Few situations generate as much nervousness in the workplace as receiving or writing a termination letter. Not only does it imply the end of a professional relationship, but it also involves complying with a set of essential legal formalitiesA poorly written letter can become the gateway to legal disputes, unexpected compensation, or even the nullification of the entire process.
Are you faced with the need to deliver, receive, or understand a termination letter? In this guide, you'll find everything you need: from the legal justification and requirements to templates, common errors, delivery, and consequences if not done properly. All information is updated according to current Spanish legislation and the latest case law, so you can act with maximum security and confidence.
What is a termination letter and why is it so important?
The dismissal letter is the official, written document that formalizes the company's decision to terminate an employment relationship with an employee.Unlike verbal dismissal—which lacks legal validity in Spain—dismissal must be communicated in writing, and this document proves, protects, and defines the rights and obligations of both parties in any subsequent dispute.
This document not only has evidentiary value in trials, but also constitutes the basis from which the worker can defend himself., whether challenging the dismissal for formal defects, a lack of real motivation, or claiming compensation or reinstatement. Judges scrutinize the letter with a fine-tooth comb, and any defect can change the meaning of a ruling.
The Workers' Statute, jurisprudence and the doctrine of the courts insist that The facts or causes that motivate the dismissal must be explained precisely, as well as the exact date on which the decision will be effective.These elements are not a formality: their omission or confusing wording can result in the dismissal being declared unfair or void, with serious financial consequences for the company.
Structure and basic elements of a dismissal letter
A valid and effective dismissal letter must follow a specific structure. It is not just about presenting a decision, but about documenting in an understandable and reliable way everything that the law requires.. Therefore, the letter usually contains the following sections:
- Company and employee identification: Company name, business name, and tax identification number (CIF); full name and details (ID, position, seniority) of the employee.
- Place and date of issue: The place where it is delivered and the date on which it is communicated.
- Formal greeting and presentation: A polite beginning that explains the reason for the letter.
- Clear exposition of the facts or causes: Specifying whether it is an objective, disciplinary, collective, or voluntary dismissal, and specifying the specific reasons and applicable regulations.
- Effective date of dismissal: The day from which the contract is terminated.
- Information on settlement/completion and, if applicable, compensation: Amount, delivery method and any relevant details.
- Formal farewell and signatures: Signature of the company representative (and stamp, if applicable), and a place for the employee to sign the receipt. It is advisable to include a receipt, either in agreement or adding "not in agreement."
Why is it mandatory to submit a dismissal letter?
Spanish law requires that all dismissals be communicated in writing, detailing the facts and the effective date. The goal is to ensure transparency, protect both parties, and provide safeguards for the process. If the company skips this step, the dismissal may be declared unfair or even void, requiring reinstatement of the employee and payment of severance pay and procedural wages.
The letter is also the only element that delimits the facts alleged by the companyIn court, you may not invoke reasons other than those stated in the letter. Therefore, the writing must be especially careful and detailed.
Differences between types of dismissal according to the letter
In Spain, the most common types of dismissal are:
- Disciplinary dismissal: It is based on a serious and culpable breach by the employee (absence of attendance, disobedience, breach of trust, serious misconduct, etc.). The letter must describe in detail the specific facts justifying the dismissal. It does not usually require notice or compensation, unless a judge declares the dismissal unfair.
- Objective dismissal: Motivated by reasons beyond the employee's control, such as economic, technical, organizational, or production reasons, or even due to supervening incompetence or lack of adaptation. It requires 15 days' notice and a provision for compensation of 20 days per year worked (maximum 12 monthly payments). The letter must clearly justify the reasons and, if the reason is economic, provide the facts and figures that support the company's situation.
- Collective dismissal or ERE: When it affects several employees for organizational, economic, or production reasons. Dismissal letters usually refer to the processing of collective dismissal proceedings, explaining the general reasons and how they affect each employee individually.
- Voluntary dismissal: In reality, it's a resignation or termination communicated by the employee themselves, not a termination by the company. In this case, the employee communicates their desire to end the employment relationship, and the company receives the letter.
- Unfair dismissal: A provision recognized by the company when the reason given is insufficient or unjustified, or the letter has formal defects. It entails the obligation to compensate the employee (33/45 days per year depending on the period worked).
Models and examples of dismissal letters according to the case
Tailoring the letter to the type of dismissal is essential. Let's look at simplified examples for each case:
Sample disciplinary dismissal letter
- Header: Place, date, company and employee details.
- Subject: Communication of disciplinary dismissal.
- Text: Details of the facts, dates, regulations violated, and reference to the article of the Workers' Statute or collective agreement. It ends with the effective date and the corresponding settlement (salary, severance pay, etc.).
- Company: Company representative.
Example of objective dismissal letter
- Header: Place, date, details of parts.
- Subject: Communication of objective dismissal for economic/technical/organizational/productive reasons.
- Text: A description of the company's situation, regulatory reference, details of the cause and justification, mention of the notice and compensation. Indicate whether compensation is available immediately or if, exceptionally, it is not possible and will be provided later.
