Dismissal Letter in Spain: Legal Requirements and Key Elements

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Dismissal is one of the most complex and delicate moments in Spanish Employment Law, both for the employer who must execute it and for the employee who receives it. In order to prevent the employee from being left defenseless, Spanish legislation requires that the termination of the contract be formalised in writing and in detail through a key document: the dismissal letter. A formal error, imprecise wording, or the omission of an essential detail can transform a fully justified dismissal into an unfair or even null and void dismissal before the courts. In this article, we will analyse in depth what legal requirements this document must meet, its regulatory framework, and how to act step-by-step to protect your rights.

Regulatory framework: Why is the dismissal letter so important?

The dismissal letter is not a mere courtesy or a secondary formality; it is a constitutive requirement of the dismissal itself. This means that, in the Spanish legal system, there is no such thing as a "verbal dismissal". Any attempt to dismiss an employee by word of mouth lacks legal validity and is automatically considered an unfair dismissal due to a defect in form.

The legal framework regulating the dismissal letter is mainly based on the following rules:

• *Real Decreto Legislativo 2/2015, de 23 de octubre, por el que se aprueba el texto refundido de la Ley del Estatuto de los Trabajadores (Royal Legislative Decree 2/2015, of 23 October, approving the recast text of the Workers' Statute Law, hereinafter referred to as the Estatuto de los Trabajadores or ET): Specifically in its Article 55 (for disciplinary dismissal) and in its Article 53* (for dismissal on objective grounds).
• Ley 36/2011, de 10 de octubre, reguladora de la jurisdicción social (Law 36/2011, of 10 October, regulating social jurisdiction - LRJS): Which determines how to challenge a dismissal and the procedural consequences of defects in the letter.

The purpose of the letter is twofold: on the one hand, to guarantee the employee's constitutional right to effective judicial protection (allowing them to know exactly what they are accused of or why they are being let go so they can defend themselves); and, on the other hand, to define the scope of the debate in a future trial. The company will not be allowed to allege in court any reasons other than those set out in writing in the dismissal letter.

Types of dismissal and specific requirements of the letter

Depending on the cause motivating the termination of the contract, the dismissal letter must comply with specific formal and content requirements.

1. The letter in Disciplinary Dismissal (Art. 55.1 ET)

A disciplinary dismissal occurs due to a serious and culpable breach of contract by the worker. According to *Article 55.1 of the Estatuto de los Trabajadores***, the letter must obligatorily contain:

• The facts motivating it: Generalities such as "for lack of respect" or "for low performance" are not enough. Specific dates, times, places, and conducts must be detailed (for example: "on 14 May 2024, at 10:30 am, you insulted client X...").
• The effective date: This is the exact day on which the employment relationship is terminated. It does not require prior notice, so the effective date can be the same day the letter is delivered.

2. The letter in Objective Dismissal (Art. 53.1 ET)

Dismissal on objective grounds is due to economic, technical, organisational, or production reasons (known as ETOP), or due to known ineptitude or lack of adaptation of the worker. The objective dismissal letter requires much stricter requirements:

• Written communication expressing the cause: The economic or technical situation of the company that justifies the redundancy of the job position must be detailed with precision (providing data on losses, drop in sales, etc.).
• Making the severance pay available: Simultaneously with the delivery of the letter, the company must make available to the worker a severance payment of 20 days' pay per year of service, pro-rating periods of time shorter than a year by months, up to a maximum of 12 monthly payments. If the company alleges a lack of liquidity to avoid paying at that moment, it must state this expressly in the letter (and the worker may challenge the truthfulness of said lack of liquidity).
• Notice period: A notice period of 15 days must be granted from the delivery of the letter until the effective termination of the contract. During this notice period, the worker is entitled to a paid leave of 6 hours per week to look for another job.

