How can I know the estimated costs for offboarding a Team Member? (Spain)

When parting ways with a Team Member, it’s important to have an idea of the costs of offboarding. Offboarding costs vary greatly depending on the country of employment, offboarding reason, benefits, and more. 

To help provide estimated offboarding costs upfront, Oyster launched an offboarding cost calculator (beta) when initiating offboarding requests in Spain (more countries will be added soon). 

The calculator instantly provides an estimate of the potential cost of offboarding a Team Member based on the offboarding reason, date, and other relevant information that you supply through the offboarding flow.

Please note that the calculator doesn’t take into account all of the specific details and circumstances of your offboarding request nor the potential hidden costs caused by the complexity of implementing a termination in a given country, both of which may have an impact on the final offboarding cost calculation. 

Although these offboarding costs are estimates and are most likely to change after final offboarding date and payroll calculations, they serve as a good starting point and can help you when making offboarding decisions. 

How can I see estimated offboarding costs?  

You’ll be able to see the estimated offboarding costs when initiating an offboarding request for a Team Member in Spain. This information will be available to you in the last step of offboarding request flow.
Not sure how to initiate an offboarding flow? Check out the steps here.

How is severance pay calculated?

Severance pay is determined by the type of offboarding you select. Some offboarding types like resignation and fair disciplinary dismissal don't require the payment of severance in Spain. In case you have selected a fair objective dismissal type, severance amounts to 20 days of salary per year of service.

It is common practice in Spain to settle on higher severance in case the offboarding reason may not be sufficiently justified/proven or to avoid litigation (+ 13 days of salary per year of service in case of an unfair objective dismissal, + 33 days of salary per year of service in case of an unfair disciplinary dismissal). The calculator does not take into account these options.   

How is notice pay calculated?

Notice pay is also calculated by the type of offboarding you select, which may amount to 15 days notice. Providing notice may extend the selected termination date, unless payment in lieu of notice (PILON) is offered to a Team Member.

In case of resignation, your Team Member has to provide a 15 days notice, during which their salary is due.

When should I not use the calculator?

This calculator may not be used in case employees are protected against dismissal, i.e. during pregnancy or maternity/paternity leave.


Disclaimer: It is essential to understand that the estimates provided by the offboarding calculator are not to be regarded as final, nor a cap on offboarding costs. The calculator is provided for informational purposes only and Oyster will not be held liable for additional costs that exceed the estimated figures.

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