Table of Contents
- Intro
- What an inappropriate dismissal implies
- Where readmission is impossible: Article 110.1.b) LRJS
- The processing wages
- The FOGASA: what it pays and with what limits
- The waiting: why trials take so long
- Real case
- Summary
- Frequently asked questions
- Conclusion
1. Introduction
Winning a dismissal trial doesn't always mean charging. When the company has no goods or money to pay, the worker can find a favourable sentence and an empty account. In these cases, there is the Wage Guarantee Fund (FOGASA), which guarantees the collection of part of the compensation and the wages. Plotting demand well from the start is key to getting to it as soon as possible.
2. What an inappropriate dismissal implies
Where the judge declares a dismissalthe company must choose to readmit the worker or to pay him an allowance of 33 days of salary per year worked. If you choose readmission, you must also pay the processing wages, that is, the wages that have been lost since the dismissal.
3. Where readmission is impossible: Article 110.1.b) LRJS
If the company has closed or ceased to operate, readmission is not possible. In order not to waste any time, the worker may request that, if the case is declared to be incompetent, the judge exacts the employment relationship in the judgment itself, according to the Article 110.1.b of the Law on Social Jurisdiction.
This avoids having to deal with an irregular readmission incident and can be moved directly to the execution of the sentence. We also explain this in our article about what happens when the company does not come to trial for dismissal.
4. The processing wages
Where readmission is impossible and the relationship is extinguished in judgment, the worker may, in addition to the compensation for his / her seniority, receive the processing wages. The longer the procedure is extended, the more this amount is, which in long procedures can be a very important part of what is charged.
5. The FOGASA: what it pays and with what limits
If the company is declared insolvent in the execution, the Salary Guarantee Fund assumes payment of a part of the amounts due, in accordance with the Article 33 of the Staff Regulations:
- Salariesincluding processing: up to a maximum of 120 days, with a daily limit of twice the minimum inter-occupational wage.
- Compensation: up to an annual wage, with the same daily limit and calculated on a basis of 30 days per year worked.
Therefore, in long procedures it is common for processing wages to exceed the limit covered by the FOGASA. However, the fund ensures that the worker collects a significant amount even if the company has nothing.
6. The waiting: why trials take so long
The social courts are saturated, and in many cities a dismissal trial can be held more than a year after the application is filed. It is frustrating, but filing the complaint on time, within 20 working days of dismissal, is essential not to lose the right to claim.
7. Real case
The video is recorded at the end of our client's trial, Ernesto. The application was filed in January 2025, when it was in session, but the trial was not held until 21 September 2026. We have requested the declaration of non-provenance and the termination of the contract under Article 110.1.b (LRJS), because readmission is impossible: this will not be the case for the irregular readmission incident and will go directly to the execution.
The company is expected to be declared insolvent. Our client will collect the compensation for its seniority and the processing wages, which will exceed the legal limit, so it will end up collecting from the Salary Guarantee Fund. Was it worth it? It'll be worth it when you have the money in your wallet.
8. Summary
| Appearance | What does it mean? | Legal basis |
|---|---|---|
| Unappropriate dismissal | Readmission or compensation of 33 days per year | Article 56 ET |
| Impossible readmission | Extinction in the judgment, no readmission incident | Article 110.1.b) LRJS |
| Processing wages | Wages lost during the procedure | Staff Regulations |
| Insolvent company | FOGASA pays wages up to 120 days and compensation up to an annuality, with limits | Article 33 ET |
| Deadline to sue | 20 working days after dismissal | Article 59.3 ET |
9. Frequently asked questions
What if the company that fired me has no money?
If its insolvency is declared, FOGASA pays part of the compensation and wages due, with legal limits.
How much does the FOGASA pay?
Up to 120 days' pay and up to an annual compensation, with a daily limit of twice the minimum inter-professional wage.
What are processing wages?
These are the wages the worker ceases to receive from dismissal to sentence or readmission, where applicable.
Why call for the termination of Article 110.1.b?
Because if readmission is impossible, it allows the sentence to directly extinguish the relationship and to be carried out without further procedure.
10. Conclusion
The fact that the company is insolvent does not mean that the worker remains uncharged. To ask for termination in sentence when readmission is impossible and then to go to the FOGASA allows to recover much of what is appropriate, even if it has to be expected. In the end, a trial is worth it when the money comes to the worker's account.
In the area of Labour law from Leynver Lawyers we accompany you from the lawsuit to the collection, also in front of the FOGASA.
