Understanding Labor Mobility and Contract Termination in Spain
Labor Mobility in Spain
Functional Mobility
Within Professional Group
Movement within the same professional group or equivalent categories is permitted without requiring a specific cause.
Between Different Professional Groups
Movement between different professional groups or non-equivalent categories requires technical or organizational reasons and must be temporary. If the movement is expected to be permanent, unpredictable reasons are necessary.
Exceptional Mobility
This type of mobility involves significant changes to the employment contract or agreement and follows a specific procedure.
Geographical Mobility
Transfer
A definitive transfer of a worker to another work center requiring a change of residence due to economic, technical, organizational, or production reasons. The worker and their legal representatives must be informed 30 days in advance. If the transfer period is less than 30 days, prior consultation with legal representatives is required.
Employee Options:
- Accept the transfer with compensation for expenses.
- Challenge the transfer in court.
- Terminate the contract with compensation of 20 days’ salary per year of service, up to a maximum of 12 monthly payments.
Travel
A temporary transfer to another workplace. The employee must be notified at least 5 days in advance if the travel period exceeds 3 months.
Employee Options:
- Accept the travel with coverage of travel costs and allowances. The employee is entitled to 4 working days at their home location for every 3 months of travel.
- Challenge the travel in the same way as a transfer.
Substantial Changes to Working Conditions
Modifications affecting work hours, shift schedules, compensation systems, or work performance systems require economic, technical, organizational, or production-related reasons. The worker can terminate the contract with compensation of 20 days’ salary per year of service, up to 9 monthly payments.
Suspension of Contract
Temporary interruption of contractual obligations where neither the employer nor the employee works or receives payment.
Causes of Suspension
- Agreement between parties
- Contractual provisions
- Temporary disability
- Maternity, paternity, adoption, or foster care leave
- Holding public office
- Imprisonment (unless convicted)
- Disciplinary suspension
- Force majeure (economic reasons)
- Strike action
- Breach of notice period
Leave of Absence (Excedencia)
Suspension of the contract with reservation of the job position in most cases.
Types of Leave
Forced Leave
Due to appointment or election to public office or to exercise union representation. The period counts towards seniority, and the job position is reserved.
Voluntary Leave
At the employee’s request, requiring at least one year of service with the company. The leave period must be between 2 and 5 years, with the right to return to work within 4 years. The job position is not guaranteed.
Family Leave
To care for a child (biological, adopted, or foster child) or a second-degree family member. The leave period for childcare is up to 3 years from birth, adoption, or foster care placement. For family care, the period is up to 2 years. The leave counts towards seniority, and the employee has the right to vocational training during the second year. The right to return to a similar position within the same professional group is reserved.
Termination of Contract
Permanent cessation of the contractual obligations between the parties.
Causes of Termination
Completion of Contract Duration
For contracts with a duration of 1 year or more, a 15-day notice period is required.
Termination by Employee
- Resignation: The worker provides notice of their intention to leave, with the notice period determined by agreement or local custom. No compensation is due.
- Job Abandonment: The worker stops attending work with the intention of terminating the contract without providing notice. The employer may claim damages.
- Serious Breaches by Employer: Changes causing significant harm to the employee’s training, lack of or delayed payment of wages, or other serious breaches by the employer entitle the worker to compensation of 45 days’ salary per year of service, up to a maximum of 42 monthly payments.
Termination by Employer
- Disciplinary Dismissal: Dismissal due to employee misconduct, not entitling the employee to compensation. Causes include repeated and unjustified absences, indiscipline, verbal or physical offenses, abuse of trust, decreased performance, and substance abuse affecting work. The dismissal must be notified in writing, stating the specific and serious reasons. The employee can challenge the dismissal in court.
Court Decisions:
- Procedural Dismissal: The dismissal is deemed justified.
- Unprocedural Dismissal: The dismissal is not properly justified, and the employee may be reinstated or receive compensation of 45 days’ salary per year of service, up to a maximum of 42 monthly payments.
- Null Dismissal: The dismissal is based on prohibited discrimination or violation of rights.
- Objective Dismissal: Dismissal due to external circumstances that make it impossible to maintain the employment contract. Causes include employee incompetence, lack of adaptation to workplace changes, absenteeism, and the need to reduce staff due to economic, technical, organizational, or production reasons. The employee must be given 30 days’ notice and is entitled to compensation of 20 days’ salary per year of service, up to 12 monthly payments. The employer must demonstrate the existence of objective circumstances justifying the dismissal.
- Collective Dismissal: Dismissal of multiple employees due to economic, technical, organizational, or production reasons. A specific procedure involving consultation with employee representatives and approval from the labor authorities is required. Compensation is 20 days’ salary per year of service, up to a maximum of 12 monthly payments.
- Dismissal Due to Force Majeure: Dismissal due to unforeseen, unavoidable, and external events that prevent the continuation of the employment relationship (e.g., natural disasters). Compensation is 20 days’ salary per year of service, up to a maximum of 12 monthly payments.
Other Causes of Termination
- Death, retirement, or disability of the worker or employer. In case of death, retirement, or disability of the employer, the employee is entitled to compensation of 30 days’ wages.
Settlement Agreement
A document provided by the employer to the employee upon termination of the contract, outlining the terms of the termination and any compensation due. The employee’s signature acknowledges the termination of the contract.