Mandatory content and structure of the dismissal letter

Although there is no single official template in the Boletín Oficial del Estado (BOE - Official State Gazette), legal practice and Supreme Court jurisprudence have defined a standard structure that every dismissal letter must respect to be considered valid:

1. Identification of the parties: Full name of the worker, DNI/NIE (Spanish national ID or foreigner tax number), professional group, and full details of the company (Registered name, CIF - company tax ID, registered office).
2. Date of drafting and effective date: It must be clear when the document is written and from which day the worker ceases to belong to the company.
3. Detailed facts and reasons: Clear, chronological, and precise explanation of the causes justifying the decision to terminate.
4. Classification of the offense or cause: Mention of the applicable convenio colectivo (collective bargaining agreement) or the articles of the Estatuto de los Trabajadores on which the decision is based (for example, Article 54.2 of the ET for absences or lack of punctuality).
5. Settlement and final payment: Mention that the proposal for the finiquito (final settlement of outstanding pay, including proportional parts of unused holidays, extra payments, and days worked in the current month) is made available to the worker.
6. Company signature and space for the worker's signature: With the date and time of receipt.

Practical steps: Step-by-step upon receiving a dismissal letter

If you are an employee and your company hands you a dismissal letter, it is essential to remain calm and strictly follow these steps so as not to lose your right to claim:

1. Read the document carefully: Do not let yourself be pressured by the haste of the employer or human resources staff. Take the necessary time to read what it says.
2. Check the date: Make sure that the date appearing on the document matches the actual day it is being delivered to you. If the letter has an earlier date, you could lose days from the deadline to claim.
3. Sign as "NO CONFORME" (Not in agreement): This is the most crucial step. By signing the letter, you are confirming that you have received it, but not that you agree with the reasons. Write in your own handwriting the phrase "No conforme", add the real date and time of receipt, and then write your signature. If they also hand you the finiquito, do exactly the same: write "Recibido, no conforme" (Received, not in agreement) before signing.
4. Request your copy: They must hand you an exact duplicate of the letter signed and stamped by the company. Do not leave without your signed copy.
5. Presence of a workers' representative: You have the right to demand that a member of the comité de empresa (works council) or a staff delegate be present at the time of signing. If the company refuses, state this next to your signature by writing: "Se me deniega la presencia de representante legal" (I am denied the presence of a legal representative).
6. Calculate the deadlines for challenging: The deadline to sue for dismissal is 20 working days (Saturdays, Sundays, and public holidays do not count). This is a strict limitation period (caducidad) and cannot be extended.

Practical examples of severance pay calculations

To understand how formal requirements and calculations influence the process, let us look at two common scenarios.

Example 1: Carlos's objective dismissal

Carlos has worked as an administrative assistant in a logistics company in Madrid since 1 January 2020. His pro-rated monthly salary (including extra payments) is €1,800 (which is equivalent to a daily salary of €60). On 15 May 2024, the company hands him an objective dismissal letter alleging economic reasons (continuous losses).

• Notice: The letter indicates that the employment relationship will end on 30 May 2024 (complying with the 15 days of legal notice).
• Calculation of service time: Carlos has worked exactly 4 years and 5 months (a total of 53 months).
• Calculation of severance pay (20 days per year):

$$\text{Severance Pay} = \frac{20 \text{ days}}{12 \text{ months}} \times 53 \text{ months} \times 60 \text{ €/day} = 5,300 \text{ €}$$

• Requirement of the letter: The company must transfer or hand him a cheque for €5,300 at the exact moment of delivering the letter. If it fails to do so, and does not properly justify the lack of liquidity in the text of the letter, the dismissal may be declared unfair in court, which would increase the severance pay to 33 days per year.

Example 2: Sofía's disciplinary dismissal that ends in unfairness

Sofía works as a shop assistant with a daily salary of €50 and 3 years of seniority (36 months). Her boss hands her a disciplinary dismissal letter alleging a "continuous decrease in performance", but the letter does not detail dates or sales figures to prove it. Sofía signs as "No conforme" and challenges the dismissal.

During the conciliation act, the company admits that the letter lacked sufficient motivation and accepts that the dismissal was unfair (despido improcedente).

