Calculating your dismissal compensation:
Compensation for dismissal is a right that employees are entitled to when their contract is terminated without justified cause or by a unilateral decision of the company. There are different types of dismissal, each with specific legal implications that determine how compensation is calculated.We strongly recommend seeking our assistance to ensure the calculation is accurate and takes into account your full remuneration package — including bonuses, variable pay, benefits in kind, overtime, and any other elements that must be considered when computing the final figure.
Written by Josep Conesa
Employment and insolvency lawyer
Calculate your dismissal compensation
official link for calculating dismissal compensation
Official dismissal dismissal compensation calculator
Types of dismissal that give rise to compensation
unfair dismissal COMPENSATION
A dismissal is deemed unfair when there are no justified objective grounds to support it. This type of dismissal carries the maximum compensation an employee can receive.
FAIR disciplinary dismissal COMPENSATION
FAIR objective dismissal COMPENSATION
This applies where the company cites economic, technical, organisational or production-related grounds. This type of dismissal carries a specific statutory compensation amount.
Excel spreadsheet for calculating collective dismissal payments
We also offer an Excel-based calculator, useful for computing multiple compensation amounts simultaneously. It covers both the 45- or 33-days-per-year calculation (capped at 42 or 24 months) and the 20-days-per-year calculation (capped at 12 months) for a fair objective dismissal, as well as a free-entry compensation calculation.
Download the Excel spreadsheet free of charge using this form:
Case law on the calculation of dismissal compensation:
In its ruling of 18 February 2016, Appeal no. 3257/2014, the Supreme Court clarified how compensation is to be calculated following the labour market reform.
Under the Fifth Transitional Provision of Law 3/2012 (LA LEY 12140/2012) (now the Eleventh Transitional Provision of the Consolidated Text of the Workers' Statute, enacted by Royal Legislative Decree 2/2015 of 23 October), a distinction must be drawn between two periods of service, with 12 February 2012 acting as the dividing date.
For the period prior to 12 February 2012, a severance rate of "45 days' salary per year of service applies to the time worked before that date, with periods of less than one year pro-rated by months". This amount shall apply as the maximum severance entitlement, and in no case may it exceed 42 monthly payments.
Even where the absolute cap of 42 monthly payments has not yet been reached, service accrued after 12 February 2012 cannot increase the cap established by the 2012 reform (720 days, or 24 months). In other words, once the 2012 legislative reform (Royal Decree-Law 3/2012, subsequently confirmed by Law 3/2012) came into force, any further service by the employee has no effect on increasing the severance cap by virtue of the Fifth Transitional Provision.
It remains to be seen how long these changes will remain in force in our legal system, as a change of government may well trigger new legislation on the matter — though what can be said with certainty is that the current provision could be more clearly drafted. Four years have passed since it came into force, and the Supreme Court is still clarifying how it should be applied.
What should you do if you are facing dismissal?
- Keep all documentation provided by the company.
- Do not sign any agreement before seeking advice from an employment lawyer.
- Contact our specialists to assess your case.
Find out more here
Dismissal Compensation Lawyers in Barcelona
At our firm, we understand how difficult it can be to face dismissal. We are here to guide you through every step of the process and ensure you receive everything you are legally entitled to.
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