Relocation and Geographical Mobility in Spain: Your Rights
Has your company notified you that you must relocate to another office in a different province? Geographical mobility is one of the business decisions that has the most direct impact on a worker's personal, family, and financial life. Although Spanish legislation recognizes the employer's management power to organize their business activity, this right is neither absolute nor unlimited. As an employee, you have a solid legal protection network that defines what your company can demand of you, what financial compensation you are entitled to, and what options you have if you decide not to accept the change. In this detailed guide, we analyze your rights in the event of a relocation or temporary displacement, strictly based on current labor regulations in Spain.
The Legal Framework of Geographical Mobility in Spain
The regulation of geographical mobility in the Spanish legal system is mainly found in *Article 40 of 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** (hereinafter, the Estatuto de los Trabajadores* or ET / Workers' Statute).
For a company to unilaterally decide to change an employee's workplace, the law requires the existence of *economic, technical, organizational, or production causes (causas ETOP)*. In other words, the employer cannot order a relocation on a whim or as a disguised sanction; they must justify that the measure contributes to improving the company's competitiveness or overcoming economic difficulties.
Furthermore, the Estatuto de los Trabajadores distinguishes very clearly between two concepts that are often confused, but which have radically different legal and economic consequences: relocation (traslado) and temporary displacement (desplazamiento).
Relocation / Traslado (Permanent Change of Residence)
It is considered a relocation (traslado) when the change of workplace requires the worker to change their residence permanently or for a prolonged period. Legally, a relocation exists when the temporary assignment exceeds 12 months within a 3-year period.
Relocation can be of two types:
- Individual: It affects a specific worker, or a number of workers below the thresholds for collective relocation.
- Collective: It affects the entirety of a workplace (provided it has more than 5 workers), or when, within a period of 90 days, it affects at least:
- 10 workers in companies with fewer than 100 workers.
- 10% of the workforce in companies with between 100 and 300 workers.
- 30 workers in companies with more than 300 workers.
Temporary Displacement / Desplazamiento (Temporary Change of Residence)
It is considered a temporary displacement (desplazamiento) when the change of workplace is temporary and does not exceed the limit of 12 months within a 3-year period. In this case, it is not assumed that the change of residence is permanent, meaning the compensation and return rights are different.
Employee Rights in the Event of an Individual Relocation
If your company notifies you of an individual relocation (traslado) that forces you to change your residence, *Article 40.1 of the Estatuto de los Trabajadores*** grants you three clear and mutually exclusive options. You must carefully analyze which one best suits your personal situation:
1. Accept the relocation and receive compensation for expenses
If you decide to accept the new destination, you have the right to financial compensation for the expenses incurred due to the change. This compensation must cover not only your travel and moving expenses but also those of your dependent family members.
- Amount: The law establishes that the minimum amount must cover the entirety of the relocation expenses. However, the applicable Convenios Colectivos (Collective Bargaining Agreements) usually improve these conditions, setting additional allowances, housing search assistance, or payment for the first few months of rent.
2. Terminate the employment contract with the right to severance pay
If the relocation does not fit into your life or family plans, you have the right to unilaterally terminate your employment contract.
- *Severance Pay (Indemnización): You are entitled to severance pay of 20 days' salary per year of service, with periods of time shorter than a year pro-rated by months, up to a maximum limit of 12 monthly payments*.
- Unemployment Benefits: This contract termination is legally considered an involuntary state of unemployment (situación legal de desempleo). Therefore, you will have the right to apply for unemployment benefits (commonly known as el paro) through the SEPE (State Public Employment Service), provided you meet the contribution periods required by the Ley General de la Seguridad Social (LGSS / General Social Security Law).
3. Challenge the decision in court
If you believe that the company does not have justified economic, technical, organizational, or production causes to relocate you, or that the formal requirements have not been met, you can take the matter to court.
- Procedure: A lawsuit must be filed before the Juzgados de lo Social (Labor Courts) within a strict, non-extendable deadline.
- Effect: Filing the lawsuit does not suspend the execution of the relocation. This means that, unless the judge issues an injunction, you must report to the new destination while the lawsuit is being resolved. If the judge declares the relocation "unjustified", the ruling will recognize your right to return to your original workplace. If the company refuses, you can request the termination of the contract with the maximum compensation for unfair dismissal (despido improcedente), which is 33 days' salary per year worked (or 45 days for seniority acquired prior to February 12, 2012).
Employee Rights in the Event of a Temporary Displacement
In the case of temporary displacements (desplazamientos of less than 12 months in 3 years), the rules of the game change slightly under *Article 40.6 of the Estatuto de los Trabajadores***:
- Advance Notice: The company must notify you of the displacement sufficiently in advance. If the displacement is longer than 3 months, the mandatory minimum notice is 5 working days.
- Paid Leave: If the displacement exceeds 3 months, you are entitled to a paid leave of 4 working days at your original home for every 3 months of displacement, excluding travel days (the expenses of which are fully covered by the company).
- Compensation: In addition to your regular salary, you have the right to receive travel expenses and allowances for meals and accommodation (dietas) as specified by the applicable Collective Bargaining Agreement.
- Opposition Options: Unlike with permanent relocation, in a temporary displacement, the worker does not have the option to terminate their contract with a 20-day severance pay. Your only options are to accept the order or challenge it in court if you believe there are no justified reasons.
Practical Step-by-Step Procedures Upon Receiving a Relocation Notice
If you receive a geographical mobility notification letter, it is essential to act calmly and follow these steps to protect your rights and avoid missing legal deadlines:
- Receipt of the notification letter: When the company hands you the letter, sign it, writing the current date and the phrase "No conforme" (Not agreed) next to your signature in your own handwriting. This does not commit you to anything, but it secures your right to claim later if you detect irregularities. Always keep a copy signed and stamped by the company.
