The retraction of dismissal is a complex concept within Spanish labor law that often raises controversy. In particular, when a company communicates a dismissal and later tries to revoke it in order to issue a new one, questions arise regarding the legal validity of both decisions and the protection of the employee’s rights.
This article provides an in-depth analysis of the Judgment of the High Court of Justice of Aragón dated September 26, 2025, a landmark case that clarifies the limits of employer retraction and its legal consequences.
What the Retraction of Dismissal Means
The retraction of dismissal occurs when the employer, after notifying an employee of their dismissal, decides to revoke that decision before it produces its definitive effects. In other words, the company attempts to “go back in time” to keep the employment relationship alive and correct an error made during the dismissal process.
In practice, this often happens when the employer identifies procedural or substantive errors in the dismissal letter such as insufficient justification, missed deadlines, incorrect classification of the dismissal (disciplinary, objective, etc.), or failure to hold the required prior hearing in disciplinary cases.
Case Background: Judgment of the High Court of Justice of Aragón
In the case ruled by the Aragón Court, the company communicated a first dismissal on December 14, 2023, with immediate effect. However, days later, upon realizing a procedural defect — the omission of the mandatory prior hearing in disciplinary dismissals it decided to revoke the communication and temporarily reinstate the employment relationship to correct the error.
During that time, the company re-registered the employee with Social Security and carried out the required hearing. Finally, on December 29, 2023, it issued a second dismissal.
The employee, however, challenged only the first dismissal (December 14), while the company argued that this dismissal had no legal effect because it had been retracted — and that the second, unchallenged dismissal was the only valid one.
The Legal Key: Effectiveness of the First Dismissal
The High Court of Justice of Aragón analyzed whether the first dismissal, despite the employer’s retraction, had full legal effect.
The conclusion was clear: once a dismissal is communicated, it produces immediate legal effects, unless the employee expressly accepts the retraction before the effective date.
Therefore, the court ruled that the first dismissal was fully valid, and the employee’s legal action was admissible and not time-barred.
Legal Grounds for the Decision
The Court based its reasoning on established Supreme Court jurisprudence, which holds that a dismissal, once notified, cannot be unilaterally revoked by the employer if the employment relationship has already been terminated.
1. Irrevocability of a Dismissal Once Notified
Dismissal is a receptive act, meaning it takes effect from the moment the employee receives the dismissal letter. From that point on, the company cannot annul it on its own. Only if the employee voluntarily accepts the retraction can the employment relationship validly resume.
2. Need for Employee Consent
Retraction requires the employee’s explicit acceptance. If the employee does not agree to the retraction, the initial dismissal remains fully effective even if the company re-registers the employee or simulates a continuation of the employment relationship.
3. Effects of a Fictitious Reinstatement
Re-registering the employee with Social Security or holding a new hearing does not invalidate the first dismissal. Such acts are considered attempts at regularization without automatic legal effects on the termination.
When a Company May Validly Retract a Dismissal
There are exceptional situations in which retraction may be valid:
– If the dismissal has not yet taken effect, i.e., if the effective date is in the future and the company communicates the retraction before that date.
– If the employee expressly accepts the retraction, showing their willingness to continue the employment relationship.
In both cases, the employment relationship is never fully severed, allowing the company to issue a new dismissal letter without procedural irregularities.
Consequences for the Company and the Employee
For the Company:
A unilateral retraction without employee consent is invalid. Thus, the first dismissal remains effective, and the second may be declared null or unfair, depending on the circumstances. Additionally, if the employee is re-registered with Social Security without legal basis, the company could face penalties for improper registration.
For the Employee:
The employee retains the right to challenge the first dismissal, as it remains fully effective. The 20 working day deadline for filing a claim begins from the date of the first dismissal — regardless of any later retractions or fictitious rehirings.
Difference Between Retraction and a New Dismissal
It is crucial to distinguish between:
– Valid Retraction: Occurs before the effective date or with the employee’s express consent.
– New Dismissal: Occurs when, after the employment relationship has effectively ended, the company rehires and then dismisses again. In such cases, the second dismissal is a separate act and does not invalidate the first.
Supreme Court Doctrine on Retraction of Dismissal
The Spanish Supreme Court has consistently held that a dismissal, once communicated, cannot be unilaterally revoked by the company unless the employee consents.
Key rulings include:
– Judgment of July 21, 1998 (RJ 1998/6417)
– Judgment of March 26, 2013 (RJ 2013/3245)
– Judgment of October 18, 2017 (RJ 2017/4458)
All of them agree that retraction without express acceptance is ineffective, even if the employer claims a formal or procedural error.
Practical Lessons for Companies and HR Departments
– Carefully review the dismissal letter before communicating it. A drafting or procedural error can turn a disciplinary dismissal into an unfair one.
– Avoid unilateral retraction. If an error is detected, it can only be corrected if the employee formally accepts the retraction.
– Document all retractions in writing. The employee’s acceptance must be clear and verifiable.
– Comply with mandatory procedures. In disciplinary dismissals, the prior hearing is essential. Its omission can invalidate the dismissal.
– Seek legal advice before acting. The complexity of labor law and case law makes professional analysis essential in every case.
The retraction of dismissal is a complex issue requiring careful analysis of labor regulations and case law from the High Courts of Justice. A single procedural mistake can turn a valid dismissal into an unfair or null one.
At Suárez de Vivero, we have a specialized Labor Law team that advises companies on proper dismissal management and legal risk prevention.
Contact our team for personalized advice and to ensure the legal security of your employment decisions.
