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Lost Job on Work Visa

Lost your job on a work visa? Understand how it affects your immigration status, severance pay (finiquito), unemployment benefits for expats, and how long you can stay.

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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)

SEPE unemployment registrationFree

Within 15 days of dismissal

Initial lawyer consultation€50-150

To assess dismissal validity

SMAC mediation filingFree

Mandatory conciliation process

Labor court filingFree

No court fees for employment cases

Lawyer fees (labor court)€800-2,500

If challenging dismissal, success-based options available

Vida laboral certificateFree

Work history document from Social Security

Union legal support€0 (members)

Free legal advice if union member

Total
€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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