- Verification of the notice period: Check that the company has respected the legal notice period. For individual relocations, the notification must be made at least 30 days prior to its effective date.
- Analysis of the causes and the Collective Bargaining Agreement: Review the Convenio Colectivo applicable to your sector or company. Many agreements substantially improve the relocation severance pay or the moving allowances set by the Estatuto de los Trabajadores.
- Decision-making (within 30 days): Before the effective date of the relocation, you must formally communicate to the company in writing which of the three paths you choose: accept the relocation (negotiating expenses), terminate the contract (requesting the 20 days' salary per year severance pay), or challenge the decision.
- Pre-trial Conciliation and Judicial Challenge (if applicable): If you decide to challenge, you must file a mediation request (papeleta de conciliación) before the corresponding administrative service (such as the SMAC). Subsequently, if no agreement is reached, you must file a lawsuit in the Labor Court within 20 working days from the day after receiving the notification.
Practical Examples and Severance Calculations
To better understand how these options work in practice, let us analyze two common scenarios with concrete figures.
Example 1: María chooses to terminate her contract
María has worked as an administrative assistant for a service company in Málaga for exactly 5 years. Her pro-rated monthly salary (including extra payments, pagas extraordinarias) is €1,800. The company notifies her of a permanent relocation to the Madrid offices due to the closure of the Málaga branch.
María decides that, for family reasons, she cannot move to Madrid and chooses to terminate her contract:
- Daily salary calculation: €1,800 / 30 days = €60/day.
- Severance calculation (20 days per year): 5 years worked x 20 days = 100 days of severance pay.
- Total severance amount: 100 days x €60/day = €6,000 (exempt from personal income tax, IRPF).
- Result: María receives a net severance payment of €6,000, the company hands her the final settlement (finiquito), and she enters a legal state of unemployment, allowing her to immediately process her unemployment benefits with the SEPE.
Example 2: Carlos accepts the relocation and negotiates expenses
Carlos is a software developer in Valencia, and his company permanently relocates him to Barcelona. Carlos earns €2,500 per month and decides to accept the relocation. The applicable Collective Bargaining Agreement establishes that the company must cover moving costs and grant a one-time housing aid equivalent to two months of actual rent.
- Moving expenses (moving company invoice): €1,200 (paid directly by the company).
- Rent of the new apartment in Barcelona: Carlos rents an apartment for €950 per month.
- Housing compensation according to agreement: 2 months x €950 = €1,900.
- Result: Carlos relocates to Barcelona with all logistical costs covered and receives a payment of €1,900 to cushion the impact of rent costs in his new destination.
Mistakes You Must Avoid
- Failing to report to work at the new destination while challenging in court: Unless you obtain a court injunction suspending the relocation, you are obliged to report to the new workplace on the indicated date. If you fail to do so, the company could dismiss you for unjustified absences (disciplinary dismissal, despido disciplinario, without the right to severance pay or unemployment benefits).
- Signing the notification letter without adding "no conforme": Although it does not invalidate your right to claim, signing without reservations can be interpreted as a tacit acceptance of the conditions and the causes alleged by the company, complicating a future legal defense.
- Missing the expiration deadline to challenge: The deadline to sue for geographical mobility is only 20 working days (Saturdays, Sundays, and public holidays are not counted) starting from the day after the notification of the company's decision. If this deadline passes, you will lose any right to claim in court.
- *Confusing a relocation with a substantial modification of working conditions (MSCT): Although closely related, geographical relocation has its own legal challenge channel and specific rules under Article 40 of the ET, which differ from those of an MSCT* regulated under Article 41 of the ET.
Frequently Asked Questions (FAQ)
What is the minimum distance required for geographical mobility to exist?
Spanish law does not establish an exact kilometer distance in the Estatuto de los Trabajadores. However, court jurisprudence usually considers that geographical mobility exists when the new workplace is more than 30 kilometers away from the previous one, or when the round-trip travel time exceeds 25% of the working day, or if the cost of transport represents a disproportionate expense relative to the worker's salary.
What happens if my spouse also works for the same company and is relocated?
*Article 40.3 of the Estatuto de los Trabajadores*** protects family reunification. If one spouse is permanently relocated to another town, the other spouse—if they work for the same company and belong to the same professional group—will have a preferential right to relocate to the same destination, provided there is a vacancy in their category.
Do workers' representatives have any special protection?
Yes. Members of the works council (comité de empresa), staff delegates (delegados de personal), and union delegates (delegados sindicales) have priority of retention in their jobs in cases of relocation or displacement due to causas ETOP. The company must first relocate other workers of the same category before affecting a legal representative.
Can I refuse relocation if I have a reduced working day to care for a minor?
A reduction in working hours for legal guardianship (guarda legal—caring for children under 12 years old or persons with disabilities) grants special protection against unilateral decisions by the company. Although the company can attempt a relocation for very serious economic or organizational reasons, courts usually annul these relocations if they severely hinder family reconciliation, deeming them null and void for violating fundamental rights if they are not extremely justified.
Summary
- Key difference: Relocation (traslado) is permanent (more than 12 months in 3 years) and implies a change of residence; displacement (desplazamiento) is temporary.
- Three options in a relocation: Accept the change with expense compensation, terminate the contract with 20 days' salary per year of service (maximum 12 monthly payments), or challenge the decision in court.
- Notice period: The company must give at least 30 days' notice for individual relocations and 5 days' notice for temporary displacements exceeding 3 months.
- Deadline to sue: You have a strict expiration deadline of 20 working days from the notification to challenge the measure in court if you do not agree.
- Obligation to report to work: Unless there is an agreement or a court injunction, you must report to the new destination while the lawsuit is being resolved to avoid disciplinary dismissal.
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