Frequently Asked Questions

The information on this page does not exempt you from consulting the Labor Code and Labor Law in force.

The contents here present may change at any time, in case of doubt, seek legal advice from a specialized professional.

Termination of employment contract

In which situation can the employment contract lapse?

The employment contract lapses when:

• - It reaches its term;
• - In cases where it is unexpectedly, absolutely and definitively impossible for the worker to do their work or for the employer to receive it;
• - When the worker retires due to age or disability;
• - The employer dies, the company goes into liquidation or is closed totally and permanently.

What rights does the worker have when the employment contract lapses?

In case of contract lapses of a fixed-term employment contract due to the verification of its term or for an uncertain term, the employee will be entitled to compensation corresponding to 24 days of basic and daily remuneration for each full year of seniority, (except if the expiry is due to declaration of the worker in the general terms).

If the contract lapses on the retirement of the worker, they do not have the right to any compensation.

Can the employer contract another worker for the same position once the contract has terminated?

When the contract terminates at its term for a reason which is not attributable to the worker, a new person cannot be admitted to the same position before a period of time has elapsed which is equal to one third of the duration of the contract, including its renewals. The employer may only contract another worker for the same position in the following cases:

• - The new absence of the worker replaced when the term employment contract has been signed for their replacement;
• - Exceptional increase in the company's activity after the contract has terminated;
• - Seasonal activities;
• - The worker was contracted previously under the system for contracting workers seeking their first employment.

Can the employment contract be revoked?

Yes. Both the worker and the employer can revoke the employment contract by mutual agreement, but this agreement should be written in a document signed by both parties, giving the date it is signed and the date it comes into force.