Thinking about using an Employer of Record in Spain? Discover why that's not a good idea. According to the Labour Code, an employment contract concluded for an indefinite term may be terminated in the following ways:. Any documents related to the termination of an employment contract by either party must be made in writing. Employees thinking that they have been dismissed unfairly or unlawfully can file an appeal with the competent court and request to be reinstated at work while being compensated for the period of unemployment caused by the dismissal.
Employers shall inform employees of their rights in this matter while notifying of the termination. Employees may request compensation for their damages if the termination is declared unlawful.
In case of the unlawful termination, employees may choose between the following:. If the employee claims that certain rights of the employee as a person have been violated because of the unlawful termination of the employment, the employee may file for compensation for non-material damages. In claiming non-material damages, no harm beyond infringement has to be proved with no amount of damage being proved.
The court determines the amount of compensation in one sum by considering the gravity of the infringement. The employment relationship may, at any time, be terminated by mutual agreement between the employee and the employer. The Labour Code does not contain explicit provisions regarding termination by mutual agreement.
The parties are free to set out the relevant terms of the termination, such as the date of the termination, the amount and form of compensation payable to the employee, etc. Such mutual agreement is less likely to bring legal disputes or to be challenged at a court of law.
