Claiming Unpaid Wages in Spain: How to Sue Your Employer & Deadlines

🇪🇸 Read the original in Spanish

Working and not receiving your agreed-upon remuneration in the legally established time and manner is one of the most distressing situations a worker in Spain can experience. Fortunately, the Spanish legal system offers robust and effective mechanisms to demand outstanding debts from employers, both during the employment relationship and after the termination of the contract. In this detailed guide, prepared by the legal team at AbogadoAI, we explain step-by-step how to successfully claim the amounts your employer owes you, what strict deadlines you must respect, and how to secure your money.

The Legal Framework: What Does the Law Say About Unpaid Wages?

A reclamación de cantidad (wage/quantity claim) is the judicial or out-of-court procedure by which a worker demands that their employer pay debts arising from the employment relationship. The right to a salary is protected at the highest level in the Spanish legal system.

The reference regulatory framework rests on three fundamental pillars:

1. *The Estatuto de los Trabajadores (Workers' Statute - Royal Legislative Decree 2/2015, of October 23):*

• Article 4.2.f): Establishes the timely receipt of the agreed or legally established remuneration as a basic right of the worker.
• Article 29.1: Determines that the settlement and payment of the salary must be made punctually and documentarily on the agreed date and place. The payment period cannot exceed one month.
• Article 29.3: Establishes that the interest for delay in the payment of wages shall be 10% annually of the amount owed.
• Articles 59.1 and 59.2: Regulate the limitation period for actions arising from the employment contract, setting it at one year.

1. *The Ley Reguladora de la Jurisdicción Social (Law Regulating Social Jurisdiction - Law 36/2011, of October 10 - LRJS):*

• Regulates the procedural path to channel the lawsuit, from the mandatory prior conciliation (Article 63) to the proceso monitorio laboral (labor injunction process) (Article 101) or the ordinary wage claim process (Article 80 et seq.).

1. *The Ley General de la Seguridad Social (General Social Security Law - LGSS):*

• Regulates the contribution bases and the liabilities arising from unpaid contributions, which run parallel to the claim for the worker's net salary.

What Economic Concepts Can Be Claimed?

Not everything claimed from an employer is strictly "base salary". The worker has the right to judicially demand any economic concept derived from their provision of services, which includes:

• Accrued and unpaid monthly salaries: The base salary and salary supplements (seniority, night shifts, hazardous work, etc.) reflected in the nóminas (pay slips) or determined by the applicable Convenio Colectivo (Collective Bargaining Agreement).
• Extra payments: Both if they are prorated monthly or paid in specific months (generally summer and Christmas).
• Overtime hours: Hours worked above the ordinary legal or agreed working day, which must be rigorously proven.
• Untaken holidays: Only economically claimable after the termination of the employment contract, as they must be physically enjoyed during the employment relationship.
• Allowances and travel expenses: Non-salary compensatory concepts for expenses incurred by the worker to perform their duties.
• *The Finiquito (severance/settlement agreement):* The proposed settlement of outstanding amounts upon termination of the contract (including the proportional part of extra payments, untaken holidays, and notice periods not respected).
• Salary differences: When the company pays below what is stipulated in the Convenio Colectivo for the actual professional category the worker performs.

The Time Factor: Strict Deadlines to Claim

In Spanish labor law, time is a critical factor. If you let the legal deadlines pass, you will lose the right to claim your money, no matter how obvious the employer's debt is.

• The general limitation period is 1 year (12 months): This period is regulated in Article 59 of the Estatuto de los Trabajadores.
• When does the year start counting? The calculation begins on the day the claimed amount should have been received by the worker. For example, if the pay slip for March 2023 should have been paid on March 31, 2023, the worker has until March 31, 2024, to file the claim.
• Interruption of the period: The one-year period is subject to prescripción (statute of limitations), which means it can be interrupted. If you send a burofax (certified registered mail), file a papeleta de conciliación (conciliation petition), or make any reliable written claim, the 365-day counter resets to zero and starts over.

Practical Examples of Wage Claims

To better understand how deadlines, concepts, and late-payment interest operate, we analyze two common scenarios.

Example 1: Claiming back-pay with interest for delay

Carlos works as a copywriter at a marketing agency in Madrid with a monthly net salary of €1,500. The company stops paying him his salaries for January, February, and March 2023. Carlos decides to file a papeleta de conciliación on May 15, 2023.

