When the contract ends, whatever the reason (end of a fixed-term contract, resignation, dismissal, mutual agreement: Workers' Statute, article 49.1), the company must attach to the notification or the notice a proposed settlement document for the amounts it owes you (article 49.2). This is the finiquito: your final payslip, with everything accrued up to your last day.
What it must include
- The pay for the days worked in the month up to the leaving date, with any outstanding supplements and overtime.
- The proportional share of the extra payments accrued since the last one you received (article 31), unless you already get them spread over every month.
- Holiday accrued and not taken. Each year gives the right to at least 30 calendar days (article 38.1); the days you are owed for the time worked and have not taken are paid in the finiquito, and contributions are due on them: the company files a supplementary settlement and contribution, in addition to that of the leaving month, for those days (General Social Security Act, article 147.1).
- Severance pay, where applicable. At the end of a fixed-term contract, 12 days' pay per year of service, in proportion to the time worked (except in training contracts and the substitution contract; article 49.1.c). In an objective dismissal, 20 days per year, prorated by months, with a maximum of 12 months' pay (article 53.1.b). If the dismissal is declared unfair and the company does not reinstate you, 33 days per year, with a maximum of 24 months' pay (article 56.1).
What is deducted and what is not
Pay, extra payments and holiday carry the usual deductions: Social Security and IRPF. Severance pay for dismissal or termination, in the amount the Statute makes compulsory, is exempt from IRPF up to €180,000 (Income Tax Act, article 7.e), and no withholding is applied to exempt income (IRPF Regulations, article 75.3.a). Anything agreed above the compulsory amount is taxed.
Notice periods and signing
- If the fixed-term contract lasts more than one year, whoever ends it gives 15 days' notice (article 49.1.c). If you resign, the notice period is the one set by the collective agreement or local custom (article 49.1.d).
- In an objective dismissal the company gives you 15 days' notice and, meanwhile, you have 6 paid hours a week to look for another job (articles 53.1.c and 53.2).
- You can ask for a legal representative of the workers to be present when you sign the finiquito; the receipt records that they were present or that you did not ask for it, and if the company prevents their presence, you can note it yourself on the receipt (article 49.2).
- Signing confirms that you have received the document and the amount. If you later find something missing, you can claim it: amounts become time-barred after one year (article 59.2) and late payment carries 10 % interest (article 29.3).
Source: Estatuto de los Trabajadores (Real Decreto Legislativo 2/2015; Workers' Statute, consolidated text, in Spanish), articles 31, 38, 49, 53 and 56 · Ley General de la Seguridad Social (Real Decreto Legislativo 8/2015; General Social Security Act, in Spanish), article 147.1 · Ley del IRPF (Ley 35/2006; Income Tax Act, consolidated text, in Spanish), article 7.e) · Reglamento del IRPF (Real Decreto 439/2007; Income Tax Regulations, consolidated text, in Spanish), article 75.3