Workplace dismissal is one of the most delicate moments for any company. Managing it properly not only protects the rights of the employee but also the interests of the organization.

 

Current legislation

Before making any decision, it is essential to understand the labor regulations governing dismissals in your country or region. The Workers’ Statute (hereinafter WS) regulates contract termination in three categories: dismissal for objective reasons, disciplinary dismissal, and collective dismissal. The first, outlined in Article 52 of the WS, occurs due to company-related reasons or specific circumstances of the employee. Some examples include:

  • Employee incompetence known or developed after hiring.
  • Failure to adapt to technical changes after receiving appropriate training.
  • Accredited financial losses or decreased income and sales.
  • Lack of budget for financing contracts linked to specific plans.

 

Tax inspection

 

There is also disciplinary dismissal, established in Article 54 of the WS and based on serious and culpable breaches of the employee’s contractual obligations. Contractual breaches include:

  • Repeated and unjustified absences or lateness.
  • Serious insubordination or disobedience.
  • Verbal or physical offenses against the employer, colleagues, or clients.
  • Harassment of colleagues or third parties linked to the company.

The law completes the classification with collective dismissal in Article 51, referring to contract termination affecting a significant number of employees within a company. Its purpose is to ensure business viability in difficult situations while minimizing the negative impact on affected employees.

Source: Workers’ Statute (Articles 51, 52, and 54).

 

Act in compliance with legal procedures

Dismissal must follow a clear and legal procedure. From written notification to meeting established deadlines, every step must be executed correctly. Failure to comply with these processes can result in claims for unfair dismissal, potentially leading to sanctions or additional compensation.

It is also crucial to document the entire process and maintain a detailed record of actions taken prior to dismissal. This includes warnings, performance reports, follow-up meetings, and any relevant incidents. Having comprehensive documentation can be decisive if the dismissal is challenged.

The Importance of the Dismissal Letter

Articles 53 and 55 of the WS regulate the forms and effects of dismissal. The content of the dismissal letter must include concrete facts and relevant evidence, the effective date of dismissal, and the corresponding severance pay.

It is important to avoid common mistakes that may invalidate the process. The Supreme Court establishes that a lack of precision in the facts leading to dismissal may result in it being declared unfair. Failure to meet deadlines or using ambiguous language can also complicate the process. Vague or general terms such as “failure to fulfill duties” without specifying which duties were not met are not valid.

Source: Supreme Court Jurisprudence.

Provide the Corresponding Severance Pay

If the dismissal is fair, severance pay must comply with legal criteria. Ensure the employee receives the appropriate compensation based on their tenure and the circumstances of the dismissal.

In addition to the severance pay established for each type of dismissal, Article 56 of the WS regulates compensation for unfair dismissal. After being declared unfair, the employer can choose between reinstating the employee or providing compensation, with additional guarantees for legal representatives and measures to mitigate the economic impact in case of litigation.

 

Encourage open communication

Although dismissal is a difficult situation, maintaining clear and respectful communication with the employee is essential. Informing them about their rights, the reasons for the dismissal, and the available options—such as the possibility of filing a claim—is crucial for both parties to understand and respect the process.

Providing support during the transition is also key. When possible, helping the employee find a new job or offering training to improve their employability can ease the impact of dismissal and reflect the company’s ethical commitment.

 

Need help? ✅ We can assist you

At Adlanter, we guide you through the entire process, ensuring compliance with current regulations and protecting both your company and your employees.

Are you concerned about managing a workplace dismissal in your company? 📞​ Get in touch with us, and we’ll help you manage every step legally and efficiently.

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