Termination of employment advice & management

Q: What’s the difference between an unfair and a null dismissal?

An unfair dismissal breaches either the formal procedure or lacks sufficient cause.A null dismissal violates fundamental rights—for example, dismissals based on discrimination or during protected situations like maternity leave.Unfair dismissal usually means financial compensation; null dismissal typically requires reinstatement and back pay.

Q: Do I always have to pay compensation?

That depends.Objective dismissals require 20 days’ salary per year worked (up to 12 months). Unfair dismissals require 33 days per year (up to 24 months).Disciplinary dismissals, if justified, require no severance—although the employee must always receive their final settlement (accrued wages, unused holidays, prorated bonuses, etc.).

Q: Can I dismiss an employee during medical leave or maternity leave?

Technically yes, but it’s highly restricted.You must prove the dismissal is unrelated to the protected situation. Otherwise, it will likely be declared null, requiring full reinstatement and back pay. These are sensitive cases, and you should always act with extreme legal care and advice.

Avoid legal risks and protect your business when terminating an employee

In Spain, a poorly handled employee termination can cost you far more than just severance: unfair dismissal claims, court orders for reinstatement, reputational damage, or even inspections from labour authorities.

At GCO, we take care of the entire termination of employment process—discreetly, legally, and with full legal certainty.

We draft the letters. We calculate the compensation. We represent you at the CMAC or in court, if necessary.

You make the decision—we execute it properly.

Termination of employment advice & management

A poorly managed termination can be extremely costly

About to terminate an employment contract? Make sure you’re doing it by the book.

Are you certain whether the case qualifies as a disciplinary or objective dismissal?
Do you know how to properly document the decision to avoid legal challenges?
Have you calculated the severance and final pay correctly under the applicable collective agreement and worker’s seniority?
Do you know what to do if the employee challenges the dismissal through CMAC or court action?
Are you confident your HR team is covering all legal requirements without overlooking key details?

Ending an employment contract is far more than handing over a letter. Any procedural error could lead to a ruling of unfair or null dismissal, with major financial and reputational consequences for your company.

Termination of employment advice & management

Avoid legal pitfalls: assess before you act

Many legal disputes stem from poor planning. At GCO, we assess each case in depth to determine whether the dismissal is legally sound, what type applies (objective or disciplinary), and what documentation or prior steps are needed.

We advise you on identifying valid causes (poor performance, absenteeism, organisational changes, etc.), the legal strategy, and the required evidence. Getting it right from the beginning is key to avoiding complications down the line.

Termination of employment advice & management

Save time and money: we handle the paperwork

Even when a dismissal is legally justified, a single error in documentation can undermine the entire process. Incomplete justification, incorrect severance calculations, missed deadlines, or procedural flaws can lead to a ruling of unfair dismissal—with all the associated financial consequences.

At GCO, we take care of the entire administrative process. This includes drafting a legally sound termination letter, calculating the final settlement (wages, holidays, bonuses, and statutory compensation), and ensuring all communications are submitted to the relevant authorities—Social Security, SEPE, and more.

Termination of employment advice & management

Defend your decision: expert negotiation & representation

When a termination is challenged—whether through CMAC (the mandatory conciliation process) or a formal labour claim—how you respond is critical.

At GCO, we act swiftly to defend your company’s position. We represent you at the CMAC stage, helping you negotiate fair and legally safe settlements when appropriate. If no agreement is reached, we prepare and lead your defence before the Labour Court.

Not sure where to start with an employee termination?

Let’s fix that—before it becomes a problem.

Termination of employment advice & management

Why work with GCO?

Think a dismissal is just paperwork? It’s not. And getting it wrong has consequences.

45+ years advising companies – We know how to handle every scenario.

Experts in Spanish Labour Law – We spot risks before they escalate.

Strategic approach, not just documents – We protect your reputation and internal culture.

Experienced with international clients – We understand the common mistakes.

End-to-end support – From case assessment to legal resolution.

Termination of employment advice & management

“Can’t our HR Department handle it?”

Maybe—until they can’t.

Your internal team can manage day-to-day matters, but employee termination is a legal minefield. A poorly handled process could result in unexpected compensation, lengthy litigation, or forced reinstatement.

At GCO, we act as your external legal partner—working alongside your HR team with impartiality, experience, and full legal expertise in a high-risk process.

Process and Methodology

A Clear Path to Excellence for your Company

Our customer-centric process is tailored to your specific needs. From initial analysis to strategy implementation, we are with you every step of the way.

Frequently Asked Questions

Answers to your key questions about termination of employment advice & management

Do I always need to justify a dismissal?

Yes. Under Spanish employment law, dismissals must be supported by a legally valid cause.

In objective dismissals, the reason may be economic, organisational, technical or production-related.

Disciplinary dismissals require a serious and proven breach of duty. Formalities must also be followed: proper notice, written justification, and correct severance calculation. Failing to meet these requirements could lead to the dismissal being ruled unfair or null.

What’s the difference between an unfair and a null dismissal?

An unfair dismissal breaches either the formal procedure or lacks sufficient cause.

A null dismissal violates fundamental rights—for example, dismissals based on discrimination or during protected situations like maternity leave.

Unfair dismissal usually means financial compensation; null dismissal typically requires reinstatement and back pay.

Do I always have to pay compensation?

That depends.

Objective dismissals require 20 days’ salary per year worked (up to 12 months). Unfair dismissals require 33 days per year (up to 24 months).

Disciplinary dismissals, if justified, require no severance—although the employee must always receive their final settlement (accrued wages, unused holidays, prorated bonuses, etc.).

What happens if the employee challenges the dismissal?

The first step is mandatory conciliation via CMAC (Mediation, Arbitration and Conciliation Centre). If no agreement is reached, the case goes to the Labour Court. The company must prove the dismissal was lawful, properly justified, and correctly executed. That’s why sound documentation and expert guidance are essential.

Can I dismiss an employee during medical leave or maternity leave?

Technically yes, but it’s highly restricted.

You must prove the dismissal is unrelated to the protected situation. Otherwise, it will likely be declared null, requiring full reinstatement and back pay. These are sensitive cases, and you should always act with extreme legal care and advice.

After outsourcing contract management, what?

What comes after the termination?

Employee termination doesn’t happen in isolation. It affects payroll, compliance, financial planning, and legal strategy.

That’s why GCO offers complementary services to help you manage the full picture, minimise risk and maintain full legal compliance:

Payroll Management

We handle payroll processing, final settlements, and all communications with the Spanish Social Security authorities, ensuring zero errors or late submissions.

Labour Inspections

If you’re facing a labour inspection, we represent and defend your company—ensuring that your processes meet all legal standards and that you’re prepared for any official review.

Equality Plans & Labour Compliance

We design and implement Equality Plans and compliance frameworks tailored to Spanish labour regulations—helping your business align with social and legal expectations.

Nuestro equipo fiscal