Indefinite employment contract, can a worker be FIRED?
Patrick2024-01-23T05:10:56+00:00Workers with an indefinite-term employment contract can be dismissed if certain circumstances apply. This article takes a closer look at these circumstances to help you understand them better.
Causes for dismissal of workers with permanent contracts
We must remember that, according to the Spanish Workers’ Statute (ET), contracts, if nothing is stated, are indefinite. But, in addition, the Labour Reform of 2022 has made the assumptions for temporary contracts more difficult. This means that, in recent years, permanent contracts have had a much greater relative value in the total.
Does this mean that a worker cannot be dismissed in this circumstance? Not at all, but, in general, the causes are much more restricted. Basically, these are the 3 cases of dismissal:
1. Dismissal for disciplinary reasons
Dismissal for disciplinary reasons is covered by article 54 of the ET. In this case, it has to be proven that the worker was guilty of serious misconduct.
Some reasons that would justify dismissal are repeated absenteeism or unpunctuality, lack of consideration for colleagues, insubordination to superiors, drunkenness or drug addiction that influence work performance, breach of contractual good faith, voluntary and continuous decrease in performance or harassment (without prejudice to other civil or criminal actions).
The main characteristic of this dismissal is that it does not entail any type of severance pay. The severance pay would only include the proportional part of the pay and the payment of holidays not taken. Not surprisingly, if any of the reasons are proven, it would be justified to dismiss the worker.
2. Redundancies with an indefinite contract
Dismissals due to collective redundancies are collective and have nothing to do with the employee’s performance. In this case, the company presents a Redundancy Proceedings (ERE) due to the impossibility of maintaining the activity under the current conditions.
These dismissals are subject to a contestation period, are typical of companies with a certain number of workers and are usually negotiated through trade union representation. This also means that they take several months to materialise and that, on many occasions, they are often reversed.
As these types of dismissals are exceptional, the casuistry is very varied. In general, the conditions are usually negotiated with high severance payments and, on occasion, through early retirement incentives. In any case, the standard would be 20 days per year worked with a maximum of 12 monthly payments.
3. Dismissal for objective causes
Dismissal for objective causes is another possibility for people with an indefinite employment contract. Here there is no fault on the part of the employee, but his or her job may become obsolete, the employee may be unable to adapt to necessary organisational changes, or the company may simply be going through a period of prolonged losses.
When any of these reasons apply, the compensation is 20 days per year worked with a maximum of 12 monthly payments. However, this is subject to proof that the dismissal is justified.
Therefore...
Dismissal with an indefinite employment contract is possible, but only if it is duly justified. At Asesoría Orihuela Costa we provide a comprehensive service so that SMEs can understand the regulations and make decisions. Call us without obligation!