• Principal debt: €1,500 x 3 months = €4,500.
• Interest for delay (10% annually): When claiming judicially, Carlos has the right to demand a 10% interest rate for late payment on the owed salaries (according to Art. 29.3 of the ET). If the trial is held one year after the non-payment, the company must pay, in addition to the €4,500, a surcharge of €450 in interest.
• Deadline: Carlos had until February 28, 2024, to claim the February 2023 pay slip. By presenting the petition in May 2023, he safely interrupted the deadline.

Example 2: Unpaid settlement after dismissal

Elena is dismissed from a hospitality company on June 15, 2023. Her finiquito document states that the company owes her €1,200 for untaken holidays and the proportional part of extra payments. The company signs the finiquito but does not transfer the money, claiming liquidity problems.

• Deadline to claim: Elena has exactly until June 15, 2024, to file the papeleta de conciliación claiming those €1,200. If she presents the claim on June 16, 2024, the action will have expired, and the judge will automatically dismiss the lawsuit, resulting in the permanent loss of the money.

Step-by-Step: How to Claim Judicially and Out-of-Court

If your company owes you money, you must follow a structured legal itinerary. Skipping steps can invalidate your claim.

Step 1: Amicable Solution Attempt (Optional but Recommended)

Before starting the legal route, it is advisable to send a written communication to the company (preferably via Burofax with acknowledgment of receipt and certification of text). In this document, you must detail the owed concepts, the exact amount, and give a reasonable deadline (for example, 5 or 10 business days) for them to make the payment. This serves as proof of good faith and, furthermore, interrupts the one-year limitation period.

Step 2: The Papeleta de Conciliación (Mandatory)

If the amicable route fails, Article 63 of the LRJS requires, as a mandatory prior step before going to court, the presentation of a Papeleta de Conciliación before the administrative mediation, arbitration, and conciliation service of your Autonomous Community (for example, the SMAC, CMAC, or UMAC).

• Effect of filing: The moment you register the papeleta de conciliación, the one-year limitation period is suspended temporarily for a maximum of 15 business days.
• The conciliation act: The worker and employer will be summoned to a meeting with a public mediator. Three outcomes can occur:
• *With agreement (Con avenencia):* The company recognizes the debt and agrees to pay (an agreement is signed which has direct executive force; if they do not pay, you can directly seize their assets).
• *Without agreement (Sin avenencia):* The company appears but does not recognize the debt or offer an acceptable agreement. The judicial path is opened.
• *Attempted without effect (Intentada sin efecto):* The company does not show up. The judicial path is opened, and the judge can impose a fine on the company for procedural bad faith.

Step 3: The Lawsuit before the Juzgado de lo Social (Labor Court)

If there is no agreement in the conciliation act, you have the remaining time of the one-year limitation period to file the Demanda de Reclamación de Cantidad (wage claim lawsuit) before the Juzgados de lo Social of the place where the work is performed or the company's registered address (at the worker's choice).

• *Is a lawyer and court agent (procurador) necessary? In the first instance of the social jurisdiction, it is not mandatory to appear with a lawyer or a graduado social* (labor relations specialist) if the amount is below certain limits, but it is highly recommended to have professionals to avoid formal errors that could ruin the process.
• *The Proceso Monitorio Laboral: For claims of up to €6,000 that are liquid, due, and demandable (and are not collective), Article 101 of the LRJS allows the use of a faster injunction process, where if the company does not oppose within 10 days*, enforcement is ordered directly.

Step 4: The Trial and Judgment

If the ordinary process is pursued, an oral hearing (trial) will be held where both parties will present their evidence (contracts, signed and unpaid pay slips, bank statements proving the absence of transfers, working hours records, etc.). The judge will issue a judgment upholding or dismissing the claim.

What Happens if the Employer Declares Insolvency? The Role of FOGASA

One of the biggest worries for workers is winning the trial but finding that the company has no money or assets to pay (insolvency). For these cases, the Spanish system has the Fondo de Garantía Salarial (FOGASA) (Wage Guarantee Fund), an autonomous body attached to the Ministry of Labor.

FOGASA intervenes when there is a judicial resolution (judgment or judicial conciliation agreement) or administrative decision declaring the insolvency or bankruptcy (concurso de acreedores) of the company. However, FOGASA does not cover 100% of the debts without limit; it has legal caps:

• Limit on outstanding wages: FOGASA pays a maximum of 120 days of unpaid salary.
• Daily limit: The guaranteed daily amount cannot exceed double the daily Salario Mínimo Interprofesional (SMI - Minimum Interprofessional Wage) in force at the time of accrual, including prorated extra payments.

