Employers in Spain can terminate an employment contract, but they must follow the legal requirements and provide valid reasons for the termination. There are three main types of dismissal: objective, disciplinary, and collective. Objective dismissal may be due to economic, technical, organizational, or production-related reasons. Disciplinary dismissal is based on the employee's misconduct. Collective dismissal occurs when a company lays off a certain number of employees due to economic or other valid reasons. In each case, the employer must respect the notice periods stipulated in the worker's contract or the relevant collective agreement and may be required to provide severance payments depending on the circumstances.