There are two fundamental ways to end an employment relationship: dismissal (or non-renewal) and voluntary resignation. The decision to leave can come from the employer or the employee, and that choice significantly affects whether the worker is entitled to severance pay and unemployment benefits. Yet there is a third path that allows an employee to exit with a defined amount of compensation. What happens when an employee is effectively dismissed but seeks to obtain compensation through a different route?
The second option outlined here is the route taken by a worker before Social Court No. 4 in Vigo. The individual had been employed by the company for nearly a year and appeared in court in August 2022 to request the termination of the employment relationship. What is the essential factor that underpins success in such cases? The key is showing that the request to terminate the contract rests on a qualifying reason, commonly described as “just cause”.
In this case, the employee presented two primary arguments: outstanding salary payments and the employer’s violations related to temporary incapacity for work. The court’s decision, issued in the following November, notes that the employee’s salary arrears began in the month he joined the company in 2021 and escalated five months later. The worker did not receive payroll for the December month or for April and May of 2022, accumulating a debt of 2,555.45 euros.
Additionally, the employee was on maternity leave until mid‑April and had to take medical leave in early May. The judge also verified that the employer had failed to provide the appropriate benefits to the affected party, preventing the use of direct payments from the Mutual Society or from Social Security.
With these facts laid out, the judge sided with the employee. The termination of the employment relationship was declared valid, and the employer was ordered to pay the 2,555 euros owed by the worker, plus 10 percent interest on the overdue amount. The court also awarded an additional compensation of 2,414.36 euros.