This paper aims to describe Spanish legislation on dismissal, as amended after the reforms that occurred between 2010 and 2012, in the middle of the economic crisis. The analysis, conducted from a legal perspective, focuses on the transition from a system based on the limitation of the entrepreneur’s power to terminate the employment contract, provided only for the reasons specified by the law, to a model of "free paid dismissal". The exclusion of the principle of causality, which can be regarded as a totem that guarantees the stability of the workplace and avoids abuses, has led to paradoxical consequences, made particularly evident by the economic crisis. These irrational consequences are the reason that led to the repeal of this rule. The legislator preferred to leave space for the free dismissal (ad nutum) only for the newly hired workers and limited to the first year of the contract of employment. .
Keywords: Spanish labour law, predictability of the costs, despido exprés, single contract.
Jel Code: K310