Since April 3, 2025, workers have had it easier to break their contract if their company does not pay or delay their salary. The new wording of Article 50 of the Workers' Statute by Organic Law 1/2025, clarifies what is meant by non-payment or serious delay. This is a relevant change for both workers and companies.
Organic Law 1/2025, of January 2, which came into force on April 3, 2025, introduces an important reform of Article 50 of the Workers’ Statute (ET), establishing more precisely when non-payment or delay in salary justifies the termination of the contract at the employee’s will, with the right to compensation for unfair dismissal.
With this reform, the legal uncertainty that existed until now is eliminated, as it was left to judicial discretion to assess the seriousness of the non-compliance. Since April:
- Non-payment shall be understood as the non-payment of three full monthly salary payments within one year, even if they are not consecutive.
- There will be delay if the salary is paid more than fifteen days late with respect to the agreed date, being cause for termination when this occurs for six months in a year, even if they are not consecutive.
This gives the employee a new power: if these requirements are met, he/she can break the employment contract and claim compensation equivalent to that of unfair dismissal.
Consequences for the company
- Repeated non-payment or delay in payment of wages has serious consequences, which cannot be justified by economic reasons.
- In addition to the risk of indemnified termination of the contract, the following are also generated:
- Surcharges of 10% for late payment (art. 29.3 ET).
- Very serious infringements, with the risk of sanctions by the Labor Inspectorate.
The best solution is still to comply with the timely payment of the salary or to seek alternative measures before generating a major legal and economic conflict.
Streamlined procedure for claiming unpaid salaries
Thanks to Royal Decree-Law 6/2023, in force since March 20, 2024, workers who denounce non-payment or salary delays will have access to an urgent and preferential procedure:
- Appointment of hearing in 5 days from the admission of the claim.
- Judgment within 5 more days after the trial.
This mechanism, together with the new wording of art. 50 ET, accelerates the judicial response and improves protection against repeated abuses.
The reform represents a paradigm shift in the defense of the right to wages. Gone are the doubts as to whether three non-payments were sufficient or whether a two-week delay was serious or not. Now the law specifies what is considered serious non-compliance, and workers have clearer tools to react.
For companies, there is a need to review their payment policy and provide alternatives to avoid labor disputes that could be very costly.
For more information, please contact Labor consulting
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