What are the objective causes of dismissal in an employment contract?

Causas objetivas de despido
Published on: 12 December 2018

Table of contents

Dismissals are the main reasons why workers resort to the services of employment lawyers. Although the law specifies the objective causes for which the contractual relationship between a company and an employee can be interrupted, there are many cases in which disputes arise. Here we would like to talk to you about exactly what they are in order to help you understand them better.

What are the reasons for the termination of an employment contract?

All the information related to the reasons for which an employment relationship between an employee and a company can be terminated is set out in the Workers' Statute. Furthermore, it specifies that this can be done either on the initiative of the employer or the employee, or even by mutual agreement between the two

By way of summary, we could say that these are the reasons contemplated for the termination of the employment contract: 

  1. Mutual agreement. 
  2. Cause validly stated in the employment contract. 
  3. Abandonment of the job by the employee. 
  4. Resignation. 
  5. End of the term specified in the employment contract. 
  6. Retirement, disability or death of the employee or the employer. 
  7. Breach of the employer's obligations under the contract. 
  8. Force majeure or extinction of the legal entity that constituted the company. 
  9. Collective dismissals. 
  10. Disciplinary reasons. 
  11. Objective causes. 

Objective causes for dismissal

The Workers' Statute, knowing full well that this last point may be the most controversial and controversial of all, specifies the conditions and requirements that must be met in each of the causes classified as objective. It also establishes the way in which the employer must proceed and the effects that the dismissal determination will entail for both the worker and the employer

Moreover, the fact that there is an objective cause does not mean that the dismissal cannot be unfair. In this sense, in order for it to be fair, the current regulations must be fully complied with, which is not always the case. On the other hand, when this does not happen, the employer has the option of choosing between paying the compensation due to the worker or reinstatement. 

What are the objective causes specified in the Workers' Statute?

Generally speaking, it is possible to distinguish four objective causes for dismissal. These are

Ineptitude of the worker.

The term 'ineptitude' may sound rather bad within this cause included in the Workers' Statute. However, what it exactly refers to is the invalidity of the subject to carry out the functions directly associated with the post for which he/she has been selected. 

It should be noted, in this regard, that in order for an employer to be able to allege this cause to terminate the employment contract, he must prove the worker's incompetence and, furthermore, demonstrate that it has been supervened once the contract has been formalised or that he has become aware of it after the signing of the contract. Moreover, it cannot be alleged during the probationary period. 

Lack of adaptation on the part of the worker

This reason refers solely and exclusively to adaptation to technical changes related to the job. In other words, an employer cannot dismiss an employee simply because he considers that he has not integrated into the team he forms together with his colleagues, for example. 

It should be borne in mind that technical progress and advances make it particularly difficult for certain employees, especially those in the later stages of their careers, to adapt to the new requirements of the job they occupy. 

However, this is not sufficient to justify dismissal. The employer is obliged to offer the employee a training and adaptation period of at least two months to enable them to acquire the new knowledge required by their position. If, after that time, the employee does not demonstrate that he has mastered the new skills, then the company may terminate the contract for this objective reason. 

Absence from work

It must be said that this objective cause covers both justified and unjustified absences. However, as is evident, the Workers' Statute establishes a series of minimum requirements without which it cannot be invoked. 

Firstly, the days of absence from work due to a general strike, an accident or a serious illness that entails at least 20 consecutive working days off work do not count towards the termination of the contract for this reason. Neither will non-attendance for reasons related to maternity or holiday periods. 

But what percentages are specified in the Workers' Statute? 

  1. Based on the last 12 months, non-attendance for 5 % or more of working days. 
  2. For the last two months, 20 % of working days. 
  3. Based on the last 12 months, 25 % of the working days spread over 4 discontinuous months. 

Other objective causes

This includes other objective causes that may lead to the termination of the employment contract:

  1. Technical reasons: these refer to changes in the production system that make the worker's work no longer indispensable. For example, the purchase of automatic machinery in a packaging plant can be invoked. 
  2. Economic reasons: this is probably one of the most controversial points, as it is not necessary for the company to demonstrate negative economic results, but rather a simple forecast that it will have negative economic results in the near future. In fact, even a decrease in income, even if there are still profits, may be sufficient to allege this objective cause to proceed unilaterally to terminate the employment relationship. All that is needed is to show that this has happened or will happen for three consecutive quarters. 
  3. Production causes: these refer to a reduction in the demand for the services or products offered by the company that leads to the inability to maintain the bulk of the workforce. 
  4. Organisational causes: these are changes in the methods of organising production or in the working methods themselves that require the elimination of certain jobs. 

A tenor de todo lo que le hemos comentado en este artículo, seguro que ha entendido fácilmente las razones por las cuales son infinidad de trabajadores los que recurren a los servicios de los abogados laborales por culpa de un despido. Y es que, en muchas ocasiones, demostrar que este se ha producido por una causa objetiva puede no ser fácil. De igual modo, alegar una con el propósito de ahorrar en la indemnización con la esperanza de que el empleado no imponga una demanda en los tribunales competentes es más habitual de lo que pueda creer. 

If you have any doubts about the objective causes that can terminate an employment relationship or if you are in a conflict situation for this reason, do not hesitate to contact us.

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