Contact in Spain
Spain: +34 932 20 44 40
UK: 0800 098 8033
US: +1 415 651 8449

Severance Pay in Spain


Unfortunately, for many non-Spanish living and working in Spain, they find employment – at least initially – in jobs with irregular working patterns in hospitality and other industries dependant upon seasonal fluctuations such as tourism. This can lead to rather higher frequencies of redundancies as a result of the precarious nature of such businesses.


Severance Pay in Spain

Severance Pay in Spain

If you should find yourself in the situation of having your employment contract terminated, you will find that the process is quite opaque and certainly will be different from what you may have expected in your home country, as in many cases severance pay in Spain can be tricky. Below you will find some information on steps to take and situations to avoid – but, as in all cases of legal doubt, it is always best to consult an English-speaking employment lawyer in Spain so that you can be sure your rights are protected.


Severance Pay in Spain: Key concepts to be particularly careful about

  • Proportional part of extra bonus payment (summer and Christmas) in case they have not been prorated.
  • Accrued and not enjoyed vacations.
  • Payment of days of notice not fulfilled.
  • Severance pay (except disciplinary dismissal and resignation of the worker).
  • Payment of overtime work (if you have done it).


  1. Did you know that in certain situations, the worker may voluntarily terminate his contract with the right to severance pay? In cases of serious breach by the employer of his obligations, non-payment of wages or continuous delays in payment of wages.
  2. When does the severance pay have to be paid? The severance pay has to be paid on the date of the dismissal. The employer cannot impose a deferment of the severance pay.
  3. Bear in mind that when the amounts to be paid do not exceed the maximum cash payments. It is very usual that the settlement document contains the formula “I have received in this act the amount of …”
  4. Pay Attention to the date of the settlement document. The employer must always give you a copy of it. Demand it, if necessary.
  5. Pay Attention to the date of notice. In case you are notified in advance, with the notice letter, the employer must give you the final settlement document including all the amounts owed as of the date of termination.
  6. Are you sure you have not done Overtime Work? In case of termination of your work contract, review in the applicable framework labour agreement the maximum work hours of a year… Make a proration based on the time worked … Did you get less than you should have based on the number of hours you have worked? Well the difference is overtime. This is usual with irregular, daily work hours.
  7. Of course, if you have the slightest doubt you may have, sign as “not in compliance”.
  8. And, do not forget to date and add with a pen “AMOUNTS PENDING OF REVIEW

Given the complexity of the situation, if you are facing termination of your employment contract, it is a good idea to speak with a lawyer so they may review the situation and offer advice that could be worth a substantial sum of money.

You may be interested in the following service...

Client testimonials

"Inma was very professional, very helpful and guided me through the Spanish legal process simply and clearly. She fought my corner with a satisfactory outcome.

Constant contact throughout the case on both a professional and personal level, asking about my mother who is unwell, showed compassion.

I would recommend Inma to anyone, English or Spanish who needs help with legal advice.

Nothing could have been done better. Excellent."

Lesley King (Jan 11, 2020)

Employment Law Consultation

Available in the following locations: Barcelona, Cadiz, Castellon, Córdoba, Fuengirola, Gandia, Girona, L`Eliana, Las Palmas, Murcia, Orihuela Costa, Oviedo, Palma de Mallorca, Puerto del Rosario, Puzol, Seville, Torrevieja, Valencia, Vigo.

* If your local town is not listed, a lawyer from our nearest office will be happy to assist you.


1Who is this Service for?

Both employers and employees can sometimes require expert advice on their legal position following an incident in the employment relationship between the two parties.

Labour law traditionally has an enormous number of rules and regulations and requires a lawyer who specialises in the area and who is up-to-date with any recent developments in legislation and jurisprudence.

2What does this service consist of?

  • An initial discussion with an experienced English-speaking lawyer to understand the nature of the dispute
  • The lawyer will provide expert advice and recommended next steps to take, depending on the circumstances as presented
  • As required, negotiation with the other party
  • As required, representation in employment tribunals.
Support services

3Free Support Services Included

When combined with the free and innovative Advocate Abroad support services you can be sure that you are obtaining completely transparent legal services from registered and regulated English-speaking lawyers abroad.These support services include:

  • Verification of the regulatory status of your professional.
  • Fees as recommended by the Local Professional Body
  • Fees specified in advance and legally guaranteed.
  • Service levels agreed in advance and guaranteed.
  • All professionals must hold professional indemnity insurance.
  • Professionals' proficiency in English monitored.
  • Continuous quality controls and reviews.

Why choose Advocate Abroad? Message
Established more than
10 years ago
Present in 20
European Countries
Over 30,000 client enquiries
successfully managed