Spain
Knowledge Base
Frequently asked question, important data and information on EOR.
General information
$1080 EUR
Labor Law
Laws that regulate Labor Relationship
• The Spanish Constitution dated December 17, 1978
• Various Royal Decrees
• Applicable company collective agreements
• Employment contracts
• Habits and common usage
• General principles of law
Onboarding guide
Requirements for a labor contract
• Identity of both parties: address of the company, place where the employee is supposed to work.
• Start date of employment.
• Job category or occupational group, and the number of working days.
• Starting base salary, when and how the payment is made (monthly, weekly, etc.)
• Vacation.
• Period of notice to be given by both parties to terminate the contract.
• The collective bargaining agreement applicable to the employment relationship, which establishes the specific characteristics that make it possible to identify it.
Pre-hire Medical exam
No
Types of contracts
• Indefinite-term contract: No term is established for the development of the labor activity. It may be full-time, part-time or for the provision of discontinuous fixed services.
• Temporary employment contract: A person occupies a job for a period of time and for a specific activity. The company must justify the cause of the temporary contract, since the unjustified use of temporary hiring converts it into an indefinite-term contract.
• Contract for training and apprenticeship: job training for young people between 16 and 25 years of age, without professional qualification. The age limit does not apply to disabled persons. It will have a minimum duration of 1 year and a maximum of 3 years.
• Internship contract: The purpose of the internship contract is for the worker to acquire professional practice according to the studies carried out. Minimum duration of 6 months and maximum of 2 years.
Probation Period
Probation period is not mandatory, it must be written in the contract.
• 2 months
• 6 months for internships
• In companies with less than 25 workers, may not exceed 3 months for workers who are not qualified technicians
Are offer letters mandatory in the country?
No, offer letters are not mandatory for labor contracts in Spain. However, it is a good practice to provide an offer letter to the employee as it outlines the terms and conditions of the employment.
Are digital signatures in labor contracts valid?
Permitted.
Mandatory onboarding documents
• DNI or NIE and Passport
• Spanish Bank Account Detail: document attesting the ownership
• Social security certificate
• Resume/CV
Statutory benefits
Annual Bonus
Yes, 13th and 14th are generally paid in the summer and Christmas. But also could be paid along the year if the company has the policy to paid the net anual salary in 12 payments.
Additional bonus
In Spain, bonuses are defined as salary supplements in Article 26.3 of the Workers’ Statute (‘Estatuto de los Trabajadores’). This remuneration scheme is either based on company performance or on the employee meeting certain objectives.
Leaves (medical, maternity, paternity, etc.)
• Sickness Leave and disability Leave: When an employee is sick, the company is under no obligation to compensate for the first to the third day. A sick leave longer than three days is picked up by the National Institute of Social Security which pays 60% of the employee’s salary for the first 20 days. It then changes to 75% for a maximum leave of 18 months.
• Maternity leave: is the standard maternity leave in Spain that gives a woman 16 weeks leave. This extends by 13 weeks if the baby is premature and must be in the hospital for 7 days.
• Paternity leave: Fathers receive 5 weeks of paid leave
Annual Leave (days per year)
A full-time worker may take 22 working days (30 calendar days) of paid holiday time per year. One leave must be two weeks long, the rest can be divided up as needed.
How do vacation days expire?
The days not taken into the year, could be negotiated with the company to enjoy them the next year, with a date agreed to do so.
Official Holidays
NATIONAL
• 1 Jan New Year’s Day
• 2 Jan New Year’s Day (in lieu)
• 6 Jan Epiphany
• 7 Apr Good Friday
• 1 May Labor Day
• 15 Aug Assumption Day
• 12 Oct Hispanic Day
• 1 Nov All Saints’ Day
• 6 Dec Constitution Day
• 8 Dec Immaculate Conception Day
• 25 Dec Christmas Day
Working on holidays and Sundays
• Sundays: Employees who work on Sundays are entitled to a minimum of 75% extra pay. • Public holidays: Employees who work on public holidays are entitled to a minimum of 125% extra pay.
Number of Working hours
It cannot exceed 40 hours per week. The typical Spanish working day is from 8:30 a.m. to 9:00 a.m. until 2:00 p.m., with working hours resuming from 4:00-5:00 p.m. until 8:00 p.m.
Overtime
More than 40 working hours per week. The maximum overtime that may be worked is 80 additional hours per year. By means of a collective agreement or an individual contract, a choice will be made between paying overtime in the amount established, which in no case may be less than the value of ordinary hours, or compensating for equivalent paid rest periods.
Social Security (what does it cover)
Health insurance is financed through social security taxes. But an employer may still provide supplemental health insurance to an employee as a benefit.
• Old-Age Benefits
• Permanent Disability Benefits
• Retirement
• Survivor Benefits
• Sickness and Maternity Benefits
• Workers’ Medical Benefits
• Dependents’ Medical Benefits
• Temporary Disability Benefits
• Permanent Disability Benefits
• Family Allowance Benefits
• Unemployment Benefits
Payroll
Salary payment currency
Euro (EUR)
Can salary be paid in a different currency other than the local currency?
No.
Payment frequency
Monthly.
VAT percentage
21%
Income Tax
Ranges from 19% to 28% for residents and non-residents For more information see https://taxsummaries.pwc.com/spain/individual/taxes-on-personal-income
Tax Payer Identification Number
Tax Identification Number – NIF (Número de identificación Fiscal)
Offboarding
Voluntary resignation
You are entitled to a severance payment, which will take into account;
• The salary that corresponds to you for the days worked after the last payroll.
• Proportional part of the extra payments not prorated, generated but not received.
• The vacations that belong to you but that you have not yet enjoyed, a time for which the company must contribute as you will see later in your working life.
• Overtime that you have not been paid, if any.
• Other amounts previously agreed or reflected in the collective labor agreement: objectives, bonuses, extraordinary bonuses.
Contract termination
Varies according to the Employment Agreement and the Collective Bargaining Agreement in effect and is based on the type of contract and the reason for termination.
Justified Dismissal
• Mutual agreement between the parties
• Reasons officially mentioned in the contract
• Resignation of the employee
• Death, serious disability or permanent, total or absolute disability of the employee
• For justifiable reasons dismissal
• For disciplinary reasons
• Legally admissible objective causes.
• Objective dismissal
• Disciplinary dismissal
• Collective dismissal
Unjustified Dismissal
Dismissals are deemed null and void if the termination is discriminatory or concerns protected employees.
• Objective dismissal: 20 days’ salary per year worked.
• Disciplinary dismissal / objective dismissal challenged by the employee: when it is declared unfair, it corresponds to 33 or 45 days per year worked.
It will vary depending on the type of dismissal practiced by the company.
Minimum Notice Period
In probationary period:
• Three days for contracts up to two weeks.
• One week for contracts from two weeks and up to three months.
• Two weeks for contracts of more than three months.
For fixed term or indefinite contracts:
• Two week for less than six month of working time
• One month for more than six months but less than three years of working time
• Three months for more than three years of working time
Immigration
Visa process
• The candidate gather all the required documents and send them to us
• From the date of submission, immigration authorities can take between 1 and 2 months to give a response (this timeline can vary a lot depending on the workload of the administration)
• Once the permit is approved, the candidate must request a travel visa at the Spanish Consulate on their residence country. Depending on the Consulate this can take a couple of weeks.
• Then, the applicant can travel to Spain, and request a residence card.
Visa documents
• License / registration required to do the work
• Work contract.
• Work authorization.
• Police record.
• Medical certificate.
• Proof of accommodation.
• Accredited professional qualification for the job.
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