Workers Facing Company Payment Issues May Qualify for Unemployment, severance
Madrid, Spain – September 30, 2025 – Employees whose companies fail to meet payroll obligations or experience meaningful payment delays may have grounds to claim unemployment benefits and severance packages, according to recent legal interpretations gaining traction across Spain. This advancement offers a potential safety net for workers facing financial uncertainty due to employer insolvency or protracted payment issues, a situation increasingly relevant amid ongoing economic headwinds.
Teh possibility of together receiving unemployment and severance stems from a nuanced understanding of Spanish labor law.while traditionally considered mutually exclusive, legal experts now argue that when a company’s inability to pay wages constitutes a dismissal – even without a formal notice – workers are entitled to both unemployment benefits, triggered by the loss of employment, and the severance pay stipulated in their contracts or collective bargaining agreements. This is especially pertinent in cases of ERTEs (Temporary Employment Regulation Files) where companies struggle to maintain payroll despite remaining operational.
“If a company consistently fails to meet its wage obligations,it’s effectively terminating the employment contract,” explains labor lawyer Ana Pérez,of the firm Bufete Legal. “This triggers the right to severance, calculated based on seniority, and simultaneously opens the door to unemployment benefits as the employee is now legally considered unemployed.”
The conditions for claiming both benefits are stringent. Workers must demonstrate consistent non-payment or considerable delays – typically exceeding a month – and be able to prove they have actively sought resolution wiht their employer. Documentation, including pay stubs, dialog records, and any official notices from the company, is crucial.
This situation is becoming increasingly common as economic pressures mount on businesses. Data from the Ministry of Labor indicates a 15% increase in reported wage arrears cases in the first half of 2025 compared to the same period last year.Experts predict this trend will continue if broader economic conditions do not improve.
Workers considering this course of action are advised to seek legal counsel to assess their specific circumstances and ensure they meet all eligibility requirements. The process can be complex, and navigating the legal framework requires specialized knowledge.
