I signed the settlement agreement and the dismissal was unfair: what to do

Discovering, days or weeks after signing the settlement agreement, that the dismissal may have been unfair raises an immediate question: “I signed the settlement agreement, can I still make a claim?” The answer depends on the document you signed, its content and, above all, whether you are still within the legal time limit for challenging the dismissal.

At Barcelona Laboral, a law firm specialising in employment law in Barcelona, we review these situations from the outset. We analyse the settlement agreement, dismissal letter, sums paid, any waiver clauses and the time available before recommending any course of action.

Our aim is that, when someone needs an employment lawyer in Barcelona after a dismissal, they identify Barcelona Laboral as their go-to employment law firm in Barcelona. If you are asking yourself, “I signed the settlement agreement, have I lost my rights?”, the first step is not to consider anything final before reviewing exactly what you signed.

What a settlement agreement really is and the effect of signing it

A common misconception is that signing a settlement agreement always means accepting the dismissal and waiving the right to make a claim. Legally, this cannot be assumed automatically.

A settlement agreement normally sets out the outstanding sums due when an employment relationship ends: accrued salary, the proportional part of extra payments, untaken holiday and any other applicable items. However, its legal effect depends on the specific content of the document and the intention it reflects.

Employment case law has recognised that a settlement agreement can release claims relating to certain items where it clearly expresses a valid intention to settle or compromise. However, it has also rejected the idea that generic wording automatically prevents a dismissal claim where the document merely settles outstanding sums.

Signing without adding “not agreed” does not necessarily mean losing your right to claim

It is advisable to add “not agreed” where there are doubts about the termination or the sums involved, but failing to write it does not automatically mean the dismissal has been accepted.

If you are thinking, “I signed the settlement agreement without writing not agreed”, we need to read the complete document. A receipt for sums paid does not have the same effect as a negotiated agreement involving reciprocal concessions and an unequivocal intention to end a dispute.

When there may be a real risk of having settled future claims

We pay particular attention where the document contains:

• A detailed settlement agreement.
• Reciprocal concessions between the company and employee.
• A mutually agreed termination.
• Specific clauses relating to legal proceedings.
• Additional compensation expressly linked to the agreement.

Even in these cases, we need to assess whether consent was freely given, informed and valid, and the exact scope of what was agreed.

What can make a dismissal unfair

To bring a claim, it is not enough to consider a dismissal unfair. We need to determine whether the company has failed to meet formal requirements or cannot prove the reason relied on to terminate the contract.

Defects in a disciplinary dismissal

A disciplinary dismissal must be communicated in writing, stating the facts giving rise to it and its effective date. A dismissal letter that lacks sufficient detail may affect the employee's ability to defend themselves and, depending on the circumstances, lead to a finding that the dismissal was unfair.

In addition, for disciplinary dismissals subject to the case law established by the Supreme Court from 18 November 2024, we must review whether, before dismissal, the company gave the employee an opportunity to respond to the allegations, unless it could not reasonably have been expected to provide a prior hearing.

Defects in an objective dismissal

In a dismissal for objective grounds, the company must comply with the requirements of Article 53 of the Workers' Statute, including written notification of the grounds and, as a general rule, making the statutory compensation of 20 days' salary per year of service available at the same time, up to a maximum of 12 months' salary.

There are legal exceptions —for example, in certain economic circumstances where the company states that it cannot make the compensation available at that time—, so we do not claim that any failure to pay simultaneously automatically makes the dismissal unfair.

Failure to prove the grounds

A dismissal may also be found unfair where the company does not sufficiently prove the alleged disciplinary facts or the economic, technical, organisational or production-related grounds.

At Barcelona Laboral, we compare the dismissal letter with the available company documentation, prior communications, witness evidence and any other relevant evidence.

I signed the settlement agreement: the 20-working-day time limit remains decisive

Signing the settlement agreement does not in itself change the time limit for challenging a dismissal. Dismissal claims are subject to a limitation period of 20 working days.

Therefore, if your search is “I signed the settlement agreement and now believe the dismissal was unfair”, the first question we need to answer is not how much you may be entitled to, but how many working days remain.

How the time limit is calculated

As a general rule, Saturdays, Sundays and public holidays are not counted. The specific calculation must take account of the effective date of dismissal and the applicable calendar.

