Spain HR Information

Updated on: 2025/03/11 04:48 (UTC)

Overview

The Statute of Workers (SW) provides the main source of Spanish employment law and, along with an extensive list of other employment and labor regulations, constitutes a rigid framework that greatly limits the employers’ and employees’ freedom in the regulation of their employment relationship.

Hiring

Employment Contracts

Employment contracts may be written or oral, but written contracts are required if the work is to be done over a specified period longer than four weeks or if required by another statute. Either party may ask that the contract be formalized in writing at any time during the course of employment. Contracts are presumed to be for an indefinite period.

Whether or not a written employment contract is drafted, employers must provide all employees with a written statement of the following details of their employment:

• name and address of the employer;
• professional classification;
• hours of work and schedule;
• commencement of employment and, if applicable, date of termination;
• remuneration and frequency of payment;
• holidays, and
• any applicable collective bargaining agreement.

There are statutory requirements that certain provisions of an employment agreement be in writing—e.g., trial period and minimum length of employment. In addition, some employment contracts must always be in writing, including:

• contracts covering senior executives,
• contracts covering part-time employees,
• contracts for employees working from home,
• contracts for employees who work abroad,
• all temporary contracts lasting more than four weeks, and
• internship contracts.

The SW defines “employee” as an individual who voluntarily renders services for remuneration under the direction of another individual or of a company that directly receives the benefit of such services. Spanish employment law classifies employment relationships as “ordinary” and “special.” Examples of special employment relationships are those involving senior executives, professional athletes and artists. Special employment relationships have their own regulations and the SW applies only when more specific regulations do not.

Self-employed workers also render services for remuneration, but their compensation is direct payment for services provided rather than wages or salary. Self-employed workers are not under the disciplinary direction of the recipient of the services and assume the risk and benefits of their businesses. Self-employed workers are regulated by the Statute for Self-Employed Workers rather than the SW.

Temporary employment agency workers are formally employed by the agency but render their professional services under the direction of a third party (the client). In this triangular relationship, the third party remunerates the temporary employment agency under a commercial contract and the temporary employment agency remunerates the employee under an employment contract, although there are some legal obligations for which both the temporary employment agency and the client are liable, such as occupational hazard prevention.

Other workers are said to be in “ordinary” employment relationships.

Spanish labor law allows the temporary suspension of work contracts based on economic, technical or other reasons related to organization or production. Before implementing a temporary suspension, employers are required to consult with the workers’ representatives and to obtain authorization from the Labor Authority.

Unilateral Changes in Employment Conditions: Employers may unilaterally impose substantial modifications in working conditions, but they must prove that the modifications are based on economic, technical, organizational or production needs. They must negotiate with workers’ legal representatives for a period not exceeding 15 days and give a detailed explanation of the reasons for the changes and how they will improve the company’s competitive position in the market.

Employees may challenge changes in working conditions before the Labor Courts only on the grounds of fraud, deceit, duress or legal abuse.

If working hours are reduced as a result of economic conditions, affected workers should be offered training to develop their versatility or increase their employability.

Trial period: Trial periods must be defined in writing prior to the beginning of employment. During the trial period, either party may unilaterally terminate the contract without having to justify the action. In this event, the employee is not entitled to severance pay or notice.

In the absence of specific provisions in the relevant collective agreement, the trial period cannot exceed six months for “qualified” (skilled) employees and two months for other employees. In any event, trial periods cannot exceed three months (except for qualified employees) in companies employing fewer than 25 workers.

The trial period is only enforceable when the employee has not provided similar services for the company before. Once it is over, the trial period is counted towards the employee’s seniority. Employees subject to a trial period have the same status as ordinary employees.

Retention covenants: This kind of agreement, by which the employee is not entitled to leave the company for a certain period, is only enforceable when the employee has received specific training at the employer’s expense to develop a project or carry out an activity within the company. Retention covenants cannot exceed two years. In case of breach of the covenant by the employee, the employer is entitled to damages, usually equivalent to the amount spent on the employee’s training (or a proportional part of it, depending on the time of the employee’s breach).

Intellectual property: The transfer to the company of intellectual property rights derived from works created in the context of an employment relationship is governed by the terms of the employment contract. In the absence of express provisions, intellectual property rights are assumed to have been exclusively assigned to the employer to the extent necessary to carry out the company’s business.

Royal Decree No. 3/2014, which took effect in 2014, provides benefits to companies that hire the long-term unemployed and encourages companies to use indefinite employment contracts.

Part-time employment: A worker whose contract specifies a number of hours less than those worked by full-time employees is considered a part-time employee. The following rules govern part-time employment:

• The employment contract must be in writing.
• The worker’s hours may be shorter each working day, or the work may be done continuously during a specified part of the week. Unless exceptions are spelled out in a collective agreement, the employee cannot be asked to work a longer day when a short workday is the norm.
• Part-time employees may work overtime, but the amount of overtime work is determined in proportion to the agreed working hours. Any overtime is counted toward the base of social security contributions and other benefits.
• Part-time workers have the same rights as full-time workers.
• Conversion of a full-time job to part-time or vice versa must be done with the worker’s voluntary consent and may never be imposed unilaterally by the employer. An employee who rejects such a conversion may not be dismissed or otherwise penalized.
• Collective agreements must establish measures to give part-time workers access to vocational training.

