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Practical Income Manual 2020.

C) Exempt compensation derived from dismissals classified as unfair

Regulations: Art. 56 and the eleventh transitional provision of the Workers' Statute.

Compensations that do not exceed the following amounts are exempt:

a. In dismissals declared before February 12, 2012: 45 days of salary , per year of service, prorating by month the periods of time less than one year, up to a maximum of 42 monthly payments .

b. In dismissals that are declared since February 12, 2012 it is necessary to distinguish:

  • For contracts signed on or after February 12, 2012: 33 days of salary per year of service , with time periods less than one year being prorated by month, up to a maximum of 24 monthly payments .
  • For contracts formalized before February 12, 2012 : The sum of the following quantities:

    1. Compensation corresponding to the period prior to February 12: 45 days of salary per year of service for the period of service provided prior to said date, with periods of time less than one year being prorated by month.
    2. Compensation corresponding to the period after February 12: 33 days of salary per year of service for the period of subsequent service provision, with periods of time less than one year also being prorated by month.

    The resulting compensation amount may not be higher than 720 days of salary , unless the calculation of the compensation for the period prior to February 12, 2012 results in a higher number of days, in which In this case, this will be applied as the maximum compensation amount, without this amount being able to exceed 42 monthly payments, in no case .

The contracts to promote indefinite hiring concluded prior to February 12, 2012 will continue to be governed by the regulations under which they were concluded.

The contract for the promotion of indefinite hiring was regulated in the currently repealed First Additional Provision of Law 12/2001, of July 9, Urgent Measures to Reform the Labor Market

However, in the event of disciplinary dismissal, compensation for unfair dismissal will be calculated as indicated above.

In Chapter 3, an example of the treatment of compensation derived from dismissal classified as unfair can be consulted in practical case .