The cost of dismissals in Spain before and after the labor reforms

  • Pablo Gimeno Díaz de Atauri Universidad Carlos III of Madrid
Keywords: dismissal, severance payments, temporary workers, labour market reforms


Several reports and papers about Spanish labour market have focused on the allegedlyhigh dismissal costs and the persistently high rate of temporary work. In fact, the last major reforms onlabour regulation have tried to reduce them. In this paper, I will discuss the most relevant expenditureitems that any employer is Spain has to face to lay off workers. Implicit, indirect and procedure costsappear to be the main problem, and not severance payments for unfair dismissal. Despite of the efforts onimproving the regulations being put forward by this article, there are several dysfunctions caused directlyby the law, as it provides incentives to hire temporary workers and to avoid redundancy legal procedures.


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How to Cite
Gimeno Díaz de Atauri, P. (2015). The cost of dismissals in Spain before and after the labor reforms. Spanish Labour Law and Employment Relations Journal, 4(1-2), 32-46. Retrieved from
Special Issue on Redundancy and Dismissal