Recently, some friends working in private hospitals have been talking about contracts and layoffs. It seems that many people don’t have a complete understanding of Spanish labor law, especially regarding severance pay for specific professions like healthcare workers. I’ve spent some time researching and consulting with a lawyer friend to put this information together. I hope it can help those in need, and I welcome everyone to discuss and add to it.
Types of Dismissal and Severance Pay Basics
First, it’s important to clarify that not all dismissals qualify for severance pay. In Spain, dismissals are primarily divided into two types: one is dismissal for objective reasons (despido objetivo), such as financial difficulties at the hospital or the elimination of a position due to technological updates. The other is disciplinary dismissal (despido disciplinario), for reasons like gross misconduct or unjustified absences. If it’s the latter and the company has solid proof, you are not entitled to any compensation. Today, we’ll focus on the former, the most common non-fault-based layoff, which is a key issue within Spanish healthcare.
The standard for calculating severance pay is: 20 days’ salary for each year of service, with a maximum cap of 12 months’ salary. The “salary” here refers to your daily wage, calculated by dividing your gross annual salary by 365. It’s important to note that “year” refers to a full year of service, with periods of less than a year calculated on a pro-rata basis.
How is it calculated? Let’s take an example
Let’s say a nurse has worked at a private clinic for 5 years and 6 months, with a gross annual salary of €30,000. Her severance pay calculation would be as follows:
- Calculate daily salary: €30,000 / 365 days ≈ €82.19/day
- Calculate total days of compensation: 20 days/year * 5.5 years = 110 days
- Calculate total severance pay: €82.19/day * 110 days ≈ €9040.9
This amount is the compensation the company must provide to you in the dismissal notice. Remember, the company must give you 15 days’ written notice in advance; otherwise, they will have to pay an additional 15 days’ salary as compensation.
| Years of Service | Compensation Standard | Maximum Compensation | Notice Period |
|---|
| Unlimited | 20 days’ salary | 12 months’ salary | 15 days |
| | | |
What if You Believe it’s an Unfair Dismissal?
Often, the “objective reasons” for a layoff don’t hold up. If you believe the company’s reasons for dismissal are insufficient, you can take them to a labor court. If the judge ultimately rules it as an unfair dismissal (despido improcedente), the situation changes significantly. The company will have two options: either reinstate you or pay higher compensation. The standard for this compensation is 45 days’ salary per year of service before February 12, 2012, and 33 days’ salary per year of service after that date. The total amount is capped at 720 days’ salary. For most of us expats who haven’t been working in Spain for a very long time, especially those who came for [Spanish medical education], the main standard to refer to is the 33 days/year one.
So, for all healthcare professionals in Spain, when you receive a dismissal letter, don’t just sign it. Especially avoid signing with “Conforme” (In Agreement). It’s best to sign with “No Conforme” (Not in Agreement) and write the date to reserve your right to contest it. If you have any doubts, the safest course of action is to consult a professional labor lawyer immediately.
