta de conciliación) with the SMAC, which interrupts the deadline. Because of this, get advice within days of being dismissed rather than waiting.
An unfair (improcedente) dismissal is one where the reason wasn't valid or properly proven, or the procedure was defective — the remedy is compensation or reinstatement at the employer's choice. A null (nulo) dismissal violates a fundamental right or protected situation (discrimination, pregnancy/maternity, retaliation), and the remedy is generally reinstatement with back pay, sometimes plus additional compensation. Null is narrower but gives the strongest, employee-favouring outcome.
For an unfair (improcedente) dismissal, compensation is generally 33 days' salary per year of service for service under the current rules, with a higher 45-day rate for service before the 2012 reform, each subject to caps. The exact figure depends on your salary, length of service and how it splits across the rate periods. Separately, you're owed your finiquito on any termination. Employer offers sometimes understate what's due, so it's worth having the figure checked.
For an unfair (improcedente) dismissal, generally yes — the law usually gives the employer the choice between reinstating you (with back pay) or paying the unfair-dismissal compensation, and many opt to pay. For a null (nulo) dismissal it's different: the remedy is reinstatement with back pay, so the employee gets their job back. That's one reason the null category is so significant where it applies.
Not necessarily. Many dismissals presented as fair are actually unfair on closer scrutiny, because the alleged misconduct can't be proven, the economic grounds don't genuinely exist, or a formality (like sufficient detail in the dismissal letter or proper notice) was missed. The burden is on the employer to justify the dismissal, so weak or poorly documented cases often fall apart. That's why getting the dismissal letter and circumstances reviewed promptly so often pays off.
No — many settle at the compulsory conciliation stage (SMAC) before any court hearing. Because the burden is on the employer and unfair findings are common, an employer facing a credible challenge often prefers to agree a payment reflecting the risk rather than litigate. So challenging a dismissal is frequently resolved by a negotiated settlement once the claim is properly lodged, rather than a long court battle.
This may be a null (nulo) dismissal. Dismissals connected to pregnancy, maternity/paternity or family-care leave fall into the specially protected category, and a null finding generally means reinstatement with back pay — the strongest remedy. Given the protection and the short deadline, you should get the dismissal reviewed urgently. The same applies if the dismissal looks like discrimination or retaliation for asserting your rights.
It depends on what you signed and whether the 20-day deadline has passed. Signing the finiquito (settlement of outstanding amounts) doesn't always waive the right to challenge the dismissal, especially if you signed "under protest" or weren't given proper advice, but it can complicate matters. If you've accepted a payment but feel the dismissal was unfair or null and you're within time, it's worth getting advice quickly on whether a challenge is still possible.