The Importance of the Principle of Justification in Firing: The Paradox of "Free Paid Dismissal" in Spanish Labour Law in Times of Crisis

The Importance of the Principle of Justification in Firing: The Paradox of "Free Paid Dismissal" in Spanish Labour Law in Times of Crisis This paper describes Spanish legislation on dismissal, as amended after the reforms passed between 2010 and 2012, at the height of the economic crisis. The analysis, conducted along juridical lines, focuses on the transition from a system based on limitation of the employer's power to terminate the employment contract at will, prescribing specific grounds for dismissal, to a "free paid dismissal" model. The evolution of Spanish legislation shows that opening the way to freedom of dismissal may determine economically irrational behaviour on the part of the employer, jeopardising the efficiency of the labour market.