The employment contract of a domestic worker may be terminated for a variety of reasons. However, employers must correctly identify the legal grounds for termination and comply with specific procedural requirements to avoid disputes or potential legal challenges.

The applicable framework is mainly set out in Royal Decree 1620/2011, as amended by Royal Decree-Law 16/2022, which strengthened employee protections within this special employment relationship.

General Grounds for Termination

An employment contract may be terminated on any of the general grounds established in Article 49.1 of the Spanish Workers’ Statute, including:

  • Agreement between the employer and the employee.
  • Voluntary resignation by the employee.
  • Expiry of a fixed-term contract provided there is a genuine temporary reason justifying its duration.
  • Disciplinary dismissal due to serious misconduct.
  • Retirement, incapacity or death of the employer, where legally applicable.
  • Any other grounds provided for under general employment legislation.

Specific Grounds Related to Household Employment

The regulations also allow termination for reasons connected to the needs of the household, provided these reasons are properly justified:

  • A reduction in household income or an unexpected increase in household expenses.
    • For example, job loss or a significant drop in income.
  • A substantial change in the household’s needs.
    • For example, relocating to a new residence, admission of a dependent family member to a care facility, or the end of the need for caregiving services.
  • A loss of trust based on objective and verifiable circumstances.

Any loss of trust must be supported by specific, reasonable and proportionate facts rather than a mere subjective perception.

Formal Requirements

Where termination is based on one of the specific household-related grounds, employers must comply with the following requirements:

  • Provide written notice to the employee.
  • Clearly state the specific reason for termination.
  • Pay compensation equivalent to 12 days’ salary per year of service, up to a maximum of six months’ salary.
  • Observe the applicable notice period:
    • 20 days if the employment relationship has lasted more than one year.
    • 7 days if it has lasted one year or less.
  • Alternatively, the employer may compensate the employee in lieu of notice.

During the notice period, full-time employees are entitled to six paid hours per week to search for new employment.

Consequences of non-compliance

Failure to meet these requirements may have significant legal consequences:

  • If written notice is not provided or compensation is not paid, the termination may be presumed to constitute a dismissal, with the corresponding legal implications.
  • Failure to provide the required notice does not automatically convert the termination into a dismissal, but the employer must compensate the employee for the notice period not observed.

End of No-Fault Withdrawal

Following the 2022 reform, employers can no longer terminate a domestic worker’s contract through a unilateral no-fault withdrawal mechanism. Any termination must be based on legally recognized grounds or one of the general grounds established in employment legislation.

Social Security Obligations

Once the employment relationship has ended, the employer must notify Social Security and complete the employee’s deregistration within the applicable deadlines.

In all cases, contract termination must be handled carefully and in accordance with the applicable regulations to minimize the risk of disputes or legal challenges.

For specific situations, addwill‘s Labor Department can provide tailored advice to ensure the procedure is carried out correctly.