Dismissal for Racist Insults at Work: When It Is Justified and How to Act

Zero tolerance towards racial discrimination is not only an ethical principle but also a legal obligation. Racist insults directed at co-workers are considered very serious offenses that may justify termination of the contract through fair disciplinary dismissal, even if the victim downplays the incident or there are no external witnesses.

 

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What does the law say about dismissal for racist insults at work?

Article 54 of the Spanish Workers’ Statute states that verbal offenses against colleagues or superiors constitute serious and culpable breaches of contract. In particular:

• Racist or discriminatory insults are considered a particularly serious form of verbal offense.
• Harassment based on racial or ethnic origin may constitute a very serious offense when the behavior is repeated or particularly offensive.

The key for dismissal to be justified is that the behavior is serious and culpable, a criterion that courts uphold in most cases of racial discrimination.

Employer obligations

The employer not only has the authority to sanction such behavior but also the duty to protect all employees:

• Ensure a work environment free from harassment and discrimination.
• Take immediate measures in response to racist insults to avoid very serious administrative violations, according to the Law on Offenses and Penalties in the Social Order (LISOS).
• Document and act on incidents, following the guidelines of the Labor Inspectorate and the technical criteria for the prevention of workplace harassment.

Failure to act against such conduct may result in liability for the company.

What does case law say about the seriousness of insults?

Spanish courts have repeatedly held that:

• The seriousness of racist insults is not diminished because the victim minimizes the incident.
• It also does not depend on whether the insults were heard by clients or third parties.
• The gradualist theory applies, but racial insults are considered intrinsically serious, justifying the maximum sanction: fair dismissal.

Recent examples

• High Court of Justice of the Basque Country (April 8, 2025): confirmed the disciplinary dismissal of an employee for racist insults towards a co-worker, even though the latter downplayed the facts and there were no external witnesses.
• Rulings from other autonomous communities (Andalusia, Castilla-La Mancha, Catalonia) support the justification of dismissal for derogatory expressions and assaults in the workplace.

Formal requirements for dismissal to be valid

For a disciplinary dismissal due to racist insults to be legally sound, the company must comply with the following steps:

1. Written notification: deliver the dismissal letter to the employee.
2. Clear description of the facts: specify what was said, to whom, when, and in what context.
3. Indication of the effective date of contract termination.

Meeting these requirements prevents legal challenges and strengthens the company’s position against potential claims.

✅ Protect your company against discriminatory behavior

Racist insults in the workplace constitute a serious breach that undermines the dignity of workers and contractual good faith. Their seriousness fully justifies fair disciplinary dismissal. In addition, the company has a legal duty to act to protect its workforce and prevent a toxic work environment, avoiding administrative sanctions.

If you want to protect the integrity of your workforce, learn more about our labor compliance and workplace conflict management services. If you want to know how to manage other types of dismissals, check out this other blog post here.