Workplace Transfer in Spain: Options and Severance Pay

One Monday morning, Ionela opens a letter from her employer. She is 42, Romanian, has lived in Spain for fifteen years and works as a machine operator at the packaging plant her company runs in Toledo. She has been there for nine years and earns 1,700 euros gross a month. The letter says that, because production is being reorganized, in thirty days she will start working at the plant in Valencia. Her husband works in Toledo and her two children go to school there. When she asks HR, the answer is blunt: “that’s how it is, either you go to Valencia or you quit”. (The figures and details of the case are illustrative.)

If you have received a similar letter, this article is for you. A workplace transfer in Spain follows clear rules: the company has to meet certain requirements and you have three options, each with its own compensation or severance pay and with very short deadlines. If you want your letter reviewed before you decide, you can write to Fernanda Vargas on WhatsApp or book an appointment on her Calendly.

“Either You Go to Valencia or You Quit”: Ionela’s Letter

Ionela is left with three questions: whether the company can do this, what she would be paid if she says no, and whether she can challenge it. And with a very specific feeling: that she only has two ways out, moving or resigning and walking away with nothing.

That idea is wrong. What HR is telling her is not what the law says. Article 40 of the Workers’ Statute (Estatuto de los Trabajadores) regulates what is called geographic mobility, that is, changes of workplace decided by the employer. And when that change forces you to move house, the law does not ask Ionela to “quit”: it gives her three paths, and none of them leaves her empty-handed.

Before choosing, two things need checking: whether what she has been told is really a transfer, and whether the company has done what the law requires.

When It Is a Transfer: the Change of Residence

Ionela cannot commute from Toledo to Valencia and back every day. If she accepts, she will have to find a home in Valencia and move her life there. That is exactly what makes her case a transfer.

A transfer (traslado), in the sense of Article 40, is a move to another workplace of the same company that requires a change of residence, that is, it forces you to move somewhere else in order to get to work. It is also permanent: it is not a trip of a few months, but your new post.

If the change does not force you to move, these rules do not apply. Moving to another workplace in the same city, or in a nearby town you can travel to without moving house, usually falls within the employer’s management powers, unless your collective agreement (convenio colectivo) says otherwise. In that case you would not have the three options we explain below.

Nor do they apply to someone hired specifically to work at mobile or itinerant workplaces, because in that kind of job changing location is part of the work itself. That is not Ionela’s case: she was hired for the Toledo plant.

What the Company Must Do: Valid Reasons and 30 Days’ Notice

Ionela’s letter mentions a “reorganization of production” and gives her thirty days. Both matter, because they are the two basic requirements for a transfer.

A Reason That Justifies It

The company cannot transfer you just because it wants to. It needs economic, technical, organizational or production reasons that justify it. A reorganization of production fits, in principle, within those reasons, but it has to be real and has to justify the transfer. If the reason does not exist or does not justify the transfer, that is the point argued in court if you decide to challenge it.

Notice at Least 30 Days in Advance

The transfer decision must be notified to the worker and also to their legal representatives (the works council or the staff delegates), at least thirty days before the date on which the transfer takes effect. In Ionela’s case, the company gave thirty days’ notice, so on this point it has complied.

Keep the letter and write down the exact day it was handed to you. That date starts the deadlines that follow, and some of them are very short.

If the Transfer Affects Many People

When the transfer affects an entire workplace of more than five people, or exceeds certain thresholds of affected workers within a 90-day period, it is a collective transfer. In that case, before deciding, the company has to open a consultation period with the workers’ representatives. If many of your colleagues are being transferred at the same time, it is worth asking your representatives whether that period took place.

If Your Spouse Works for the Same Company

Ionela’s husband works for another company in Toledo, so this rule does not help her. But it is worth knowing: if one spouse changes residence because of a transfer and the other works for the same company, the latter is entitled to be transferred to the same town if there is a job available.

