I have been dismissed: what to do in the first 20 working days, the letter and the settlement

If you have been dismissed, the most urgent thing is not to argue with the letter but to look at the calendar: you have 20 working days to bring a claim, and that deadline is a forfeiture period, meaning it cannot be extended or recovered. Within it you have to decide what to sign, what to accept and whether to challenge the dismissal.

This general guide, as of 2 October 2026, explains how the deadline is counted, what to do in the first few days, how the settlement (finiquito) differs from severance pay, and how a judge classifies a dismissal. Your collective agreement and the specific facts can change the outcome.

The deadline: 20 working days, no extension

The action against a dismissal expires after 20 working days (article 59.3 of the Workers' Statute, ET, and article 103 of the Employment Tribunals Procedure Act, LRJS). It helps to be clear that:

• Saturdays, Sundays and public holidays do not count at the seat of the court: with no holidays, that is four weeks from Monday to Friday.
• August does count for dismissals: it is the exception in article 43.4 LRJS to the general rule that August is not a working month for court purposes.
• The count starts the day after the dismissal takes place, normally the effective date stated in the letter.
• Negotiating with the employer does not stop it. Only filing a request for conciliation suspends it, as we explain below.

If the deadline expires, you lose the chance to challenge the dismissal even if you were right. Do not wait until the last day: a mistake when filing can cost you the right.

What to do in the first few days

1. Keep everything. The letter, your contract, your latest payslips, your employment record and any relevant messages or emails. If you are dismissed verbally, note the date, time and witnesses: the deadline runs all the same.
2. Sign the letter only as received. Your signature proves you received it, not that you agree. Write «received, not in agreement» («recibí, no conforme») and the date, and ask for a copy.
3. Apply for unemployment benefit. According to the public employment service (SEPE), the deadline is 15 working days from the termination; if you are late, you lose as many days of benefit as you delay the application (article 268 of the General Social Security Act, LGSS). Challenging the dismissal neither prevents nor suspends it.
4. Do not sign termination agreements or waivers without reading them and understanding what they ask of you.
5. File the conciliation request as soon as possible.

The dismissal letter: what to look for

A disciplinary dismissal must be notified in writing, stating the facts that justify it and the date it takes effect (article 55.1 ET). If it does not meet that form, or if the facts are not proven, the dismissal will be unfair (article 55.4). Check:

• Whether it describes specific facts (dates, conduct) or merely uses generic wording such as «poor performance».
• The effective date, because it marks the start of the deadline.
• Whether the ground is disciplinary (article 54) or objective (articles 52 and 53). In an objective dismissal, the employer must make available to you, at the same time as the letter, severance of 20 days per year of service up to a maximum of 12 months' pay, and give you 15 days' notice. It is challenged in the same way and within the same deadline.
• Whether the employer acknowledges that the dismissal is unfair and offers you an amount.

This matters because, at trial, the employer can only defend the dismissal on the grounds stated in the letter and must prove the facts it alleges against you (article 105 LRJS).

Settlement and severance pay: they are not the same

When notifying the termination, the employer must attach a proposed settlement statement. You can ask for a legal employee representative to be present when you sign the receipt; if the employer prevents this, you can record it on the receipt itself (article 49.2 ET).

What to sign and with what reservation:

• Check each item against your payslips and your collective agreement. If your pay was close to the minimum, also check that the 2026 minimum wage was respected.
• If you disagree with the amounts, sign «not in agreement» («no conforme») and claim the difference: claims for sums owed expire after one year (article 59 ET).
• Do not sign without advice documents stating that you accept the dismissal, that you have nothing further to claim or that you waive your rights of action. Signing a settlement without reservations can be used against you when you dispute the amounts.

How a judge classifies the dismissal

A dismissal is classified as fair, unfair or void (article 55.3 ET):

If you were on sick leave, the dismissal is not automatically void, but if the real reason is your illness or disability, its nullity for discrimination may be argued. To see how a long sick leave fits in, read what happens after 18 months of sick leave.

If it is unfair: what the employer can choose

Once the dismissal is declared unfair, the employer has five days from notification of the judgment to choose (article 56 ET):

• Pay you severance: 33 days' salary per year of service, prorated by months for periods of less than a year, up to a maximum of 24 months' pay. The contract ends on the date of actual termination.
• Reinstate you: with the right to back pay (salarios de tramitación), from the dismissal until notification of the judgment or until you find another job.
• If it does not choose, reinstatement is deemed to apply. If you are a workers' representative, the choice is yours.

If your contract dates from before 12 February 2012, the time worked up to that date is calculated at 45 days per year, with its own caps (eleventh transitional provision ET). For an indicative figure, use the dismissal calculator: it starts from the daily salary with extra pay prorated and your actual length of service.

For tax purposes, the compulsory statutory severance is exempt from personal income tax up to €180,000; severance agreed in a contract or collective agreement is not, except what is agreed at conciliation before the administrative service (article 7.e of the Personal Income Tax Act).

Is there a reform? As of October 2026, the consolidated text of article 56 still sets 33 days and 24 months' pay. A reform is under debate following criticism from the European Committee of Social Rights and some courts have awarded additional compensation in specific cases, with no uniform approach. Check the rule that applies on the date of your dismissal.

Conciliation and the claim, step by step

1. Conciliation request. To challenge a dismissal, you must first attempt conciliation or mediation (article 63 LRJS). In Madrid it is filed with the SMAC of the Community of Madrid, online with a digital certificate or Cl@ve, in person or by post.
2. The deadline is suspended when you file and resumes the day after conciliation is attempted or 15 working days after filing if it has not been held (article 65.1 LRJS). You keep the days you had left.
3. Attend the hearing. Attendance is compulsory. If the person who filed the request does not appear without just cause, it is deemed not filed and you may lose the suspension of the deadline (article 66.2). If the employer does not appear, conciliation is deemed attempted without effect.
4. If there is an agreement, what you sign binds you: before accepting a figure, compare it with your estimate and specify how and when it will be paid.
5. If there is none, file the claim with the Social Court (Juzgado de lo Social) within the days you have left of the 20.

Have you just been dismissed?

If you are not sure what to sign or how many days you have left, the most useful step is to review the letter with your payslips before the deadline advances. You can book a consultation on dismissals and employment claims and we will study your case with the documents in front of us.

Legislation and sources

• Workers' Statute, consolidated text (arts. 49, 53, 54, 55, 56 and 59 and eleventh transitional provision)
• Act 36/2011 on the social jurisdiction (arts. 43, 63 to 66, 103 and 105), consolidated text
• General Social Security Act, consolidated text (art. 268)
• Act 35/2006 on Personal Income Tax, consolidated text (art. 7.e)
• SEPE: contributory benefit, worked for more than one year
• Community of Madrid: Mediation, Arbitration and Conciliation Service (SMAC)