Introduction to Spanish Employment Law
Spain’s employment law (Derecho Laboral) is governed by the Workers’ Statute (Estatuto de los Trabajadores), which outlines the rights and duties of both employees and employers.
✅ Whether you’re a foreign business hiring staff in Spain or an expat working under contract, understanding Spanish labor law is essential for legal compliance and workplace fairness.
📄 Types of Employment Contracts in Spain
Spanish law recognizes several types of contracts:
-
📆 Indefinite contracts (Contrato indefinido) – Permanent employment
-
📉 Temporary contracts (Contrato temporal) – Fixed term for a project or replacement
-
🕐 Part-time contracts – Reduced hours with proportional rights
-
💻 Internship or trainee contracts – For students and recent graduates
-
🌍 Remote work agreements – Must comply with Spain’s Telework Law
✍️ All contracts must be in writing, and include salary, work hours, duration, job description, and applicable collective agreement.
🛡️ Employee Rights in Spain
Employees in Spain benefit from strong legal protections:
-
🏖️ Minimum 30 calendar days of paid vacation
-
🏥 Social security coverage for healthcare, unemployment, and pensions
-
🤒 Sick leave and maternity/paternity benefits
-
📅 Maximum 40-hour workweek
-
📢 Freedom of association and union membership
-
📈 Protection against discrimination and wrongful dismissal
👩⚖️ Most industries are covered by collective bargaining agreements (convenios colectivos) that provide enhanced conditions.
💼 Employer Obligations
Employers in Spain must:
-
📑 Register with Spanish Social Security (Seguridad Social)
-
💸 Pay contributions for each employee (typically 30–35% of salary)
-
📆 Track hours and breaks (obligatory time record system)
-
📋 Implement health & safety policies under PRL (Prevención de Riesgos Laborales)
-
💬 Communicate terminations in writing and provide severance where applicable
⚠️ Non-compliance can lead to heavy fines or legal disputes.
❌ Termination & Dismissal Rules
Spanish law distinguishes between:
-
✅ Fair dismissal (despido procedente) – Valid cause (e.g., poor performance, misconduct)
-
❌ Unfair dismissal (despido improcedente) – Without cause or improper procedure
-
🚫 Null dismissal (despido nulo) – Violates fundamental rights (e.g., discrimination, pregnancy)
📌 Severance pay depends on the type of dismissal and contract length.
📃 Employers must issue a finiquito (final settlement) and certificate of employment upon termination.
🧑💼 Foreign Workers and Work Permits
Non-EU nationals must have a valid residence and work permit. For employers:
-
🛂 Ensure the worker has authorization before signing a contract
-
📃 Comply with notification duties to immigration and labor authorities
-
🧮 Withhold and pay income tax (IRPF) and social security contributions
🌍 Spain supports intra-company transfers, highly qualified professionals, and digital nomads under specific visa regimes.
🔍 Real-World Scenario
Case: A UK tech startup opened a Barcelona branch and hired four engineers. Borderless Lawyers drafted compliant employment contracts, enrolled the team in Spanish Social Security, and implemented a remote work policy to meet new telework laws.
🛠️ How We Can Help
At Borderless Lawyers, we assist with:
-
✍️ Drafting compliant employment contracts
-
💬 Dismissal letters and dispute resolution
-
📑 Social security registrations and filings
-
👩⚖️ Representation before labor courts
-
📊 HR policy audits and collective agreement analysis
🚀 Start or Manage Employment Legally in Spain
Whether you’re an employer expanding into Spain or a worker negotiating your rights, our legal experts ensure compliance, clarity, and protection under Spanish labor law.