Termination of Employment Contracts

In this blog of Mercury Lawyers in Marbella we will focus on the different types of termination of employment contracts. The forms of termination of employment contracts are regulated in article 49 and following articles of the Workers' Statute (Estatutos de los Trabajadores in Spanish), and in short, they are:

By mutual agreement of the parties.

For the reasons validly stated in the contract, except for manifest abuse of rights by the employer.

By expiry of the agreed time.

By resignation of the worker.

Due to death, severe disability or total or absolute permanent disability of the worker.

By retirement of the worker.

By death, retirement, disability of the employer, or by extinction of the legal personality of the contracting party.

Due to force majeure.

Due to collective dismissal based on economic, technical, organisational or production causes.

By will of the worker.

Due to dismissal of the employee.

Due to objective causes that are legally applicable.

By decision of the employee who is a victim of gender violence

In the next blogs of Mercury Lawyers in Marbella we will mainly detail the dismissal and resignation of the worker, where we will analyse the notice and compensation that may be applicable.

We will also deal with the so-called ERE (Expediente de Regulación de Empleo in Spanish), referring to collective dismissals. These refer to the termination of employment contracts for economic, technical, organisational or production reasons when, in a period of ninety days, it affects at least:

A.- 10 workers, in companies with fewer than 100 workers.
B.- 10% of the workforce in companies with between 100 and 300 workers.
C.- 30 workers in companies with more than 300 workers.

But it can also be considered as collective dismissal, when the complete activity of the company ceases and affects at least 5 workers.