Temporary employment: The employment contract may be entered into for an indefinite period of time or for a specific duration. Under Royal Decree No. 32/2021, employees can only be hired on a temporary basis if the service rendered is also of a temporary nature, specifically:

• to attend to unexpected demand because of production overload or backlog (such contracts may not run for more than six months within a 12-month period); or
• to substitute for employees entitled to return to their positions following leave (such contracts must specify who is being replaced and the reason for the replacement).

Temporary workers acquire permanent employee status if (in a period of 24 months) they have been employed for more than 18 months, either continuously or otherwise, with the same company or group of companies, through two or more contracts due to production circumstances.

Training contracts: Employers can enter into two types of training contracts:

• work-linked training contracts, in which workers receive salaried employment in combination with their vocational training or university studies, can be agreed for no less than three months and no more than two years; and
• contracts to obtain professional experience appropriate to the level of studies, which must be formalized within three years of the end of the study. These contracts can be agreed for no less than six months and no more than one year.

Remote work: On July 10, 2021, Spain enacted a law that prohibits employers from discriminating against employees who work remotely. The law requires employers to provide support to remote workers and make reasonable adjustments that may be necessary to enable employees to perform their duties outside the office.

Restrictions on Hiring

Children under the age of 16 are not allowed to work, except for certain activities in the entertainment industry. Those under 18 may not work at night or in jobs that the Ministry of Labor and Social Security deems unhealthy, painful, harmful or dangerous.

Recordkeeping

Employers must keep records of employees’ overtime hours.

Background Checks

During a pre-employment background check, it is only permissible to inquire about an applicant’s training and professional skills. Background checks cannot be made by external service providers.

Noncompetition Agreements

Post-contractual noncompete agreements are allowed under Spanish labor law, provided that the following requirements are met:

• their duration may not exceed two years in the case of “technicians” and six months otherwise,
• employers must have a commercial or industrial interest in relation to their enforcement, and
• employees must receive adequate compensation (although what is understood to be “adequate” is not defined by statute or case law and so must be determined on a case-by-case basis).

The payment of this compensation can be made either while the contract is in force (by allocating a share of the employee’s salary to remunerate the post-contractual restriction) or at the termination of the employment contract (in installments or in a lump sum).

In the event the Labor Courts declare that the remuneration is not adequate, the agreement will not be enforceable. Labor Courts have stipulated that employers cannot unilaterally withdraw a noncompetition clause even if this is provided for in the employment contract.

Reference Citations

Employment Contracts: Royal Legislative Decree 1/1995 approving the revised text of the Statute of Workers, arts. 8, 14-16 (Spanish)

Restrictions on Hiring: Royal Legislative Decree 1/1995 approving the revised text of the Statute of Workers, art. 6 (Spanish)

Recordkeeping: Royal Legislative Decree 1/1995 approving the revised text of the Statute of Workers, arts. 12, 18 (Spanish)

Noncompetition Agreements: Royal Legislative Decree 1/1995 approving the revised text of the Statute of Workers, art. 21 (Spanish)

Immigration and Work Permits

In General

Before a non-Spanish national can be hired, the employer must ensure that no Spanish worker is readily available. The employer also must be registered with the social security authority and be up-to-date on its payments, guarantee the prospective employee continued employment and prove its own financial viability. The prospective employee must be in Spain legally, not have a criminal record and have the credentials and qualifications required for the position. The country amended immigration regulations, effective Aug. 15, 2022, to streamline procedures for improving participation of immigrant workers into its labor market.

Visas and Work Permits

Before a non-Spanish national can be hired, the employer must ensure that no Spanish worker is readily available: either the occupation must be listed in the National Occupation Shortage List or a certificate must be issued by the Regional Public Employment Service.

The employer must be registered with the social security authority and be up-to-date on its payments, guarantee the prospective employee continued employment and prove its own financial viability. The prospective employee must be in Spain legally, not have a criminal record and have the credentials and qualifications required for the position.

The employer must submit an application for a residence and work permit on the prospective employee’s behalf to the immigration office (Oficina de Extranjeros) at the nearest Subdelegación del Gobierno or prefecture or the Unidad de Grandes Empresas (Large Business Unit) of the Ministry of Labor and Immigration.

The employer must also provide:

• its national ID or tax ID number;
• documentation of its legal authority to represent the worker for whom application is being made;
• evidence of its exemption from the national labor market prohibition on hiring a foreign national for a job a Spanish national might be qualified and available for;
• the original employment contract and one copy;
• proof of its economic, material and human resources to manage the project for which the employee is being hired, and
• a copy of the worker’s passport or valid travel document and training or professional qualifications.

The initial work permit is valid for one year, may be restricted to a particular geographical area and activity and is conditional on the foreign national obtaining a visa, entering Spain and registering with the social security system.

