Glossary

Finiquito: Document and final settlement received by the employee at the end of the employment relationship, including outstanding wages, unused holidays, and other amounts.

Severance pay / Compensation: Sum of money the employer must pay the employee in certain cases of contract termination (e.g., unfair dismissal).

Reinstatement: The employee’s right to return to their position when a judge declares the dismissal null or the employer chooses to reinstate instead of paying compensation.

Collective agreement: An agreement negotiated between employee representatives and employers that regulates specific working conditions in a sector or company.

Conciliation: A prior and mandatory procedure in most employment claims to attempt reaching an agreement without going to court. Termination of the contract: End of the employment relationship, whether due to dismissal, voluntary resignation, retirement, or other causes.