Mistakes to Avoid When Claiming Outstanding Amounts

Making mistakes during the claim process can mean the permanent loss of your money. Avoid the following errors at all costs:

• Letting the 1-year deadline pass: Thinking that "since the company belongs to a friend" or "they promise they will pay next month" you can wait indefinitely. If a year passes from the non-payment without you having presented a formal written claim or papeleta de conciliación, the debt will have legally expired.
• *Signing the finiquito with the mention "received and approved" (recibido y conforme) if you have not been paid: If you are dismissed or your contract ends and they hand you the finiquito* promising that "they will make the transfer tomorrow", never sign with just your signature. You must write in your own handwriting next to your signature the phrase: "No recibido" (Not received) or "No conforme y pendiente de pago" (Not approved and pending payment). Otherwise, you will be declaring before the law that you have already received that money.
• Not providing proof of the work done or overtime: In the case of claiming overtime hours or salary differences for performing higher professional category duties, the burden of proof can be complex. Always save emails, WhatsApp messages from superiors, working hours records, signed reports, or client testimonials that prove your actual working hours.
• Voluntarily resigning from your job due to non-payment: If the company owes you several pay slips, never stop going to work on your own accord (voluntary resignation), as you will lose the right to severance pay and unemployment benefits (paro). The correct path is to sue for the termination of the contract via Article 50 of the Estatuto de los Trabajadores due to a serious breach by the employer, keeping your job until the judge issues a ruling.

Frequently Asked Questions (FAQ)

Can I claim if I have worked "under the table" (without a contract)?

Yes, of course. The fact that the employer has breached their obligation to register you with the Social Security and draft a written contract does not invalidate your labor rights. In this case, the process is twofold: you must file a complaint with the Inspección de Trabajo (Labor Inspectorate) so they can certify the employment relationship, and, in parallel, file the wage claim proving by any means of evidence (messages, witnesses, partial transfers, photos) that you indeed provided services for that company.

What happens if the company has closed and I cannot locate the owner?

If the company has closed de facto (shutters down), the procedure still goes ahead. The papeleta de conciliación and the subsequent lawsuit will be directed against the commercial company or the individual employer. If the court notifications cannot be delivered, the court will publish the notices in the corresponding Official Gazette, and the trial will be held en rebeldía (in default) of the company. Once the favorable judgment is obtained, enforcement will be requested, and after the company's insolvency is judicially declared, you can request payment from FOGASA.

Can I claim interest if the employer is constantly late but ends up paying?

Yes. Article 29.3 of the Estatuto de los Trabajadores establishes a late-payment interest rate of 10% annually. If the company systematically pays your salaries months late, you can file a wage claim demanding exclusively the payment of the interest generated by those delays, always respecting the one-year limitation period from when each pay slip should have been paid.

How much does it cost to start a wage claim process?

The social jurisdiction in Spain is, as a general rule, free for workers in the first instance. There are no court fees. If you decide to hire a private lawyer or graduado social, their fees are freely agreed upon (usually a low fixed amount and a success fee percentage of the recovered amount, known as cuota litis). If you are a member of a trade union, they usually offer free or low-cost legal services to their members with a certain length of membership.

In Summary

• The deadline to claim any salary debt from the employer is 1 year, which cannot be extended, from the moment of non-payment.
• The Estatuto de los Trabajadores penalizes the non-payment of wages with an interest rate for delay of 10% annually.
• It is mandatory to present a Papeleta de Conciliación before the regional mediation body before you can go to court.
• If you sign a finiquito without having received the actual money in your bank account, always sign adding the note "No recibido" or "No conforme".
• In case of business insolvency or bankruptcy, FOGASA will take over part of the owed salaries within the established legal limits.
• Never abandon your job on your own initiative due to non-payment; use the judicial route of Article 50 of the Estatuto de los Trabajadores to terminate the contract with the right to severance pay and unemployment benefits.

General legal information, not personalised legal advice. For your specific situation, ask your question for free at AbogadoAI — answers grounded in Spanish law (BOE), in English.

This is general information, not legal advice. Verify on the BOE or consult a lawyer for your specific case.