Dismissal for objective causes, these are all the reasons for dismissal

Currently, the Workers' Statute provides for a series of legal reasons that allow the employer to terminate the employment relationship with an employee under more favorable conditions. This is what is known as dismissal for objective reasons. Here we would like to explain what these reasons are and what the consequences are for the employee.

What is dismissal for objective causes?

Let us start from the premise that the Workers' Statute is designed to protect employees against possible abuses by their employer. However, it also provides that companies do not have to put up with certain situations.

These situations are provided for in Article 52 of the Workers' Statute, which gives the employer the possibility to terminate the employment relationship whenever certain circumstances arise. These are defined as "objective causes", since in order to benefit from them it is necessary to prove that they are true.

Objective grounds for dismissal

In total, this legislation provides for 9 objective causes for dismissal by this means. However, in order to explain them more simply, we will divide them into two main sections.

Dismissal for technical, economic, organizational and production reasons.

In this case, fair dismissal for objective causes is motivated by the company's own circumstances, not by the employee. We will define these situations more precisely below:

• Technical causes. In order to proceed with this type of objective dismissal, the employer must demonstrate that changes have taken place in the production model that no longer require the employee. This would be the case, for example, of the installation of machinery to replace manual labor.
• Economic reasons. The employer can allege that he is making losses or that he expects to make losses in the short term due to a reduction in his volume of income. To prove this, a comparison must be made with the sales levels recorded in the same quarter of the previous year.
• Organizational causes. That is to say, when you make a change in the systems and methods of work organization that lead, for example, to stop specifying a certain phase. For example, we could speak here of the outsourcing of the cleaning service, which makes it no longer necessary to have certain employees on staff.
• Production reasons. Specifically, this refers to possible changes in demand for the products sold by the company, which may become obsolete or go out of fashion and no longer require specific labor.

In turn, we must include here the cause known as "insufficient budget appropriation". Specifically, it refers to non-profit organizations that depend on the Public Administration. If they cease to receive the subsidies that allowed them to develop their activity, they can dismiss their permanent employees alleging objective causes.

Dismissal for objective causes associated with the employee

Obviously, no employer is obliged to continue paying an employee who does not fulfill his contractual obligations. In this regard, the following are also causes for objective dismissal:

• Ineptitude of the employee. It is possible for an employee to lie on his resume and, subsequently, be incapable of performing the tasks for which he has been hired. This inefficiency does not have to be borne by the employer, who may dismiss the employee alleging an objective cause.
• Lack of adaptation. It may also happen that the company makes significant technical changes, but wishes to keep the employee on the payroll. However, if the employee is unable to adapt to these changes, he/she may be dismissed.
• Absenteeism. 20 % of the working day for 2 consecutive months and 5 % of the total during the last 12 months, as well as 25 % in 4 discontinuous months during the last year. Since February 2020, these absences or absences from work must be unexcused. Previously this was not the case.

Compensation for dismissal due to objective causes

Evidently, the worker dismissed for objective causes becomes legally unemployed. In this sense, he/she will be entitled to receive an indemnity equivalent to 20 days of salary per year worked, with a maximum limit of 12 months of salary.

In addition, you will receive the severance payment, which will include the days of vacation not taken, the equivalent parts of the extraordinary payments not paid, the days of salary of the month in which the dismissal takes place, etc. You will also receive the company certificate that will allow you to collect the unemployment benefit from the SEPE, if you meet the requirements for it.

What happens if the employer cannot prove the existence of objective causes?

As we said before, the reason why they are called "objective causes" is that the employer must prove that they really exist. But, as in the case of any dismissal, the employee has the possibility of challenging it if he/she does not agree.

In this case, as long as there is no prior agreement between the parties, it will be a judge who will decide whether the dismissal is fair or unfair. If the employer justifies the alleged cause and, in addition, has complied with the legal procedure (15 days' notice with 6 hours of paid leave per week to look for another job, communication of the cause in writing and delivery of the severance payment and the corresponding indemnity), the termination decision will take effect in the specified terms. On the other hand, if this is not the case, two things can happen:

• The judge considers that the dismissal is null and void. This can only occur if the dismissal is the result of discrimination or if it violates fundamental rights and freedoms such as, for example, maternity and paternity leave or circumstances arising from pregnancy. The employer will be obliged to reinstate the employee, paying him/her the processing wages.
• The judge considers that the dismissal is unfair. The judge considers that the dismissal is unfair and, therefore, gives the employer the choice between reinstatement of the employee by paying the processing wages or dismissal with an increase in the indemnity. This would be equivalent to 33 days of salary per year worked with a maximum of 24 monthly payments for the period from February 2012 to the present and 45 days per year worked with a maximum of 42 monthly payments for the period prior to that date.

It is important to remember that the causes for unfair dismissal are not provided for anywhere. Only a judge can determine that there is an employment termination of this type if the circumstances are present. In any case, we recommend that you consult a labor lawyer if you have any further doubts regarding dismissal for objective causes according to the Workers' Statute.