Quick Overview
When terminated in Spain, you must receive written notification (carta de despido) and a final settlement (finiquito) showing severance, unused vacation, and pending salary. Register as a job seeker with SEPE within 15 days to claim unemployment benefits (prestación por desempleo), which pays 70% of your regulatory base for the first 6 months, then 50%. Severance depends on dismissal type: objective dismissal pays 20 days per year worked (max 12 months), while unfair dismissal pays 33 days per year (max 24 months). You have 20 working days to challenge the dismissal through mandatory SMAC mediation, then labor court if needed. Spain's strong employee protections mean most dismissals result in negotiated settlements.
Key Facts
Unemployment benefit
70% salary (6 months), then 50% - max 24 months
Severance (objective)
20 days per year worked (max 12 months pay)
Severance (unfair)
33 days per year worked (max 24 months pay)
Registration deadline
15 days to register with SEPE for unemployment
Challenge deadline
20 working days to file SMAC conciliation claim
Key agencies
SEPE (unemployment), SMAC (mediation), Juzgado Social (labor court)
How It Works
Lost Job on Work Visa in Spain
Spanish labor law provides strong employee protections with mandatory severance and unemployment benefits. When dismissed, you receive a carta de despido (dismissal letter) stating the reason and effective date - never sign without understanding it. The employer provides a finiquito (final settlement document) itemizing severance (indemnización), unused vacation days, pending salary, and proportional extra pays. Within 15 days, register as a job seeker with SEPE (Servicio Público de Empleo Estatal) to claim unemployment benefits, requiring at least 12 months of Social Security contributions in the last 6 years. Unemployment pays 70% of your regulatory base for the first 6 months, then 50%, with durations from 4 months (1 year contributions) to 24 months (6+ years). Dismissal types affect severance: objective dismissal (despido objetivo) for economic or organizational reasons pays 20 days per year worked with 12-month maximum; unfair dismissal (despido improcedente) pays 33 days per year with 24-month maximum; disciplinary dismissal (despido disciplinario) pays nothing if valid but converts to unfair if unjustified. Challenge a dismissal by filing a papeleta de conciliación at SMAC (mandatory mediation) within 20 working days, then labor court (Juzgado de lo Social) if no agreement. Most cases settle before or during court proceedings.
What to do right when you're let go
Get written dismissal letter (carta de despido)
Request formal written notification with reason and date.
Review and sign finiquito (final settlement)
Document showing final payments owed to you.
Return company property / collect belongings
Return laptop, cards, etc. Collect personal items.
Register for benefits and assess options
Register as job seeker (SEPE)
Register with public employment service.
Apply for unemployment benefit (paro)
Claim your unemployment benefit.
Assess if dismissal is legal
Determine if you can challenge the dismissal.
Legal challenges if applicable
File conciliation claim (papeleta SMAC) if challenging
Mandatory mediation attempt before court.
File labor court claim if no agreement
Take case to court if mediation fails.
Job search and maintaining benefits
Active job search
Search for new employment.
Attend SEPE appointments
Mandatory check-ins with employment office.
Consider retraining programs
Free courses offered through SEPE.
Lost Job on Work Visa Costs in Spain (2025)
Within 15 days of dismissal
To assess dismissal validity
Mandatory conciliation process
No court fees for employment cases
If challenging dismissal, success-based options available
Work history document from Social Security
Free legal advice if union member
| Service | Cost | Notes |
|---|---|---|
| SEPE unemployment registration | Free | Within 15 days of dismissal |
| Initial lawyer consultation | €50-150 | To assess dismissal validity |
| SMAC mediation filing | Free | Mandatory conciliation process |
| Labor court filing | Free | No court fees for employment cases |
| Lawyer fees (labor court) | €800-2,500 | If challenging dismissal, success-based options available |
| Vida laboral certificate | Free | Work history document from Social Security |
| Union legal support | €0 (members) | Free legal advice if union member |
| Total estimate | €0-150 if accepting dismissal / €800-2,500 if challenging through court | |
*Most dismissal challenges are resolved at SMAC mediation (free) with negotiated settlements. Court cases have no filing fees. Many lawyers work on contingency (percentage of settlement). Union members receive free legal representation. Prices current as of January 2025.
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