Once the work permit is granted, the prospective employee must present his or her visa application at the relevant diplomatic mission or consulate within a month of being notified of the permit being granted with:

• a copy of the employment contract stamped by the Foreigners’ Office,
• a passport or travel document valid in Spain and with a minimum validity of four months,
• a criminal record certificate issued by the authorities in the applicant’s country of origin or countries of residence during the preceding five years proving that the applicant has performed no acts during that period considered a criminal offence under Spanish law and
• a certificate that the applicant does not suffer from any disease that could have a severe impact on public health according to International Health Regulations.

While the visa is being processed, the applicant may be required to appear in person to be interviewed.

A work visa application will be decided within one month of the submission of a complete application.

Post-Entry Requirements

Once the visa has been issued, the worker must enter Spain within the period stated on the visa (but no later than three months), and within three months of his or her entering Spain the employer must register the employee with the social security system. Within a month of being registered with social security, the employee must apply in person for a Foreigner’s Identity Number. Failure to register with social security may lead to the employee’s deportation.

The employee can request an extension of the residence and work permits within 60 calendar days of their expiration. Late requests for extension will be accepted up to 90 days following expiration but may subject the employee to a fine.

Reference Citations

Visas and Work Permits: Visa Law 14/2013 of Sept. 27 (Spanish)

Post-Entry Requirements: Visa Law 14/2013 of Sept. 27 (Spanish)

Nondiscrimination

In General

The Spanish Constitution and the Statute of Workers prohibit discrimination in recruitment and working conditions on the grounds of gender, marital status, race, physical or mental disability, religion or belief, sexual orientation, age, trade union membership, kinship with other employees, gender reassignment, pregnancy or maternity leave. In addition, mobility within the company’s professional ranks cannot be restricted except on the basis of the professional qualifications necessary to fulfill the requirements of a specific position.

Disability Discrimination

The Social Integration of the Disabled Act 1982 prohibits direct and indirect discrimination against individuals with disabilities and sets out measures for affirmative action. Employers must also take reasonable steps to make workplaces accessible to the disabled and to accommodate their employment needs.

Companies employing more than 50 employees must recruit 2 percent of their workforce from persons registered as disabled or comply with alternative measures:

• contract the supply of goods or services with a self-employed disabled worker or a special employment center (a public or private company with at least 70 percent disabled workers that has been registered with the relevant labor registry) or
• make donations to entities dedicated to promoting either disabled individuals’ integration into the labor market or paralympic sports.

Gender Discrimination

The Equality for Men and Women Act 2007 expressly states that discriminatory contracts and clauses (whether direct or indirect) based on gender or maternity are null and void. The act also requires that every company adopt measures to avoid discrimination between men and women.

The prohibition on gender-based discrimination applies to all aspects and stages of the employment relationship, including recruitment, selection, training, compensation and promotion. Collective agreements can provide for further measures to be adopted.

Pay Equity: Companies must adopt an equality plan that entails:

• specific pay equity goals,
• specific strategies and policies to achieve these goals, and
• annual pay audits.

Gender Pay Reporting: Covered employers must establish an action plan for correcting any inequalities identified in their pay audits. All companies, regardless of the number of workers, must develop and maintain a wage register organized by job category and gender. Workers’ representatives must be able to access the register. Employers need to justify disparities of more than 25 percent in pay between the genders.

EU Pay Transparency Directive: As a member state of the European Union, Spain has until June 2026 to transpose the minimum requirements of the EU Pay Transparency Directive into its national law or amend any current pay equity laws to conform with the directive, which aims to promote pay equity between men and women. The directive introduces requirements on gender pay gap reporting, salary history bans during the hiring process, and wage disclosure in job vacancy listings. The national law may go beyond the minimum requirements of the directive, but the law may not directly conflict with the directive requirements.

Reference Citations

Nondiscrimination: Royal Legislative Decree 1/1995 approving the revised text of the Statute of Workers, art. 17 (Spanish)

Disability Discrimination: Royal Decree 1/2013 of Nov. 29, General Law on Rights of Persons with Disabilities, art. 42 (Spanish)

Gender Discrimination: Equality of Men and Women Act, 2007, art. 85 (Spanish)

Employee Privacy

Employee Data

On May 25, 2018, the General Data Protection Regulation (GDPR) superseded the Data Protection Directive as the primary law governing data privacy in the EU. The GDPR establishes minimum requirements for the processing of employee data and allows EU member nations to introduce more restrictive local legislation. Stricter requirements can also be established in collective bargaining agreements or work contracts. For more information, see the In Focus: International Privacy Laws.

Spain’s Data Protection Act clarifies certain provisions of the GDPR. The rights granted to employees by the new law include the right to disconnect any digital devices outside of normal working time to ensure rest periods are respected and prevent employees from suffering ‘computer fatigue’. Employers also must develop specific policies on the use of digital devices and provide clear guidance on the scope of employees’ privacy.

Employee Monitoring and Surveillance

Under the GDPR, employers can monitor employees only if there is a lawful basis for doing so. Lawful bases can include preventing employee misconduct, deterring crime, and ensuring compliance with health and safety procedures. Employees must be given prior notice, and any data that is collected must be used and kept only to fulfill its original purpose.

