Unpaid Wages in Spain: How to Claim Your Salary as an Expat

🇪🇸 Read the original in Spanish

Working and not receiving your agreed-upon salary is one of the most stressful and destabilising situations any worker in Spain can experience. Salary is not just financial compensation, but the fundamental means of survival for families, which is why the Spanish legal system protects this right as a matter of priority. If you find yourself in this situation, it is vital that you know your rights, the legal deadlines to act, and the exact steps you must take to recover your money without making mistakes that could jeopardise your claim.

The legal framework: What does the law say about unpaid wages?

Spanish legislation is highly protective of workers' salaries. The reference regulatory framework is mainly based on the 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, Estatuto de los Trabajadores or ET / Workers' Statute), as well as on the Ley 36/2011, de 10 de octubre, reguladora de la jurisdicción social (LRJS / Law Regulating Social Jurisdiction).

• The obligation of timely payment: *Article 4.2.f) of the Estatuto de los Trabajadores establishes the timely receipt of agreed or legally established remuneration as a basic right of the worker. Likewise, Article 29.1 of the ET* determines that the liquidation and payment of the salary shall be made punctually and documentarily on the agreed date and place, or in accordance with custom and practice.
• Late-payment interest: The law penalises delays in payment. Article 29.3 of the ET establishes that the interest for late payment of salary shall be 10% annually of the amount owed. This interest accrues automatically from the moment the amount should have been paid.
• Termination of the contract by the worker's choice: Article 50.1.b) of the ET empowers the worker to request the termination of their employment contract before the juzgados de lo social (social courts) due to "the non-payment or continuous delays in the payment of the agreed salary". In this case, the worker is entitled to the same compensation as if it were an unfair dismissal.

What is considered a "continuous delay" or "non-payment"?

Not just any one-off delay of a few days allows you to request the termination of the contract with the right to compensation, although it does allow you to claim the money owed. The jurisprudence of the Tribunal Supremo (Supreme Court) has gradually outlined what constitutes a serious breach of contract by the employer:

1. To claim the amounts owed: You can claim from the very first day of delay. If the usual pay day is the 30th of each month and you have not been paid by the 5th of the following month, there is already a claimable non-payment.
2. To terminate the contract (Article 50 ET): The Tribunal Supremo requires that the non-payment or delay be serious and continuous. Generally, the non-payment of 3 full monthly payments, or continuous and repeated delays over a period of between 4 and 6 months (even if the company pays in dribs and drabs but always with an accumulated delay), is considered sufficiently serious.

Step-by-step guide: How to claim your unpaid wages

If the path of dialogue with the company has been exhausted, you must initiate the formal claim process. It is essential to follow the legally established order in Spain so as not to lose your rights.

Step 1: Gathering evidence and information

Before starting any procedure, gather all documentation that proves the employment relationship and the lack of payment:

• Employment contract and any extensions.
• The latest nóminas (payslips), especially those that have not been paid to you.
• Daily working hours record (clock-in/out logs).
• Bank statements proving that the transfer has not been received on the corresponding dates.
• Communications with the company (emails, WhatsApp messages, or letters where you claim payment or where the company admits the debt).

Step 2: Submission of the Papeleta de Conciliación

This is a mandatory step in Spanish procedural law before you can go to court. It consists of submitting a document called a "Papeleta de Conciliación" (conciliation petition) before the Servicio de Mediación, Arbitraje y Conciliación (SMAC / Mediation, Arbitration, and Conciliation Service) of your Comunidad Autónoma (Autonomous Community).

• What must it contain? Your personal details, the company's details, your seniority, professional category, monthly salary with prorated extra payments (pagas extras), a detailed breakdown of the concepts and amounts owed to you, and your signature.
• Suspensive effect: The submission of the papeleta interrupts the statute of limitations period for claiming.
• The conciliation act: Both parties will be summoned to an agreement hearing. If the company appears and recognises the debt, a payment agreement (with executive force) can be signed. If the company does not appear or there is no agreement, an act of "sin avenencia" (without agreement) will be recorded, leaving the judicial path open.

Step 3: Filing the Lawsuit before the Juzgado de lo Social

If the conciliation act ends "sin avenencia" or the company does not show up, the next step is to draft and present a payment claim lawsuit before the Juzgados de lo Social.

• The lawsuit will reproduce the facts set out in the papeleta de conciliación, attaching the certificate from the SMAC.
• A trial will be held where the judge will issue a ruling ordering the company to pay the amounts owed plus the 10% late-payment interest.

Step 4: Execution of the ruling and recourse to FOGASA

If the judge rules in your favour and the company still does not pay voluntarily, you must request the "execution of the ruling". If during this process it is confirmed that the company is insolvent or is in bankruptcy proceedings (concurso de acreedores), the Court will issue a declaration of insolvency.

With this declaration, you can turn to the Fondo de Garantía Salarial (FOGASA) (Wage Guarantee Fund), an autonomous body attached to the Ministry of Labour that is responsible for paying workers the salaries and compensation pending payment due to employer insolvency, within certain legal limits.

Deadlines, amounts and key figures you must know

The time factor is the most critical element in Spanish labour law. A mistake in calculating deadlines can mean the permanent loss of your right to collect.