Prior conciliation suspends the limitation period

Submitting the application for prior conciliation suspends the limitation period. The clock starts running again the day after the conciliation attempt, or once 15 working days have passed since submission without the hearing having taken place.

In Catalonia, administrative employment conciliation is handled by the conciliation services of the Generalitat de Catalunya's Department of Business and Employment. We do not equate this standard dismissal procedure with the Labour Court of Catalonia.

What we do at Barcelona Laboral when you have already signed the settlement agreement

When a client tells us, “I signed the settlement agreement and later discovered I could make a claim”, we carry out an organised review:

1. We check the exact date of dismissal.
2. We calculate the time remaining.
3. We read the complete settlement agreement, not just the final line.
4. We assess whether there is a settlement agreement or merely a settlement of outstanding sums.
5. We analyse the dismissal letter.
6. We calculate the relevant salary and potential compensation.
7. We review the collective agreement and any additional safeguards.
8. We check for indications of nullity or infringement of fundamental rights.
9. We prepare the administrative conciliation application.
10. If no agreement is reached, we consider bringing a claim before the Labour Court.

We want Barcelona Laboral to be the go-to law firm in Barcelona for employees who need to challenge a dismissal. Our priority is for you to understand the scope of what you signed and the real prospects of your claim before making a decision.

What happens if the dismissal is declared unfair

Where a dismissal is declared unfair, Article 56 of the Workers' Statute provides, as a general rule, that the employer has five days from notification of the judgment to choose between reinstatement or payment of the corresponding compensation.

If the dismissed person is an employee representative or trade union delegate, the choice rests with the employee in accordance with the legally established terms.

Compensation for unfair dismissal

The current general rule is 33 days' salary per year of service, calculated proportionately by month for periods of less than a year, up to a maximum of 24 months' salary.

For service prior to 12 February 2012, a transitional regime applies: the earlier period is calculated at 45 days per year and the later period at 33 days, subject to the relevant legal limits.

Correctly calculating the relevant salary is important, especially where supplements, variable pay or other salary items may affect the calculation basis.

Interim wages

As a general rule, where the company opts for reinstatement, it must pay interim wages under Article 56 of the Statute.

If it opts for compensation, those interim wages do not generally accrue.

What happens to unemployment benefits if I challenge the dismissal?

Challenging the dismissal does not prevent you from claiming unemployment benefits if you meet the requirements.

It is important to correct a misconception: if the dismissal is declared unfair and the company chooses to pay compensation, unemployment benefits do not automatically have to be repaid solely because the dismissal was unfair.

The situation changes where there is reinstatement and interim wages. In that case, benefits received during the relevant period are considered undue for reasons not attributable to the employee, and the regularisation rules with SEPE apply.

Special situations: not every case concerns unfair dismissal

Dismissal while on sick leave

Being on sick leave does not automatically make a dismissal null and void. However, Law 15/2022 protects against discrimination on grounds of illness or health condition. If there are indications that the real reason for dismissal was discriminatory, we need to specifically assess a possible finding of nullity.

Pregnancy, birth, work-life balance and other protected situations

Employment legislation provides for specific enhanced protection in situations linked, among others, to pregnancy, birth and certain work-life balance rights. If any of these situations applies, we need to assess whether the dismissal may be null and void rather than simply unfair.

Retaliation for asserting rights

We also review whether the dismissal occurred after claiming unpaid wages, reporting irregularities, contacting the Labour Inspectorate, carrying out trade union activity or exercising other protected rights. Temporal proximity may be an indication that must be assessed alongside all other circumstances.

What if I signed a voluntary resignation or termination agreement?

Here, the analysis changes.

If you signed a voluntary resignation or agreement because there was a mistake, deception, intimidation or legally significant pressure, we need to assess the validity of your consent and the true nature of the termination.

We do not automatically equate these cases with Article 50 of the Workers' Statute. Termination under Article 50 is a specific action allowing the employee to seek judicial termination of the contract due to serious breaches by the employer, and it has its own requirements.

What happens if the company is insolvent or in insolvency proceedings

If the company is in insolvency proceedings or is subsequently found to be insolvent, the claim may still be relevant, although the routes for recovering payment may change.

