Employing staff in Spain requires compliance with a detailed and employee-protective legal framework. Whether you’re a startup or expanding your foreign business, understanding employment law in Spain is essential to avoid disputes, fines, or reputational risks.
This guide covers the legal essentials for employers operating in Spain.
🏛️ Legal Framework
The core of Spanish employment law is found in:
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Estatuto de los Trabajadores (Workers’ Statute)
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Collective Bargaining Agreements (CBAs or convenios colectivos)
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Relevant EU regulations
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Sector-specific or regional labor norms
Spanish labor law is pro-employee, with strong job protections and social rights.
đź“„ Hiring & Employment Contracts
Contract Types:
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Indefinite contracts (Contrato indefinido): Standard open-ended employment
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Fixed-term contracts (Contrato temporal): Allowed only under specific, legally justified circumstances
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Internship and training contracts: For young workers or recent graduates
All contracts should be:
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In writing
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Include job title, duties, salary, working hours, duration (if applicable), and probation period
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Registered with Social Security and the Public Employment Service (SEPE)
đź’¶ Salaries, Hours & Benefits
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Minimum wage (SMI): Updated annually (gross monthly)
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Workweek: Standard 40 hours; overtime is regulated
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Paid leave: 30 calendar days per year
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Public holidays: 14 days per year
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Sick leave and maternity/paternity leave: Covered by social security
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Termination compensation: Ranges from 12 to 33 days per year worked, depending on contract and reason for dismissal
🧾 Social Security & Payroll
Employers must:
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Register the company and employees with TesorerĂa General de la Seguridad Social (TGSS)
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Contribute approximately 30%–35% of gross salary to social security
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Submit monthly payroll declarations and tax withholdings
⚖️ Employee Rights and Protections
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Protection from unjust dismissal
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Right to collective bargaining
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Data protection under GDPR
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Anti-discrimination and workplace equality
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Right to strike and unionize
⚠️ Common Employer Mistakes
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Using temporary contracts improperly
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Misclassifying independent contractors
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Ignoring applicable CBAs
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Not providing written contracts or payslips
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Failing to register or underreporting salaries
🤝 How Borderless Lawyers Can Help
We help companies in Spain:
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Draft compliant employment contracts
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Set up payroll and social security systems
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Interpret and apply CBAs
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Handle employee disputes and terminations
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Conduct HR audits for legal risk