• Deadline to claim wages: The statute of limitations period is 1 year (pursuant to Article 59.1 of the ET). This means that you can only claim wages accrued in the last 12 months prior to the submission of the papeleta de conciliación. What you do not claim within that period prescribes and is lost.
• FOGASA coverage limits for wages: FOGASA does not pay unlimited amounts. The maximum limit it pays for outstanding wages is twice the daily Salario Mínimo Interprofesional (SMI / Minimum Interprofessional Wage), with prorated extra payments, for a maximum of 120 days.
• FOGASA coverage limits for compensation: In the event that you also claim the termination of the contract due to non-payment, the limit of the compensation covered by FOGASA is one year's salary, and the daily base salary cannot exceed twice the SMI.

Practical examples of claims and calculations

To better understand how deadlines, interest, and FOGASA intervention work, we analyse two common scenarios.

Example 1: Claim for payment with late-payment interest

Carlos works as a web developer and receives a gross monthly salary of €2,000. The company owes him the payslips for January, February, and March 2024. Carlos submits the papeleta de conciliación on 15 April 2024.

• Principal owed: 3 months x €2,000 = €6,000.
• Late-payment interest (10% annually): When claiming judicially, 10% per year is applied to the outstanding balance. If the judicial process takes one year until the ruling, the accumulated interest will be €600 (10% of €6,000).
• Total to receive: €6,600.

Example 2: Company insolvency and payment by FOGASA

Elena works in a hospitality business with a daily salary of €60 (including extra payments). The company goes bankrupt and owes her 150 days of salary. After the trial, the court declares the company insolvent. Elena turns to FOGASA.

• Daily limit of FOGASA (year 2024): Twice the daily SMI with prorated extra payments is approximately €75.34. Since Elena's salary (€60) is below this limit, her real salary of €60 is used as the base.
• FOGASA day limit: FOGASA only covers a maximum of 120 days of salary.
• Calculation of the payment: Although the company owes her 150 days, FOGASA will only pay her 120 days x €60 = €7,200. The remaining 30 days will remain as an uncollectible debt of the insolvent company unless future assets of the company are located.

Mistakes you must avoid when facing unpaid wages

• Letting time pass without claiming due to "good words" from the company: The 1-year deadline cannot be extended. Many employers promise future payments to let the months pass and ensure that the oldest monthly payments prescribe.
• Unilaterally stopping going to work: Even if you are not being paid, you must never abandon your job on your own initiative before having a court ruling terminating the contract. If you stop attending, the company could dismiss you for job abandonment (disciplinary dismissal), losing your right to compensation and unemployment benefits (paro).
• Signing payslips or receipts of payment without having received the money: Never sign the "received" section of a payslip or a settlement (finiquito) if you have not seen the money actually deposited in your bank account. If they force you to sign to hand over the document, write in your own handwriting next to your signature the phrase: "No recibido" (Not received) or "No conforme" (Not agreed) along with the day's date.
• Not suing the company administrators if applicable: If the company is a Sociedad Limitada (S.L. / Limited Liability Company) and is in a state of abandonment or de facto closure without orderly liquidation, you can combine the payment claim action against the company and demand the joint and several liability of the administrators for failing to promote the legal dissolution of the entity.

Frequently Asked Questions (FAQ)

Can I collect unemployment benefits if my company does not pay me but I am still registered as employed?

Not directly. To access unemployment benefits (paro), the employment relationship must be terminated. To do this, you must file a lawsuit for termination of contract under Article 50 of the ET (for serious non-payments). Once the judge issues the ruling terminating the employment relationship, you will be in a legal situation of unemployment and can request paro, in addition to the corresponding compensation.

What happens if the company declares bankruptcy?

If the company enters bankruptcy proceedings (concurso de acreedores), the claim process changes. Individual payment lawsuits are usually suspended, and you must communicate your credit (the debt they have with you) to the Bankruptcy Administrator designated by the commercial court. Salary claims for the last 30 days of actual work (up to twice the SMI) have super-privileged status and are paid in preference over any other debt.

Can I claim if I work "en negro" (off the books, without a contract or registration with Social Security)?

Yes, but the process is more complex. First, you must file a joint lawsuit for "recognition of the employment relationship" and a payment claim. You must provide solid proof that you actually worked there (witnesses, messages, uniforms, informal transfers, photographs). In these cases, it is highly recommended to request the presence of the Inspección de Trabajo (Labour Inspectorate) so they can draw up a report on the irregular situation.

Do I have to pay court fees to sue my company?

No. In the social jurisdictional order in Spain, workers are exempt from paying court fees. Access to labour justice is free for employees. You will only have to pay the fees of the professional (lawyer or graduado social / labour relations specialist) you decide to hire for your defence, although you can appear by yourself at the conciliation hearing.

Summary

• The deadline to claim any unpaid salary is 1 year from the moment it should have been received.
• Delay in payment generates an automatic late-payment interest of 10% annually.
• In the event of serious and continuous non-payments (minimum 3 months), you can judicially demand the termination of your contract with the right to the maximum compensation for unfair dismissal and access to paro.
• Never stop going to your workplace due to non-payments before having a judicial resolution authorising you to do so or an injunction from the judge.
• FOGASA guarantees the payment of outstanding salaries and compensation under specific quantitative limits in the event of company insolvency.

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.