The Three Options When Facing a Workplace Transfer

Once the company notifies you of the transfer, the decision is yours. This is what the law says:

“Once the transfer decision has been notified, the worker shall be entitled to choose between the transfer, receiving compensation for expenses, or the termination of their contract, receiving severance pay of twenty days’ salary per year of service, with periods of less than a year prorated by months and up to a maximum of twelve monthly payments.”

Article 40.1 of the Workers’ Statute

Put simply: you can go to the new workplace and have the company pay your expenses, or you can end your contract and receive severance pay. And if you agree to go but disagree with the decision, the same article lets you take the transfer to court. Those are three options, and we look at them one by one.

Option 1: Accept With Compensation for Expenses

Imagine Ionela and her family decide to move to Valencia. Moving, travel, the deposit on a new apartment: the move costs money. The law says she does not bear that cost alone.

If you accept the transfer, you are entitled to compensation for expenses. It covers both your own expenses and those of the family members who depend on you, on the terms agreed with the company. And there is a floor: that compensation can never be lower than the minimums set by your collective agreement.

The law does not set a specific amount. It depends on what you agree with the company and on what your collective agreement says, so before accepting it is worth checking it and asking in writing which expenses will be covered.

If the problem for you is having to move and your job can be done remotely, you can also suggest an alternative to the company. We explain how remote work is regulated in Spain, although in a job like Ionela’s, on a production line, it is unlikely to fit.

Option 2: Leave With 20 Days per Year and Unemployment Benefit

Now imagine Ionela decides she cannot take her family to Valencia. HR has told her to “quit”, as if it were a resignation. It is not.

The law allows her to request the termination of the contract, that is, to end the employment relationship because of the transfer. In return she receives severance pay of 20 days’ salary per year of service. Periods of less than a year are calculated proportionally by months. The maximum is 12 monthly payments.

In Ionela’s example, with nine years at the company, she would be entitled to about 180 days’ salary (20 days for each of her nine years), which is below the maximum of 12 monthly payments. The exact amount depends on her actual salary, so it is best calculated with her payslip in hand.

Why It Is Not the Same as Resigning

The difference from a resignation is huge. If you resign, you leave without severance pay and you are not legally unemployed, so you cannot claim unemployment benefit for that departure. By contrast, terminating the contract because of a transfer does count as legal unemployment (situación legal de desempleo): on top of the severance pay, Ionela could apply for unemployment benefit (paro).

That is why how you communicate it matters so much. Do not sign a voluntary resignation letter or say you are leaving “of your own accord”. State in writing that you choose to terminate the contract because of the transfer, under Article 40 of the Workers’ Statute, and keep a dated copy.

Bear in mind that this 20-day severance pay is not the same as dismissal compensation. If the company later dismisses you and the dismissal is ruled unfair, the amount is calculated differently; we explain it in our guide on severance pay for unfair dismissal in Spain.

Option 3: Accept and Challenge It: the 20-Working-Day Deadline

There is a third way. Ionela suspects the “reorganization” is an excuse: there is still work in Toledo and nobody else on her line has been moved to another plant. If she does not want to lose her job but disagrees, she can accept the transfer and, at the same time, challenge it, that is, ask a labor court (juzgado de lo social) to decide whether the transfer is justified.

While the court decides, the transfer goes ahead: Ionela would have to start in Valencia on the set date. If the judgment rules the transfer unjustified, she is entitled to return to her original workplace, the Toledo plant. If it rules it justified, the transfer stands.

This option is only open to someone who has not chosen to terminate the contract. Either you leave with severance pay, or you stay and challenge it: you cannot do both.

The Deadline: 20 Working Days From Notification

This is where people most often get caught out. The deadline to challenge is very short and starts running from the letter, not from the day you start at the new workplace. This is set out in Article 59.4 of the Workers’ Statute, which sets a limitation period (caducidad) of twenty working days and makes clear that it:

“shall apply to actions against employer decisions on geographic mobility and substantial modification of working conditions. The period shall be counted from the day following the date of notification of the employer’s decision, after the end, where applicable, of the consultation period.”