- Signature and stamp: Company. Space for the employee's signature and the "non-compliant" statement if desired.
Sample collective dismissal letter
- Header: Place, date, details, reference to the processing of the ERE or collective file.
- Text: Indicate the competent authority, collective reasons, and how they affect the specific recipient. Attach relevant documentation, if applicable.
- Ending: Signature, seal and effective date.
Sample voluntary dismissal letter
- Header: Identification of parts and date.
- Text: Declaration by the employee expressing his or her irrevocable intention to resign voluntarily, indicating the notice period (normally 15 days).
- Company: Worker.
These templates are guidelines: even properly structured letters can be rejected if the content is too generic, contradictory, incomplete, or does not reflect the company's reality.
Key Legal Requirements: What a Termination Letter Must Include
Jurisprudence and the Workers' Statute insist that the letter must allow the worker to know (without doubt) the facts or causes that motivate the company's decision.To do so, the following points must be observed:
- Complete company and employee data.
- Statement of facts or causes in a specific manner: It's not enough to simply say "lack of trust" or "financial losses." It's essential to detail the circumstances, dates, figures, specific incidents, or the real reasons for the decision.
- Express reference to the type of dismissal and the applicable regulations (article of the Statute, agreement…)
- Date of communication and effectiveness: The letter must include both. Otherwise, it may be void.
- Statement on compensation, if applicable, and its amount.
- Signature of the company's legal representative and space for the employee's signature (even if the employee does not wish to sign, they should provide proof of delivery).
If even the minimum of these requirements is missing, the dismissal may be considered unfair, which implies compensation or reinstatement.
Delivery of the dismissal letter: Methods and validity
Serving the letter is a key step. It is not enough to write it: it must be proven that the worker has received it.The most common and secure methods are:
- Hand delivery: It is recommended that the worker sign the receipt, although he or she may write “not in compliance.”
- Witnesses: If you refuse to sign, two witnesses may sign to prove delivery.
- Burofax or certified mail with acknowledgment of receipt: Allows you to test sending and receiving.
- Notarial conduct: When the notification is particularly complex.
- Certified digital shipping: There are certified email methods or legal platforms that certify the recipient's identity and the integrity of the document (simple email or WhatsApp are not valid due to their easy manipulation and difficulty in proving effective receipt).
If the employee refuses to sign the letter, this does not prevent the dismissal from taking effect, but the company must be able to prove that it made the letter available to the employee. For example, a certified letter is considered sufficient proof of notification.
Is it mandatory to sign the dismissal letter?
No. The employee's signature on the termination letter does not mean that they agree with it or the substance of the matter. It's simply an acknowledgment of receipt: it confirms that the letter has been delivered. The affected party can sign "not in agreement," which is highly recommended if they disagree with the reasons, compensation, or other aspects.
Refusing to sign the letter does not prevent the dismissal. However, it is preferable to have it certified by witnesses, certified letter of delivery, or notarized.
In the event of a subsequent challenge (for example, if the employee claims unfairness or nullity), the date from which the appeal period (20 business days) begins is the effective date shown on the letter and, in the case of a burofax, the day on which the affected party collects it, not the date of the postal notice.
What happens if the dismissal letter is flawed or vague?
The usual consequence is the declaration of unfairness of the dismissal.This is indicated by recent Supreme Court rulings: when the letter only includes generic, vague, or copied reasons from third-party templates, or fails to detail the circumstances, the employee is at a disadvantage and the dismissal is considered arbitrary. The company may be forced to reinstate the employee or pay the increased severance pay (33/45 days per year).
In fair dismissals, it is especially important that the letter include figures, specific facts, and a clear justification for the economic, organizational, or technical situation. Without this information, judges can declare the dismissal null and void or unfair, as stated in numerous rulings by the Supreme Court of Justice and the Supreme Court.
Deadlines and notice periods according to the type of dismissal
The legal notice period depends on the type of dismissal:
- Objective dismissal: It requires a minimum of 15 days' notice or compensation if it is not met. During this period, the employee continues to provide services, unless otherwise agreed.
- Disciplinary dismissal: No prior notice is required. Termination can be immediate, although, in the case of union representatives or workers with special protection, a contentious proceeding or a prior hearing may be necessary.
- Collective dismissal: The notice period and deadlines are in accordance with the regulations of the adjustment file and the agreement reached with the representatives.
- Voluntary dismissal: The notice period is usually 15 days, although it may vary depending on the collective agreement.
Severance pay and severance pay: What does the company pay for each type of dismissal?
The obligation to pay severance pay depends on the type of dismissal and whether the letter meets the legal requirements.:
- Objective dismissal: 20 days of salary per year worked, prorated by month, with a maximum of 12 monthly payments, unless the cause is unjustified.
- Disciplinary dismissal: In principle, there is no right to compensation unless a judge declares the dismissal unfair (in that case, 33/45 days per year, depending on seniority and initial contract date).
- Unfair dismissal: 33 days of salary per year worked for periods after February 12, 2012, and 45 days per year for periods before, with a maximum of 24 monthly payments.
