The finiquito is the document by which an employer and employee settle all outstanding financial obligations at the end of an employment relationship. It is, in essence, a closing account of the employment. Despite its routine nature, the finiquito is one of the most litigated employment documents in Spain — errors in holiday calculations, incorrectly pro-rated extra payments or unjustified delays in payment generate claims before Labour Courts on a daily basis.
This guide explains when the finiquito must be paid, what it must contain under Art. 49 of the Workers’ Statute (Estatuto de los Trabajadores), how to calculate it and what steps to take if your employer does not pay.
Legal deadline: how long does the employer have to pay?
Art. 49.2 of the Workers’ Statute (ET) provides that, at the moment of contract termination, the employer must give the employee a proposed settlement of amounts owed. The provision does not set a specific number of days but states that payment should be simultaneous with termination.
Case law interpretation: The Supreme Court and the Superior Courts of Justice (Tribunales Superiores de Justicia) have broadly accepted that employers have a reasonable margin of working days to make the payment, particularly when the calculation requires verification of service periods, the applicable collective agreement or intercalated sick leave. In practice, courts have not automatically imposed the late-payment surcharge for delays of up to five working days, though the outcome depends on the specific facts and the applicable collective agreement.
Collective agreements with specific deadlines: Many sectoral or company-level collective agreements set a specific payment deadline (often five or ten working days). Where a collective agreement is more favourable to the employee than the ET, the collective agreement prevails.
Consequences of unjustified delay: If the employer does not pay the finiquito within the applicable deadline, the employee may claim the outstanding amount plus the late-payment interest provided by Art. 29.3 ET (10% per annum in 2026, or the legal rate of money plus two points if higher). This surcharge runs from the date payment was due.
What the finiquito must include
The finiquito is a settlement of earned and unpaid amounts — it is not compensation for the termination itself:
1. Salary for the current period
Salary accrued for the days worked in the month of termination, pro-rated to the last day worked. If termination occurs on 15 May, the finiquito includes fifteen days of May salary (monthly salary ÷ 30 × 15, or the formula in the applicable collective agreement).
2. Pro-rated extra payments (pagas extraordinarias)
Most collective agreements provide for two annual extra payments (typically in June and December, though some agreements provide more). The employee is entitled to the proportional share accrued from the start of the relevant half-year to the date of termination.
Example: If termination occurs on 30 April, the employee has accrued four months of the June extra payment (January through April). The December payment, for the July–December period, has not yet started to accrue.
3. Untaken paid holidays
The employee is entitled to 30 natural days of paid holiday per year worked (or more if provided by the collective agreement). If, at the date of termination, not all holidays for the current year have been taken, they must be compensated in cash.
Calculation: Days of holiday accrued in the current year × daily gross salary = amount payable.
A worker earning €2,500/month who leaves on 30 June has accrued 15 days of holiday. If they have taken only 5 days, they are owed 10 days in cash: 10 × (€2,500/month ÷ 30) ≈ €833.33.
4. Outstanding salary supplements
Any salary supplement accrued under the collective agreement or individual contract (seniority premium, transport allowance, quarterly bonus, etc.) that has not yet been paid.
What the finiquito does NOT include
The redundancy compensation (indemnización por despido), where applicable, is a separate document. Its amount depends on the type of termination:
| Type of termination | Statutory compensation |
|---|---|
| Unfair dismissal (despido improcedente) | 33 days/year of service (max. 24 months’ pay) |
| Objective dismissal (despido objetivo) | 20 days/year of service (max. 12 months’ pay) |
| Expiry of fixed-term contract | 12 days/year of service |
| Voluntary resignation | None |
| Null dismissal | Reinstatement + back pay |
Confusing the finiquito with redundancy compensation is one of the most common errors: some employees sign the finiquito believing it includes their redundancy payment, when in fact it only covers ordinary settlement amounts.
How to check whether the finiquito is correct
Before signing, verify the following:
Step 1: Check the start date and recognised seniority. An error in the employment start date can affect the calculation of extra payments and holidays.
Step 2: Verify the salary base used. The finiquito must be calculated on the full gross salary, including all fixed salary supplements — not just the base salary in the collective agreement.
Step 3: Count your accrued holidays. Request the company’s holiday register for the current year. You are entitled to verify how many days you have accrued and how many you have taken.
Step 4: Check the extra payments. If extra payments are paid on specific dates (rather than spread monthly), ensure the finiquito includes the proportional share of the nearest upcoming payment.
Step 5: Ask for 24–48 hours to review it. No rule requires you to sign the finiquito on the spot when the employer presents it. You can and should ask for time to review it. If the employer refuses or pressures you to sign immediately, treat this as a warning sign.
If the employer does not pay: steps to take
1. Informal written demand (recommended, not mandatory)
Send a certified letter or an email with read receipt to the employer demanding payment within a reasonable period (72 hours or five working days). This communication interrupts the one-year limitation period and may resolve the situation without further steps.
2. Conciliation application to the SMAC (mandatory before court)
If the employer does not pay after your written demand, you must submit a conciliation application (papeleta de conciliación) to the SMAC (Servicio de Mediación, Arbitraje y Conciliación) of your autonomous community. This is a mandatory step before you can file a court claim. The SMAC will schedule a conciliation hearing within approximately 15–30 days.
3. Conciliation hearing
If the employer agrees to pay at the hearing, an agreement is recorded and the process ends without a court case. If the employer does not appear or refuses to settle, the SMAC issues a certificate of failed conciliation (acta sin avenencia or intentado sin efecto), which opens the door to court proceedings.
4. Labour Court claim (Juzgado de lo Social)
With the SMAC certificate, you can file a claim at the Labour Court (Juzgado de lo Social) with jurisdiction over your workplace or your home address. Claims for unpaid salary amounts (reclamación de cantidad) are relatively straightforward and are processed more quickly than dismissal claims in most courts.
For a personalised assessment of your situation, consult our employment law team.
After collecting the finiquito: social benefits
Once you have collected the finiquito, you must take the following steps to protect your social benefits:
Request the employer’s certificate (certificado de empresa). Without this document, the SEPE (State Employment Service) cannot process your unemployment benefit application.
Register as a jobseeker at your autonomous community’s public employment service, ideally within 15 working days of contract termination — delays may result in a loss of benefit days.
Keep all documentation: the signed finiquito, your original employment contract and the dismissal letter (if applicable). These documents are essential for any subsequent claim and for evidencing your contribution periods to the SEPE.
Has your employer failed to pay your finiquito or do you believe the amount is incorrect? Contact our employment law team for a free initial review. We act throughout Spain, with a particular presence in Málaga and Madrid.