Reference Citations

Employee Data: General Data Protection Regulation, 2016; Data Protection Act, 2018, (Spanish)

Employee Monitoring and Surveillance: General Data Protection Regulation, 2016

Compensation

Hours of Work

Maximum allowable working hours are established by collective agreements or by individual employment contracts, although the Statute of Workers sets an absolute limit of 40 hours per week on average in one year. The maximum workday is nine hours.

Workers are entitled to an uninterrupted rest period of at least 12 hours between shifts. A weekly rest period of a day and a half is required, generally including all day Sunday plus Saturday afternoon or Monday morning.

Employees required to work more than six uninterrupted hours are entitled to a minimum 15-minute break.

Employees under 18 years of age may work a maximum of eight hours per day and must be given two days’ rest per week and a 30-minute break if their working day exceeds 4 ¹ / ₂ continuous hours.

Exceptions to these rules may apply for employees in certain industries and other specified employment relationships (such as senior executives, security guards or hospitality workers).

Work performed between 10 p.m. and 6 a.m. is considered night work and qualifies the employee for premium pay, the amount of which is established by collective agreement. The premium must be paid to anyone whose shift includes three hours or more of night work. A free health assessment must be provided to workers before they begin working a night shift and at regular intervals thereafter. Night workers who experience health problems must be allowed to transfer to a daytime job.

All employers must record the hours employees have worked, including the time of entry and exit of each worker. The record must be kept for four years.

Employees can request that their work time be adjusted in order to recognize their right to work-life balance. However, such adjustments must be reasonable and proportionate to the needs of the employee and the organization.

Minimum Wage

From Jan. 1, 2024, Spain’s minimum wage is 1,134 euros per month. From Jan. 1, 2023, to Dec. 31, 2023, the monthly minimum wage was 1,080 euros.

Overtime

Employees are not legally required to work overtime unless this is stipulated in a collective agreement or individual employment contract. Overtime must be paid by the hour, applying a premium over the standard hourly rate or compensated with equal time off. The Statute of Workers sets a standard 80-hour yearly maximum amount of overtime per employee.

Overtime cannot be worked by minors, night workers (who work between 10 p.m. and 6 a.m.) or part-time workers.

Wage Payment

Employees must be paid on a monthly or more frequent basis. Payment must be in legal tender, check, or bank deposit. Late payments can be assessed interest at a 10 percent annual rate.

Mandatory Bonuses

Gross annual salary is divided into 12 monthly installments, and employees are entitled to two extra payments a year, one at Christmas and the other on the month agreed in the collective bargaining agreement or by agreement between the employer and the employees’ legal representatives (generally prior to the summer vacation period). The collective agreement or the individual employment contract might provide, however, that the two extra payments be made on a pro rata basis over 12 months.

Although there is no legal obligation, many employers provide noncash benefits to their employees in addition to salary, including private medical insurance, lunch vouchers, transportation allowances, contributions to pension plans or stock option schemes, life insurance, death-in-service benefits, mobile phones and cars or car allowances. Noncash benefits are most commonly granted to executives, although some companies grant them to all employees, either voluntarily or in compliance with the terms of a collective agreement. Tax and social security exemptions apply to many noncash benefits.

Reference Citations

Hours of Work: Royal Legislative Decree 2/2015 approving the consolidated text of the Statute of Workers, art. 34 (Spanish)

Minimum Wage: Cabinet of Ministers Press Release (Spanish)

Overtime: Royal Legislative Decree 1/1995 approving the revised text of the Statute of Workers, art. 35 (Spanish)

Wage Payment: Royal Legislative Decree 1/1995 approving the revised text of the Statute of Workers, arts. 29, 31 (Spanish)

Benefits

Vacation

Employees are entitled to a minimum of 30 calendar days of annual leave paid at their regular rate; this can be increased by collective agreements or by individual employment contracts. Leave entitlement is reduced proportionally for periods of employment less than a year. Unused leave does not generally carry forward to the next year, although there are exceptions to this rule (e.g., pregnancy or maternity leave). Payment in lieu of leave is not permitted except on termination of the employment contract.

When workers can take their annual leave entitlement is a matter for agreement between the employer and the employee. In case of disagreement between the parties, the dates will be decided by local labor authorities.

If an employee’s holiday period coincides with certain temporary disabilities—including pregnancy, childbirth or breast-feeding—the employee is entitled to take paid vacation at another time within the same year. If the temporary disability has another cause, the worker may take paid vacation at another time within 18 months.

Holidays

Employees are entitled to 14 public holidays per year. Eight holidays are observed countrywide:

• Jan. 1: New Year’s Day
• Good Friday
• May 1: International Workers’ Day
• Aug. 15: Feast of the Assumption
• Oct. 12: Spanish National Day
• Nov. 1: All Saints’ Day
• Dec. 6: Spanish Constitution Day
• Dec. 25: Christmas Day

In addition, each region decides on four additional holidays of its own and each local council on two.

The government may elect to observe holidays that fall on weekdays on the following Monday.

