Voluntary Retirement from a Private Company: Legal Guide and Procedure 2026

If you came to this post looking for information on “voluntary retirement from a company,” you may have taken a wrong turn. Or maybe not.

In the Spanish workplace context, the term “voluntary resignation” refers to something completely different from corporate volunteering: it is the voluntary termination of an employment contract by the employee—in other words, what is colloquially called “quitting” or “leaving the company on one’s own initiative.”

In this post, we’ll clarify exactly what it is, what the procedure entails, what rights and implications it involves, and how it differs from corporate volunteering—for anyone who came here looking for information on corporate volunteer programs.

What Is Voluntary Resignation?

Legal Definition

Voluntary resignation—or voluntary termination—is the termination of an employment contract by the employee’s unilateral decision, without any cause attributable to the employer. It is the opposite of dismissal: it is not the company that decides to let the employee go, but rather the employee who decides to leave.

It is regulated by Article 49 of the Workers’ Statute, specifically subsection 1.d), which lists “the employee’s resignation” as one of the grounds for termination of the contract.

Not to be confused with corporate volunteering

It is important to clarify this distinction because a Google search for “voluntary resignation” yields mixed results that can lead to confusion. Corporate volunteering is a social initiative organized by a company to enable its employees to participate in impactful causes. Voluntary resignation is an employee’s decision to terminate their employment relationship.

These are completely separate concepts. If you’re looking for information on corporate volunteer programs, visit: Complete Guide to Corporate Volunteering 2026.

Types of Voluntary Resignation

Within the category of voluntary resignation, there are several possible scenarios: pure voluntary resignation (the employee resigns for no reason other than their own decision), voluntary resignation due to employer misconduct (the employee leaves because the company has seriously violated their labor rights, which may entitle them to compensation), and mutual termination agreement (the employee and the company agree to terminate the employment on mutually agreed terms).

Legal Framework in Spain

Employee Rights Upon Voluntary Resignation

An employee who voluntarily resigns is entitled to: receive the corresponding severance pay (wages for days worked in the last month, a proportional share of any outstanding bonus payments, and unused vacation days), continue to receive wages through their last day of work, and obtain the relevant employment documentation (employer’s certificate, updated employment history).

Employer Obligations

The employer is obligated to honor the agreed-upon notice period (or that established in the collective bargaining agreement), issue the correct severance payment upon termination of the contract, not to prevent the employee’s voluntary resignation (there is no legal way to retain someone who wishes to leave), and to provide the required documentation so that the employee can qualify for unemployment benefits if they have made sufficient contributions.

Formal Procedure

The employee must communicate their decision in writing, giving the notice period specified in the collective bargaining agreement or the contract (typically 15 days for non-managerial employees, 1 month for managerial positions). Written notice is important: it protects the employee from misinterpretations and ensures that the company formally receives the notice.

Severance Pay for Voluntary Resignation

General rule: no severance pay

In a standard voluntary resignation, the employee is not entitled to severance pay (the well-known “20 days per year worked” applicable to wrongful termination). This is because the termination is at the employee’s own volition, not due to a unilateral decision by the company.

Exception: Voluntary Resignation Due to Employer Breach

If the employee is “forced” to leave because the company has seriously breached its obligations (non-payment of wages, workplace harassment, substantial modification of working conditions without agreement), they may file a claim for voluntary resignation with a labor court and request that it be declared an “unjustified termination” entitling them to severance pay. This is technically referred to as “termination of the contract at the employee’s request due to a cause attributable to the employer” (Art. 50 ET).

Factors Affecting Severance Pay

The amount of the severance pay depends on: the employee’s daily wage, the number of days worked in the last month, unused vacation days, outstanding bonus payments, and any other agreed-upon compensation (incentives, outstanding per diems, etc.).

Step-by-Step Procedure

If you have decided to voluntarily resign from your company:

1. Check your collective bargaining agreement or employment contract to determine the required notice period

2. Draft a written letter of voluntary resignation stating the effective date

3. Submit it to HR and request a receipt of acknowledgment, or send it via certified fax if there is tension with the company

4. Work during the notice period (failing to do so may have consequences)

5. Review your severance package before signing it—you have the right to have a union representative or labor attorney review it

6. Sign the severance agreement with the notation “not in agreement” if there are discrepancies, to reserve your right to file a claim

Taxes and the IRS

Tax Treatment of the Severance Payment

The severance payment for voluntary resignation (outstanding wages and unused vacation time) is taxed as employment income for personal income tax purposes, just like regular wages. It does not carry any special tax benefits, unlike severance pay for termination, which is tax-exempt up to certain limits.

Can I collect unemployment benefits if I leave voluntarily?

Generally, no. Unemployment benefits require that the termination of the contract be involuntary (dismissal, expiration of a temporary contract, etc.). If you have voluntarily left without just cause, you are not entitled to contributory unemployment benefits. This is one of the most important consequences to consider before taking this step.

Frequently Asked Questions

What is voluntary resignation in the private sector?

It is the termination of the employment contract at the employee’s own initiative (not the employer’s). It entitles the employee to a severance payment but not to severance pay, unless there is a cause attributable to the company. It has no relation to corporate volunteering.

Am I entitled to severance pay if I leave voluntarily?

No, not in the case of standard voluntary resignation. You are only entitled to severance pay if the voluntary resignation is due to serious breaches by the employer (Art. 50 of the Labor Code), in which case you can file a lawsuit in labor court to have it declared an unfair dismissal and receive the corresponding severance pay.