Differences between Spain and the Netherlands regarding labour law on dismissals
Spanish Labour Law presents many differences in comparison with Dutch Labour Law in terms of dismissals and proceedings. There are several ways to put an end to a labour contract in accordance with Spanish Labour Law. The most commonly used forms are:
- Disciplinary dismissal with immediate effect
- Objective dismissal
- Expiry of a fixed-term contract
- Termination of the contract by mutual agreement
- Collective dismissal
In the event of dismissal, compensation is generally payable. However, the amount depends on several factors, such as the type of dismissal, the salary and the duration of the employment relationship.
In this respect, Spanish law applies different formulas: at the end of a fixed-term employment contract, a severance payment of 12 days per year worked is usually paid. An objective dismissal (e.g. dismissal for economic reasons) entails the payment of 20 days’ severance pay per year worked. In the case of disciplinary dismissal with immediate effect, no severance pay is payable. However, if the dismissal (of any kind) is unfair, the compensation will be higher and a compensation corresponding to 33 days’ salary for each year worked will be payable.
Moreover, in certain circumstances, it is possible that the dismissal is not unfair but null and void. In that case the employer should, in principle, reinstate the worker in the workforce.
Our labour lawyers can advise and assist you.