Maternity Leave

Pregnant employees are entitled to 16 weeks of maternity leave and two extra weeks per child in cases of multiple births. Of these 16 weeks, six must be taken by the mother immediately after the child’s birth; the rest can be taken before childbirth if the mother chooses to do so. During the remaining 10 weeks, both parents may take maternity leave simultaneously or successively, provided no more than 16 weeks’ leave is taken in total between the two parents.

The social security system pays the employee’s subsidy during maternity leave, which is equal to 100 percent of the employee’s social security contribution base.

Pregnant employees also have the right to paid leave for prenatal examinations and preparation for childbirth.

Upon return from leave, the employee is entitled to reinstatement to her previous position. If an employer refuses to reinstate an employee, the employee may file a claim with the Labor Courts demanding reinstatement to her former position or termination of employment with the severance payment established for unfair dismissals (33 days’ salary per year of service up to a maximum 24 monthly payments).

Pregnant workers and employees on parental leave are given special protection against dismissal. If a pregnant employee is dismissed her probationary period, the dismissal will be deemed invalid from the start date of the pregnancy until the date on which the suspension of the contract for maternity leave commences, unless the company can show that it had a legitimate, non-discriminatory reason to terminate the employee.

Employees may request the suspension of their contracts for up to 15 months in order to provide child care. In such cases, the employer must reserve the employees’ position until they return.

Paternity Leave

Fathers of newborns are entitled to 16 weeks of paid paternity leave. The first six weeks must be completed immediately after childbirth, while the remaining ten weeks can be taken anytime prior to the child’s first birthday.

Paternity leave can be extended by two weeks in the case of multiple birth.

The social security system pays the employee’s subsidy during paternity leave, which is equal to 100 percent of the employee’s social security contribution base.

Employees on parental leave are given special protection against dismissal.

Sick Leave

In the event of occupational illness or accident, the social security system pays the employee’s subsidy, except for the first day of absence. The subsidy is equal to 75 percent of the employee’s total monthly compensation subject to social security tax. The employee does not need to meet any conditions before becoming entitled to sick pay.

In cases of non work-related illness or injury, employees are not entitled to receive their salaries for the first three days of sick leave. Between days four and 20, employees are entitled to 60 percent of their monthly compensation subject to social security tax. Benefits from days four to 15 are paid by the employer, from days 16 to 20 by the social security system. From day 21, employees are entitled to benefits equal to 75 percent of monthly compensation subject to social security, which is paid by the social security system.

Many collective agreements provide benefits beyond these basic entitlements by requiring the employer to pay the difference between the social security allowance and the employee’s actual salary.

Other Leave

Adoption leave. Adoptive and foster parents are entitled to 16 weeks’ leave and two extra weeks for each additional child. If both parents work, they may take simultaneous or successive periods of leave.

Menstruation leave. Effective June 1, 2023, women workers are entitled to unpaid sick leave due to severe menstrual pain.

Paid leave. In the following circumstances, employees are entitled to receive their full salaries for the periods indicated:

• 15 calendar days in case of marriage;
• the time required to comply with a public obligation (e.g., voting or jury duties);
• two days in case of the birth of a child or the death, accident or illness of a close relative (four days if travel is required);
• one day for moving to a new residence and
• the time necessary to execute union duties and worker representation.

Workers with at least one year of seniority are entitled to 20 hours per year of training leave, linked to the activity of the company.

Unpaid child care leave. Employees are entitled to voluntary unpaid leave of up to three years to care for natural or adopted children. Leave can be taken in one continuous period or intermittently over a number of shorter periods totaling no more than three years.

If employees return to work after no more than a year (or 15 months if an employee has a “large family,” defined by law as three or more children), they are entitled to reinstatement in their previous positions. Otherwise, the employee is entitled to reinstatement at the same level but not necessarily in the same position.

While employees are not entitled to compensation, time during which unpaid leave is taken for child care must be considered by the employer in calculating seniority and the right to participate in training.

Other unpaid leave. The Statute of Workers also guarantees employees unpaid leave of up to two years to take care of a close family member (parent, child, sibling, grandparent or grandchild, aunt or uncle, first cousin or niece or nephew) in the event the family member is handicapped or is deemed by the health authorities to be unable to execute the most basic activities of daily living without help from a third person.

Employees with at least a year’s tenure are entitled to voluntary unpaid leave of between four months and five years. After the exercise of this right, no other voluntary unpaid leave may be taken for four years. Following unpaid leave, the employee is entitled to be reinstated in his or her previous professional category, but not necessarily in the same position. Time taken for unpaid voluntary leave is not considered in the calculation of seniority.

Pensions and Social Security

The Spanish social security system provides numerous benefits, such as workers’ compensation, medical care, hospitalization, retirement pensions, disability payments and unemployment compensation. In general, Spanish social security covers the following contingencies:

• loss of ability to work as a consequence of an employment-related accident, an occupational disease or maternity;
• loss of job;
• old age and
• family need (assistance for children under age 18 or disabled).

Spanish law requires all employed and self-employed Spanish and non-Spanish nationals who work in the Spanish territory to register with the social security system.

