For personalized legal advice on this matter, please contact Fernanda Vargas via WhatsApp or book an appointment through her Calendly. This article provides an in-depth analysis of the layoff prohibition in Spain until September 30, 2026.
1. The Layoff Limitation in Force Until September 30, 2026
The current limitation on layoffs valid until September 30, 2026, strictly prohibits companies and self-employed professionals who have received direct aid under the Integral Response Plan to the Middle East Crisis from justifying dismissals or activity cessation based on force majeure or economic, technical, organizational, and production reasons related to the crisis. This protective measure aims to maintain stability in challenging economic times.
2. Legal Basis: From Article 62 of RDL 7/2026 to Article 31 of RDL 18/2026
The regulation is founded on two key legal instruments. Initially, Article 62 of Royal Decree-Law 7/2026 set the limitation to expire on June 30, 2026. Later, Article 31 of Royal Decree-Law 18/2026 extended the deadline until September 30, 2026, thereby strengthening the protective measure and adapting it to the evolving crisis. It is crucial to understand these timeframes and the legal transition, as any actions outside this framework may entail severe legal and economic consequences.
3. Who is Affected: Companies and Self-Employed Beneficiaries of the Direct Aids and Affected Sectors
This limitation is applied exclusively to entities that have received the direct aids provided by the plan. Specific sectors such as road, rail, and maritime transportation, as well as agriculture, livestock, and fisheries, are especially impacted. The measure also includes small and medium-sized enterprises (SMEs) and self-employed individuals who have hired personnel, demonstrating the scope and precision of its application.
4. Which Dismissals are Blocked and Which Remain Permissible
The measure prohibits any dismissal or activity cessation justified by force majeure or economic, technical, organizational, and production reasons linked to the crisis. However, dismissals based on other fully justified reasons, not related to the crisis, remain permissible. This clear differentiation is essential for defining which grounds for contract termination are legally acceptable and which are not.
5. Fixed Discontinuous Contracts and Cooperatives: Beyond the Classic Dismissal
The measure extends beyond traditional dismissals, affecting fixed discontinuous contracts and cooperatives. For fixed discontinuous contracts, the inability to justify termination by citing the end of the work period or the lack of recall is enforced. In cooperatives, assemblies are prohibited from approving permanent reductions in working hours or changes in professional classification based on these reasons.
6. Consequences of Non-Compliance: Full Reimbursement of Aid and Nullification of the Dismissal
Failure to comply with this regulation carries significant consequences. Companies must fully reimburse any direct aid received, and any dismissal made in violation of this rule will be deemed null. Unlike measures that provide graded sanctions, this norm imposes an automatic nullity, obliging the employer to rehire the employee and pay the corresponding back wages.
7. Null or Unjustified? The Supreme Court’s Doctrine on the Pandemic-Related Clause
The Supreme Court’s doctrine, particularly as established in judgment STS 841/2022 dated October 19, 2022, made a significant distinction during the pandemic by classifying dismissals as unjustified rather than null, unless specific facts warranted nullity. Under the current regulation, however, any dismissal that violates the norm is automatically declared null. This distinction has profound economic and practical implications, as nullity means mandatory reinstatement and back pay, in contrast to the options available under an unjustified dismissal ruling.
8. What Can the Worker Do: Pre-Claim Periods, Lawsuits, and Evidence of the Real Cause
Workers must be aware of their rights and act promptly in challenging an unlawful dismissal. It is advisable to submit a pre-claim complaint before proceeding to a lawsuit, adhering strictly to the deadlines stipulated by labor laws. Collecting credible evidence to prove the real cause behind the dismissal is essential, as the burden of proof can be decisive in overturning an unlawful termination.
9. Foreign Workers: Impact on Employment Records, Residence, and Work Permits
For foreign workers, the cancellation of a contract has ramifications that extend beyond immediate employment issues. It can affect their employment record, social security contributions, and, crucially, the renewal of their residence and work permits. Under current regulations, as modified by recent decrees and the applicable regulatory framework, these factors are critical in assessing their continued legal status in Spain.
10. What Happens from October 1, 2026, and Which Commitments Remain in Force
From October 1, 2026, the specific layoff prohibition will cease to be in force, except for some employment maintenance commitments that may have been agreed upon previously. Companies must prepare for the regulatory change by ensuring all HR processes and documentation are updated and in compliance with the legal requirements. Anticipating this transition is critical for mitigating risks and ensuring a smooth adjustment to the new regime.
11. Documentation Checklist for Companies, Consultancies, and HR Before September 30
Before the deadline of September 30, 2026, it is essential for companies, legal advisers, and HR departments to compile and verify the following documentation:
- Records of the direct aids received.
- Employment contracts and any modifications applied.
- The approved and executed sustainable mobility plan.
- Minutes of meetings and agreements within cooperatives.
- Documentation justifying the grounds for any dismissals, if applicable.
- Audit and expert reports related to employment decisions.
12. Frequently Asked Questions and Common Errors
Common questions include the scope of application in different sectors, the impact on specific contract types such as fixed discontinuous contracts, and the criteria for classifying dismissals as null versus unjustified. It is critical to avoid errors such as inadequate documentation or misinterpretation of deadlines. Both employers and employees are advised to thoroughly review the legal framework, consult reliable sources, and seek specialized legal advice when needed.
For further inquiries or personalized guidance, please do not hesitate to contact Fernanda Vargas via WhatsApp or book an appointment through her Calendly.