Article 59.4 of the Workers’ Statute

In plain terms: you have 20 working days, counted from the day after notification. Because it is a limitation period (caducidad), once it has passed you lose the right to challenge, with no exceptions. And since the company gives 30 calendar days’ notice, the deadline to challenge can end even before you start at the new workplace.

For Ionela, this means she cannot wait to see how things go in Valencia. If she wants to challenge it, she has to act in the first weeks after receiving the letter.

Temporary Assignment: Not the Same as a Transfer

Suppose Ionela’s letter said something else: that she has to go to the Valencia plant for four months to help with a new production line and then return to Toledo. That would not be a transfer but a temporary assignment (desplazamiento temporal): a change of workplace that also requires living elsewhere, but for a limited time.

The rules for temporary assignments, in Article 40.6 of the Workers’ Statute, are different:

• On top of your salary, the company pays travel expenses and per diems (the allowances for food and accommodation during the assignment). Their amount depends on what is agreed and on the collective agreement.
• You must be given sufficient notice, and if the assignment lasts more than three months, at least five working days.
• If it lasts more than three months, you are entitled to four working days of leave at your home of origin for every three months of assignment. Travel days do not count toward those four, and the company pays the travel costs.
• If assignments add up to more than twelve months within a three-year period, they are treated for all purposes as a transfer, with the three options we have seen.

That last rule is important: a company cannot chain “temporary” assignments to avoid the safeguards of a transfer. If you spend more than twelve months on assignment within three years, the law treats it as what it is.

Summary: the Three Options Compared

This table sums up what you gain and what you risk with each option when facing a transfer:

Option	What you get	What you risk	Deadline
1. Accept the transfer	You keep your job and receive compensation for your expenses and those of dependent family members, never below the collective agreement minimum	Moving city with your family; if you do not challenge it, the transfer becomes final	Start on the set date (with at least 30 days’ notice)
2. Terminate the contract	Severance pay of 20 days’ salary per year, up to a maximum of 12 monthly payments, and access to unemployment benefit	You lose your job and can no longer challenge the transfer	Notify the company in writing after the notification
3. Accept and challenge	If the court rules the transfer unjustified, you return to your original workplace	You have to start at the new workplace in the meantime; if the transfer is ruled justified, it stands	20 working days from the day after notification

And this one sums up the difference between a transfer and a temporary assignment:

	Transfer	Temporary assignment
Duration	Permanent	Temporary (more than 12 months in three years is treated as a transfer)
Change of residence	Yes, on a stable basis	Yes, while the assignment lasts
Prior notice	At least 30 days, to the worker and their representatives	Sufficient notice; at least 5 working days if it lasts more than three months
What the company pays	Compensation for your own expenses and those of dependent family members	Travel expenses and per diems, on top of salary
Option to leave with severance pay	Yes, 20 days per year up to a maximum of 12 monthly payments	No, unless it is treated as a transfer
Leave to return home	Not applicable	4 working days for every three months, if it lasts more than three months

How Ionela’s Case Is Resolved

Since the move to Valencia forces her to change residence, what Ionela has received is an Article 40 transfer. The company needs economic, technical, organizational or production reasons and has to give her 30 days’ notice, which it has done.

But Ionela does not have to “quit”. She has three options. She can accept the transfer and receive compensation for her expenses and those of her dependent family. She can terminate her contract with severance pay of 20 days’ salary per year worked (in her case, about 180 days’ salary, within the maximum of 12 monthly payments) and with the right to unemployment benefit. Or she can start in Valencia and, if she believes there is no real reason, challenge the transfer in court within 20 working days of notification; if she wins, she would be entitled to return to Toledo.

What she must not do is let the days go by. The deadlines start running with the letter. Fernanda Vargas, employment lawyer in Madrid, can review the letter, the reasons and the collective agreement, and help you choose the option that suits you best. You can see how she works on her employment law page.

Frequently Asked Questions

If you have received a transfer or temporary assignment letter and do not know which option to choose, write to Fernanda Vargas on WhatsApp or book an appointment on Calendly before the deadlines run out.