Spain has also signed social security (totalization) treaties with a number of countries, including the United States, which must be taken into account when calculating contribution liabilities.

Workers’ Compensation

Spanish social security covers loss of ability to work as a consequence of an employment-related accident or occupational disease.

Reference Citations

Vacation: Royal Legislative Decree 2/2015 approving the consolidated text of the Statute of Workers, art. 38 (Spanish)

Holidays: Royal Decree, 2001/1983 of July 28 (Spanish)

Maternity Leave: Royal Legislative Decree 2/2015 approving the consolidated text of the Statute of Workers, art. 48(4) (Spanish); Royal Legislative Decree 1/1995, art. 56

Paternity Leave: Royal Legislative Decree 2/2015 approving the consolidated text of the Statute of Workers, art. 48(7) (Spanish); Spain Budgetary Plan, 2018 (Spanish); Royal Legislative Decree 6/2019 on urgent measures to guarantee equal treatment and opportunities for women and men in employment

Sick Leave: General Social Security Act, 2015, arts. 216 (Spanish)

Other Leave: Royal Legislative Decree 2/2015 approving the consolidated text of the Statute of Workers, art. 37 (Spanish)

Pensions and Social Security: General Social Security Act, 2015 (Spanish)

Workers’ Compensation: General Social Security Act, 2015 (Spanish)

Labor Relations

In General

Under Spanish employment law, all workers have the right to freely join trade unions, which have extensive powers to exercise their rights.

At the company level, employees’ representation is organized in the form of staff delegates or a works council. Employees’ representatives have:

• certain information, consultation and surveillance rights concerning the company’s or workplace’s compliance with employment, labor and occupational hazard prevention regulations;
• the right to receive certain economic or financial information from the company and
• the right to be consulted about and to negotiate certain employment measures—e.g., collective agreements, collective redundancies and relocations.

While workplace disputes are most often resolved through judicial means, the right to strike is protected by the Statute of Workers.

In the event of a transfer of ownership, employees of the acquired company that continue to work for the acquiring company are entitled to all the benefits and rights they enjoyed prior to the transfer.

Right to Organize

Under Spanish employment law, all workers—with the exception of certain groups belonging to the public administration, such as the army—have the right to freely join trade unions, which have extensive powers to exercise their rights.

The principal national union confederations in Spain are the Workers’ Commissions (Confederación Sindical de Comisiones Obrera or CCOO) and the General Workers Union (Union General de Trabajadores or UGT), both of which have considerable political power. There are other labor organizations at the regional level and in the public sector. Trade unions collectively represent workers’ interests at the regional level and by industry. There are also various employers’ associations, the most important being the Confederation of Employers and Industries (Confederación Espanola de Organizaciones Empresariales or CEOE).

At the company level, employees’ representation is organized in the form of staff delegates or a works council. Staff delegates are the workers’ representatives if the company has fewer than 50 employees; works councils are elected when the company’s workforce decides to have representation and there are 50 or more employees in the company.

Works Councils

Spanish companies must establish a European Works Council or similar body if:

• the company employs more than 1,000 workers in all EU member states, of whom 150 are located in one specific member state and another 150 employed in a different member state, and
• at least 100 employees or their representatives belonging to two workplaces or companies located in different member states request such representation.

The number of members for a works council is:

• five if the employer has 50 to 100 employees,
• nine if the employer has 101 to 250 employees,
• 13 if the employer has 251 to 500 employees,
• 17 if the employer has 501 to 750 employees,
• 21 if the employer has 751 to 1,000 employees and
• two additional members per each 1,000 employees (or fraction thereof) up to a 75-member limit if the employer has more than 1,000 employees.

Employees’ representatives have certain information, consultation and surveillance rights concerning the company’s or workplace’s compliance with employment, labor and occupational hazard prevention regulations. They also have the right to receive certain economic or financial information from the company.

Employees’ representatives are also entitled to be consulted about and to negotiate certain employment measures—e.g., collective agreements, collective redundancies and relocations.

Dispute Resolution

Workplace disputes are most often resolved through judicial means. Preliminary mediation of a dispute is required and conducted out of court by an administrative service. If the dispute remains unresolved after conciliation, the judge will proceed to hear the case in the Labor Court.

Arbitration is mandatory for widespread strikes.

Strikes and Lockouts

The right to strike is protected in the SW. When a strike is called, the strike declaration agreement must be given in writing to the employer and to the labor authorities at least five days in advance of the action, 10 days for essential services. The notice must contain the objectives of the strike, the efforts made to resolve differences, the date of commencement of the strike and the composition of the strike committee. Certain limits can be imposed on strikes if they affect essential public services.

Successorship Clauses

In the event of a transfer of ownership, employees of the acquired company (predecessor employer) that continue to work for the acquiring company (successor employer) are entitled to all the benefits and rights they enjoyed under the predecessor.

Employers involved in a merger or acquisition must provide representatives of affected employees with the following information in writing:

• proposed date of the transfer of ownership;
• grounds for the transfer;
• legal, financial and social consequences of the transfer for the employees and
• proposed measures to be taken on the employees’ behalf.