• Calculation of severance pay for unfair dismissal (33 days per year):

$$\text{Severance Pay} = \frac{33 \text{ days}}{12 \text{ months}} \times 36 \text{ months} \times 50 \text{ €/day} = 4,950 \text{ €}$$

• Because Sofía signed as "No conforme" and acted within the 20 working days limit, she was able to claim and obtain the severance pay she was legally entitled to in the face of a deficient dismissal letter.

Mistakes you must avoid

Whether you are an employer or an employee, making certain mistakes during the dismissal process can have serious financial and legal consequences:

• For the employer: Drafting a generic or vague letter. Using standard internet templates without adapting them to the specific case, or using vague phrases such as "staff restructuring" without providing real economic data, almost guarantees that the dismissal will be declared unfair in court.
• For the employee: Signing "conforme" due to pressure. Signing the receipt of the dismissal letter or the finiquito without adding the note "no conforme" can be interpreted as a mutual acceptance of the termination, which makes a subsequent claim in court extremely difficult.
• For the employer: Failing to send the letter by burofax if the employee rejects it. If the employee refuses to sign or receive the letter in person, the company must immediately send it via Burofax (a secure postal service in Spain) with acknowledgement of receipt and certified text to the employee's address. Otherwise, it will not be possible to prove that the dismissal was communicated.
• For the employee: Letting the 20 working days deadline pass. The deadline to file the labor conciliation petition (papeleta de conciliación) is extremely short. Relying on verbal promises of reinstatement or deferred payment by the company without starting the legal process can cause the 20-day limit to expire, losing all rights to claim.

Frequently Asked Questions (FAQ)

What happens if I refuse to sign the dismissal letter?

Refusing to sign the dismissal letter does not prevent the dismissal from being valid. The company will simply find two witnesses (usually other employees or security staff) to sign attesting that they attempted to deliver the document to you and you refused, or they will send it to you by burofax. It is always recommended to sign, but clearly writing next to your signature: "No conforme" along with the date of the day.

Can I be dismissed while on sick leave (temporary disability)?

Yes, it is possible to be dismissed while on sick leave (baja médica), but the cause of the dismissal can never be the illness itself or the leave. The dismissal must be motivated by objective causes (economic, organisational) or disciplinary reasons unrelated to the worker's health. If it is proven that the real reason for the dismissal is the illness, the dismissal could be declared null and void (despido nulo) due to discrimination, forcing the company to reinstate you and pay you the back wages (salarios de tramitación).

What is the difference between the "finiquito" and the dismissal severance pay?

The finiquito (or settlement document) is the liquidation of the amounts that the company owes you for the work carried out up to the last day (salary of the current month, accrued and unused holidays, and the proportional part of the extra payments). All workers are entitled to the finiquito at the end of their contract. Severance pay (indemnización), on the other hand, is financial compensation for the loss of employment, and its amount depends on the type of dismissal (objective or unfair) and your seniority.

Am I entitled to unemployment benefits if I am dismissed on disciplinary grounds?

Yes. Regardless of whether the dismissal is objective or disciplinary (and even if the disciplinary dismissal is fully justified by serious behavior), you find yourself in a legal situation of unemployment. Therefore, you have the right to request unemployment benefits (el paro) from the SEPE (Spanish state employment service), provided that you meet the minimum required contribution period (360 days contributed in the last 6 years).

In summary

• The dismissal letter is a mandatory and constitutive document; verbal dismissal has no validity in Spanish Employment Law.
• It must clearly and in detail contain the facts motivating the decision and the exact date on which it will take effect.
• In an objective dismissal, it is mandatory to make the severance pay of 20 days per year available to the worker at the time of delivering the letter, respecting a 15-day notice period.
• Upon receiving the letter, the worker must always sign as "No conforme" to safeguard their right to claim.
• The non-extendable deadline to challenge any dismissal before the Mediation, Arbitration and Conciliation Service (SMAC) is 20 working days.

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.