- Settlement: A settlement document must always be submitted with outstanding amounts: salaries, accrued and unused vacation time, extra pay, overtime, or any other outstanding amounts.
Can the company rectify a defective dismissal letter?
The law and jurisprudence allow that, if the company recognizes that the first letter had formal defects, it can issue a new letter correcting the errors, but only within the legal deadlines and meeting certain requirements:
- A second letter must be delivered within twenty days of the first attempt.
- The worker must be registered with Social Security during the interim period and receive the corresponding wages for those extra days.
- The second letter should include the reason for dismissal (either the same or updated if the situation persists) and correct any previous deficiencies.
In fair dismissals, there is some flexibility, according to the Supreme Court, to repeat the process if the cause persists (for example, unresolved financial problems).
Additional formalities: union representatives and data protection
When the worker is a legal representative or union delegate, the law establishes additional formalities:
- Contradictory file: Before disciplinary dismissal, disciplinary proceedings must be initiated, with a hearing of the interested party and the other representatives.
- Preliminary hearing of the union section: If the company knows of an employee's union affiliation, it must inform the union representatives before firing the employee.
- Copy of the letter to the legal representation of the workers: In objective dismissals for collective reasons, the letter must also be sent to the legal representatives, not necessarily simultaneously but within a reasonable period of time.
Regarding data protection, it is essential not to include irrelevant or specially protected personal information (such as specific medical diagnoses) in the letter, unless there is an inexcusable justification. The processing of employees' personal data must comply with the LOPDGDD (General Data Protection Act) and the GDPR.
What to do after receiving a dismissal letter?
If you are an employee, sign the letter by writing "not in agreement" if you do not agree with the reasons or the compensation. From the day after the effective date or upon receipt of the letter, you have the right to: 20 business days to claim (requesting prior conciliation at the SMAC or equivalent in your Autonomous Community, and then filing a claim if there is no agreement).
Make sure the letter includes all the legal information (information, reasons, and dates), and if you detect any errors, compile them in writing or consult a labor lawyer. Keep in mind that some disciplinary dismissals require a prior hearing, and if you didn't have one, the dismissal may be unfair.
Delivery methods: electronic letters and online systems
Digitalization now allows dismissal letters to be processed through online platforms, but the law requires that the notification be authentic, certified, and ensure that the employee actually received it (advanced electronic signature, certified systems, or official platforms, never conventional email or WhatsApp).
In some sectors, such as the public sector or large companies, there are portals for electronic notifications, but a trail and acknowledgment of receipt from the recipient must always be maintained.
Special cases: refusal to accept the letter and abandonment of the post
If the employee refuses to accept the letter or cannot be reached, the company can send it by burofax, certified mail, or notarized notification. It is important to provide proof that the notification was made available to the employee. The law and jurisprudence consider attempts to use these methods sufficient, provided there is reliable evidence.
In the event of abandonment, the letter can be sent to the address listed on the contract or to the Social Security office. If the employee has changed address without notice, this does not affect the company, unless it is in bad faith.
Common mistakes that invalidate dismissal
- Using generic or copied models without adapting them to the specific circumstances of the company or the worker.
- Do not detail facts, dates or causes.
- Failure to comply with notice periods or failure to pay compensation at the time of delivery.
- Failing to provide reliable delivery or failing to prove that the employee received the letter.
- Failure to send a copy to legal representatives when required by law.
- Including personal data that is not relevant or protected by law (such as specific illnesses without legal justification).
Judicial interpretation: relevant jurisprudence
Numerous judgments have emphasized that The letter must allow the worker to know specifically the object of the charge and organize his defense.. To delve deeper into the legal aspects, you can also consult our article on letter of unfair disciplinary dismissal.
When the letter fails to detail the facts and reasons with sufficient precision, the result is usually a dismissal. Furthermore, it's pointless to add facts later in the legal process: only what is written in the letter can be used as grounds for dismissal.
A vague letter (for example, stating only "financial losses" without figures) or with inconsistent information (copied from another company or referring to nonexistent activities) will not pass muster in court.
On the other hand, when the employer corrects formal errors by issuing a second letter within the deadline and complying with formalities, the courts consider it valid as long as the cause still exists.
What happens to compensation after a dismissal is declared unfair or void?
If the dismissal is declared unfair, the company can choose between reinstating the employee (with payment of back wages since the dismissal) or compensating them with the statutory amounts (33/45 days per year worked, up to 24 monthly payments).
If the dismissal is unfair (for example, due to a violation of fundamental rights, discrimination, or unremediable formal defects), the employee must be reinstated immediately and receive all outstanding wages from the date of dismissal.
Payment of compensation and settlements does not exempt the company from complying with the formalities: even if everything is paid correctly, a formal error in the letter can result in invalidity or inadmissibility and the obligation to repeat the process.
With all this information, both companies and employees can approach the drafting and receipt of a termination letter with knowledge, confidence, and transparency. Mastering the formal requirements, delivery methods, errors to avoid, and the legal consequences of the entire process can prevent conflicts, save costs, and guarantee the rights of all those involved in the termination of the employment relationship.