This information must be provided in advance of the transfer. Although there is no legal deadline to comply with this obligation, market practice is to provide the information at least 15 days prior to the transfer’s effective date. In the event of mergers and spin-offs, the information must be provided no later than the date notice calling the general meeting of the company to approve the relevant resolutions is issued.

Failure to comply with the obligation to inform and consult with employee representatives does not affect the enforceability of the transfer of ownership, but it is considered a serious infringement of labor law and can result in financial penalties.

Reference Citations

Right to Organize: Royal Legislative Decree 1/1995 approving the revised text of the Statute of Workers, art. 4 (Spanish)

Works Councils: Royal Legislative Decree 1/1995 approving the revised text of the Statute of Workers, arts. 62-66 (Spanish)

Dispute Resolution: Law 36/2011 of Oct. 10 Regulating Social Jurisdiction, art. 156-157

Strikes and Lockouts: Royal Decree, 17/1977 of March 4, Industrial Relations, arts. 1-6

Successorship Clauses: Royal Legislative Decree 1/1995 approving the revised text of the Statute of Workers, art. 44 (Spanish)

Safety, Health and Security

In General

Regulations on health, safety and security in the workplace are extensive and very detailed, and compliance requires that multiple measures be taken. Employers must, for example, conduct occupational hazards evaluations, prepare hazards prevention plans and provide employees with training and information on the prevention of occupational hazards.

Workplace Safety and Health

Regulations on health, safety and security in the workplace are extensive and very detailed, and compliance requires that multiple measures be taken. In particular, companies must:

• carry out and update an occupational hazards evaluation,
• prepare and update an occupational hazards prevention plan,
• prepare an emergency plan,
• provide employees with training and information on the prevention of occupational hazards,
• organize an occupational hazards prevention service,
• set up a health and safety committee,
• take care of employees’ health,
• coordinate prevention activities on the company’s premises and
• implement a program to prevent occupational hazards in all the company’s sectors and divisions.

In the event of a breach of health and safety duties, employers may be subject to criminal, civil and administrative sanctions, depending on the seriousness of the breach.

Drug and Alcohol Use

Smoking in all workplaces in Spain was banned by law in 2006.

Reference Citations

Workplace Safety and Health: Royal Legislative Decree 1/1995 approving the revised text of the Statute of Workers, art. 19 (Spanish)

Drug and Alcohol Use: Law 28/2005 of Dec. 26 on Health Measures Against Smoking (Spanish)

Termination

Termination by Employer

Termination of an employment agreement by unilateral decision of the employer must be justified or the employer can be required to reinstate the employee or pay severance pay and damages.

Justified dismissals. There are two types of justified dismissals: disciplinary and objective.

• Disciplinary dismissals. As a general matter, an employee’s breach must be both serious and willful to justify a disciplinary dismissal.

Causes. In addition to whatever terms regarding discipline and dismissal might be included in the collective agreement, the law expressly provides that the following employee behavior constitutes cause for disciplinary dismissal:

repeated and unjustified absences or delays or lack of productivity at work;

disobedience or lack of discipline at work;

verbal or physical acts of aggression against the employer, other employees of the company or their families;

breach of contractual good faith, disloyalty or fraud in performance of work;

intentional and continuous unsatisfactory work performance and

recurring drunkenness or drug addiction negatively affecting work performance.

Written notice. The employer must notify the employee of a disciplinary dismissal in writing, stating the cause(s) and the effective date of the dismissal.

Dismissal review. A dismissed employee has 20 days from the effective date of the dismissal to file a complaint with a Labor Court requesting review. Before a request for review can be filed, the employee must try to settle the matter through labor conciliation.

When asked to review a disciplinary dismissal, the Labor Court must determine into which of three categories the dismissal falls:

Fair (the cause of the dismissal was adequately proven). The employer is not required to pay any severance compensation but must pay a final settlement consisting of any deferred salary or additional payments and accrued holiday pay.

Unfair (there is inadequate proof of the cause of dismissal or the cause does not justify dismissal). The employer has five days from receiving notice of the Labor Court’s decision to either reinstate the employee or pay severance compensation equal to 33 days’ salary for each consecutive year of employment up to a maximum of 24 months.

Null and void (the dismissal was discriminatory or was in violation of the employee’s fundamental rights). The employer must immediately reinstate the employee and pay accrued salary.

• Objective dismissals. The following are causes for objective dismissals:

employee’s incompetence;

employee’s failure to adapt to reasonable technological changes needed for the job to be performed;

the need to eliminate a position due to financial, technical, organizational or production causes, but affecting a number of employees below the threshold required to constitute a collective dismissal and

intermittent absences exceeding 20 percent of the working days in any continuous two-month period or 25 percent in any four-month period within one year.

Notice period. The employer must provide the employee with written notice of objective dismissal (including the effective date and the cause) 15 days in advance, although pay in lieu of notice is allowed. There is no requirement to give notice if the employee is dismissed on disciplinary grounds.

