Dismissal and final settlement (finiquito) in Spain: what to do
Dismissed in Spain and handed a final settlement (finiquito) to sign? Don’t rush to sign it “conforme”. The dismissal (despido) and the final settlement (finiquito) are different things: a dismissal can be ruled justified (procedente), unfair (improcedente) or void (nulo), while the final settlement (finiquito) is what you are already owed: salary, proportional bonuses and unused holiday. The two have different clocks: challenging the dismissal itself is 20 working days (caducidad), while claiming amounts missing from the finiquito generally follows the one-year wage limitation (ET art. 59). Below: the types of dismissal, what you are owed, how not to lose your rights, and where to file.
Dismissal (despido) vs final settlement (finiquito)
Dismissal (despido) is the termination itself; the final settlement (finiquito) is the final-settlement document at termination.
A dismissal can be disciplinario (for misconduct), objetivo (economic/other causes) or colectivo (an ERE).
A court can rule it procedente (justified), improcedente (unfair) or nulo (void, e.g. discrimination, pregnancy).
The final settlement (finiquito) covers what you have already earned: salary, proportional extra payments (pagas extra) and unused holiday — that is not the same as dismissal compensation (indemnización).
Who this applies to
- Any employee (por cuenta ajena) being dismissed — whatever your nationality.
- Anyone handed a final settlement (finiquito) to sign on leaving.
- Anyone unsure about the dismissal cause or whether the settlement is correct.
- People dismissed involuntarily are usually entitled to unemployment benefit (paro).
NAVISort out my unpaid salary — how to claim it in time
NAVI will prepare a demand to the employer.
Your rights and severance
- The right to a dismissal letter (carta de despido) stating the cause and the date.
- Objective dismissal (despido objetivo): severance of 20 days’ pay per year worked, capped at 12 monthly payments.
- Unfair dismissal (despido improcedente): 33 days per year, capped at 24 monthly payments (older contracts use a 45/33 hybrid).
- Void dismissal (despido nulo): reinstatement plus back pay for the proceedings (salarios de tramitación).
- The right to sign the final settlement (finiquito) “no conforme” and to challenge both the dismissal and the amount.
Order and timing
- You have 20 working days before the challenge right expires (caducidad) — a very short window, don’t delay.
- First a conciliation form (papeleta de conciliación) at the SMAC, then, if there is no agreement, a claim (demanda) at the Social Court (Juzgado de lo Social).
- A final settlement (finiquito) can be challenged separately if the amounts are understated.
- Register for unemployment benefit (paro) at the SEPE within 15 working days after the last day worked; if the company paid unused holiday, the period starts after the equivalent holiday period ends.
What to prepare
- The dismissal letter (carta de despido) and your employment contract.
- Your recent payslips (nóminas) and work-history report (informe de vida laboral).
- The final-settlement (finiquito) text and a calculation of what you are owed.
- Any evidence on the cause (messages, rotas, witnesses) if it is disputed.
Step by step
- Ask for the dismissal letter (carta de despido) and the final settlement (finiquito) in writing.
- Don’t sign the final settlement (finiquito) as “recibí y conforme” without checking — you can write “no conforme” or only “recibí”.
- Work out what you are owed: salary, bonuses, holiday, dismissal compensation (indemnización).
- File a conciliation form (papeleta de conciliación) at the SMAC within 20 working days.
- If there is no agreement, file a claim (demanda) at the Social Court (Juzgado de lo Social); meanwhile, register for unemployment benefit (paro).
Common mistakes
- Signing the final settlement (finiquito) “conforme” — it often means waiving your claims.
- Missing the 20 working days to challenge — the right lapses (caducidad).
- Not asking for the dismissal letter (carta de despido) — without it the dismissal is harder to contest.
- Confusing the final settlement (finiquito) with dismissal compensation (indemnización) — they are different amounts.
- Not registering for unemployment benefit (paro) in time.
Dispute and claim
- If a court rules the dismissal unfair (improcedente), the company normally chooses: reinstate you or pay compensation (indemnización) at 33 days/year; if the dismissed person is a legal employee representative or union delegate, that person chooses.
- If it is void (nulo), reinstatement is mandatory, plus back pay for the proceedings (salarios de tramitación).
- An understated final settlement (finiquito) is challenged with a separate claim for the difference.
- Keep the letter (carta), payslips (nóminas), final settlement (finiquito) and filing proofs (justificantes) — you need them at the SMAC and court.
Get help with your dismissal and final settlement (finiquito)
Tell us your situation: how you were dismissed, whether there was a letter (carta) and final settlement (finiquito), and what it says. NAVI tells you whether the dismissal is fair, what you are owed, how not to lose the right to challenge, and how to file at the SMAC.
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Frequently asked questions
How many days to challenge a dismissal?
20 working days from the dismissal date before the right expires (caducidad). It is a hard window — miss it and the right is lost.
Should I sign the final settlement (finiquito)?
You can sign “no conforme” or write only “recibí” — that way you receive what is owed but keep the right to challenge.
What is the difference between unfair and void dismissal?
Unfair (improcedente) means 33 days/year or reinstatement, normally at the company’s choice; legal employee representatives and union delegates choose themselves. Void (nulo) means mandatory reinstatement plus back pay.
How much is severance for unfair dismissal (improcedente)?
33 days’ pay per year worked, capped at 24 monthly payments (older contracts use a hybrid).
Am I entitled to unemployment benefit (paro)?
Usually yes if the dismissal was not voluntary and you meet the contribution requirement; apply at the SEPE within 15 working days after the last day worked or after paid unused holiday ends.
The final settlement (finiquito) understates the amount — what now?
Sign “no conforme” and claim the difference; NAVI helps you calculate and draft the claim.
I was dismissed without a dismissal letter (carta de despido)?
Demand a written letter; a verbal dismissal with no cause is usually contested as unfair (improcedente).
Does this depend on my nationality?
No. Labour rights in Spain are the same for all employees, migrants included.
Official sources
- Workers’ Statute, art. 53 — objective dismissal
- Workers’ Statute, art. 55 — disciplinary dismissal form/effects
- Workers’ Statute, art. 56 — unfair dismissal
- Workers’ Statute, transitional provision 11 — 45/33 calculation
- LRJS, art. 65 — conciliation and suspension of expiry
- LRJS, art. 103 — dismissal challenge deadline
- LRJS, art. 121 — objective-dismissal challenge deadline
- SEPE — contributory benefit and application deadline
Calculations and deadlines depend on your contract and case — check with NAVI or a union/SMAC. The 20 working days are a caducidad, so don’t delay.
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- Legal basis, deadlines and figures re-checked against official sources.
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This guide is general information about Spanish law, not a legal opinion on your case. Rules change and outcomes depend on your own facts and documents — check your situation before you act on it.
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