DISMISSAL OF EMPLOYEES AND SOCIAL SECURITY IN SPAIN

Dismissal of Employees:

Dismissal (despido) is a way of firing one or a number of employees. There are different types of dismissal and depending on your contract type can determine the amount (if any) of compensation you can receive. The types of dismissal are:

• Collective Dismissal (despidos colectivos). This type of dismissal occurs when more than 10% of the workforce (30% if the workforce is over 300) is dismissed through a redundancy procedure. This type of redundancy must be justified to the labour authorities.
  
  
• Disciplinary Dismissal (despidos disciplinario). This type of dismissal is used when the employee(s) are in serious breech of there working contract. This can mean things such as continuous lateness or absenteeism from work, mental and physical abusive behaviour, disobedience and other matters.
  
  
• Dismissal Based on Objective Causes According to the Law. This type of dismissal is mainly used when the employee is no longer able to do their job correctly, they may not have adapted well to the change in work situations or continuous non attendance to work.
  
  

Social Security Tax:

When you are working in Spain your employer will deduct something called social security tax every month from your salary providing that you are earning over the minimum annual salary, which is roughly ?421 a month. The amount you contribute is calculated from a percentage of your taxable income. At the moment it is around 6.7%. Also you will be susceptible to paying personal income tax (Impuesto sobre la renta de las personas físicas/IRPF). This is a direct tax levied from the amount of Money that you earn.

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