Severance and other entitlements. Employees unfairly terminated are entitled to the following monetary awards:

severance pay calculated as 20 days’ salary for each continuous year of employment up to a maximum of one year’s salary and

six hours of paid leave per week during the advance notice period in order to find a new job.

Employee’s appeal rights. The employee may appeal the dismissal to the Labor Courts in the same manner as a disciplinary dismissal.

Unfair dismissal. In the event the Labor Court determines a dismissal to be unfair, the employee is entitled to severance pay calculated as 33 days’ salary for each year of employment up to a maximum of 24 months’ salary.

Null dismissal. If a Labor Court determines an objective dismissal to be invalid or null, the law governing disciplinary dismissals is applicable.

Employees can be terminated once they reach the legal retirement age provided the dismissal conforms to employment policy objectives in the collective bargaining agreement, such as improving the quality of work and transforming temporary contracts into permanent contracts.

Whistleblowing. Private-sector employers with 50 workers or more must install and operate a whistleblowing program for individuals to report work-related infractions and regulatory infringements. Spain’s Whistleblower Law transposed the EU Whistleblowing Directive into national law, which goes into effect on Mar. 13, 2023.

Termination by Employee

Employees have the right to terminate their employment relationship at any time—unless a valid retention clause has been signed—but are required to give their employers prior notice. The law does not provide an exact period of notice, which is usually established by the collective agreement. In the absence of a collective agreement, courts have ruled that notice must be adequate or reasonable or adjusted to the customs of the sector of activity.

The employer might be entitled to damages when no advance notice of termination is given by the employee and such termination is unjustified, although the law does not specify the amount.

Plant Closings and Mass Layoffs

Legitimate grounds for layoffs may be financial, technical, organizational or production-related. To qualify as a collective dismissal, employers must lay off within a 90-day period:

• 10 employees if total employment is under 100,
• 10 percent of employees if total employment is from 100 to 299 or
• 30 employees if total employment is over 300.

A company may request the Labor Authorities’ permission to conduct a collective dismissal if it would help overcome a negative financial situation or help guarantee the company’s future viability. The employer will be required to consult with workers’ representatives on the grounds for the collective dismissal and possible ways to reduce or limit its effects.

Companies that include workers older than 50 in a collective dismissal are required to make a contribution to the government.

Payment on Termination

The statutory minimum severance pay is 20 days’ salary for each continuous year of employment up to a maximum of one year’s salary, although it is quite common for companies to offer higher severance payments to increase the chances of getting an agreement with workers’ representatives.

In cases of unfair dismissal, the employer may choose between reinstatement of the worker or payment of compensation equivalent to 33 days’ pay per year of service up to 24 months’ wages.

Unemployment Insurance

To qualify for unemployment benefits, an employee must have contributed to the unemployment contingency fund at least 360 days in the previous six years and be registered with the employment authorities as available for work.

The unemployment insurance benefit is paid for one-third of the period the unemployed worker contributed with a minimum four months and a maximum 24 months of benefits. Benefits are based on the last 180 days’ salary.

Reference Citations

Termination by Employer: Royal Legislative Decree 1/1995 approving the revised text of the Statute of Workers, art. 52-56 (Spanish)

Termination by Employee: Royal Legislative Decree 1/1995 approving the revised text of the Statute of Workers, art. 50 (Spanish)

Plant Closings and Mass Layoffs: Royal Legislative Decree 1/1995 approving the revised text of the Statute of Workers, art. 51 (Spanish)

Payment on Termination: Royal Legislative Decree 1/1995 approving the revised text of the Statute of Workers, arts. 53, 56 (Spanish)

Personal Taxes

Residency Requirements

An individual is regarded as being domiciled in Spain for tax purposes if:

• the individual has stayed in Spain at least 183 days during the calendar year,
• the main center of the individual’s interests for economic or business purposes is in Spain or
• the individual’s family (nonseparated spouse and/or minor children) lives in Spain.

Taxable Income

Residents are taxed on their worldwide income, nonresidents only on income earned in Spain.

Taxable income includes salaries, income from professional services and business income. The cash value of fringe benefits is generally taxable.

Tax Rates

The income tax rate for residents is progressive and ranges from 19 percent to 47 percent depending on annual income, roughly half the tax levied by the federal government, the other half by the regional government. Regions are allowed to set their own tax rates, so there is some variation in tax liability by jurisdiction.

Nonresidents are subject to a flat 24 percent withholding rate, 19 percent if the individual is a resident of a European Union or European Economic Area member state.

The inbound expatriate program is a simplified system for inbound expatriates who become tax resident in Spain as a result of their assignment. The program is elective, not required, and available to expatriate employees during the year they change their residence and for the next five tax periods.

Reference Citations

Residency Requirements: Personal Income Tax Law, 2006, art. 8 (Spanish)

Taxable Income: Personal Income Tax Law, 2006 (Spanish)

References

In Spanish.

Law and Regulation

Royal Decree 1/2013 of Nov. 29, General Law on Rights of Persons with Disabilities

Royal Legislative Decree 1/1995 approving the revised text of the Statute of Workers

Visa Law 14/2013 of Sept. 27