Ibiza and Formentera companies accused of fraudulent dismissals

The labor union Comisiones Obreras (CCOO) has reported a systematic pattern of abusive practices by companies in Ibiza and Formentera. The union alleges that businesses are using “sanction engineering” to avoid paying legal severance during the end-of-summer seasonal transition.

According to CCOO, companies are issuing a high volume of disciplinary files—averaging two to three per day—to dismantle staff without providing compensation. This strategy involves issuing rapid-fire sanctions for minor or disproportionate reasons, such as slight delays or unverified customer complaints, to facilitate “express disciplinary dismissals.” While the practice is spreading to other sectors, the impact is reportedly most severe within the hospitality industry.