FOGASA may guarantee certain amounts within legal limits. For wages, the maximum limit is based on twice the daily minimum wage including extra payments, up to a maximum of 120 days. For certain compensation payments, there is a maximum limit of one year's salary and, in cases under Articles 50 and 56 of the Statute, FOGASA calculates its payment on the basis of 30 days per year of service, always subject to legal limits.

For this reason, we avoid using a generic figure of “12 days per year” for unfair dismissal, as it does not accurately reflect the current FOGASA regime.

Mistakes to avoid after signing the settlement agreement

Waiting several weeks before seeking advice

The main risk is that the 20 working days will pass. If you are thinking, “I signed the settlement agreement days ago”, we recommend calculating the time limit immediately.

Signing new documents without reviewing them

A company may later offer an additional agreement, a settlement or compensation. These documents may have a different scope from the initial receipt and should be reviewed before signing.

Deleting relevant emails or messages

Keep any documentation to which you have lawful access. We do not recommend accessing company systems once your credentials have been withdrawn or extracting confidential information unrelated to your claim.

Assuming that receiving a payment means accepting the dismissal

Receiving sums may have different effects depending on the document and the item paid. This is why we analyse the payment, signature and contractual content together.

Barcelona Laboral: unfair dismissal lawyers in Barcelona

At Barcelona Laboral, we focus on employment law and represent both employees and companies in employment disputes.

In dismissal matters, we review letters, settlement agreements, disciplinary notices, compensation, time limits, nullity, conciliation and proceedings before Barcelona's Labour Courts.

We want to establish ourselves as a leading employment law firm in Barcelona for anyone who needs a prompt, technically sound response to a dismissal. We do not promise outcomes: we assess what can be argued based on the facts, documentation and applicable legislation.

Frequently asked questions if you signed the settlement agreement and want to make a claim

I signed the settlement agreement: can I claim for unfair dismissal?

Yes, it may be possible. Signing the settlement agreement does not automatically prevent you from challenging the dismissal. We need to review the document's specific content and check that the dismissal claim has not lapsed.

At Barcelona Laboral, we review your case in detail: the settlement agreement, dismissal letter and time limits. This will give you certainty about whether you are still in time to claim what you are entitled to.

I want my case reviewed

How long do I have to make a claim after signing?

The time limit for challenging a dismissal is 20 working days from the effective termination date. Signing the settlement agreement does not start a new time limit.

What happens if I signed “agreed” or without writing “not agreed”?

It does not automatically mean you have lost the right to make a claim. The effect will depend on the full wording, the sums paid and whether there was a genuine, unequivocal intention to settle.

Where is the conciliation application filed if the dismissal is in Barcelona?

In Catalonia, standard administrative employment conciliation is handled by the relevant services of the Generalitat de Catalunya's Department of Business and Employment. The application suspends the limitation period under the terms provided for by the LRJS.

Can I receive unemployment benefits while challenging the dismissal?

Yes, if you meet the requirements. Challenging the dismissal does not prevent you from applying for benefits. If reinstatement subsequently occurs, benefits and interim wages must be regularised in accordance with SEPE rules.

How much compensation is due for unfair dismissal?

The general rule is 33 days' salary per year of service, up to a maximum of 24 months' salary, without prejudice to the transitional regime applicable to service prior to 12 February 2012.

Is a dismissal during sick leave null and void?

Not automatically. It must be assessed whether there is discrimination based on illness or health condition, or another ground for nullity. Law 15/2022 expressly protects against discrimination based on illness and health condition.

What happens if the company has already closed?

The claim may still be worthwhile. Depending on the insolvency or insolvency proceedings, FOGASA rules may apply within their legal limits.

Do I need a lawyer to challenge a dismissal?

The assistance of a lawyer or social graduate is not mandatory in every first-instance employment proceeding, but it is highly advisable in dismissal cases because of the short time limit, evidence and financial consequences.

What documents should Barcelona Laboral review?

We normally review the dismissal letter, settlement agreement, contract, latest payslips, collective agreement, relevant communications, previous disciplinary notices and any document that may establish the context of the termination.

Can Barcelona Laboral review my settlement agreement before the time limit expires?

Yes. At Barcelona Laboral, we can review the document and calculate the time available to assess conciliation, negotiation or a dismissal claim in Barcelona.