Recruit and Manage Human Resources in Spain

According to Eurostat, Spain ranks 3rd in the EU and 6th globally for its high-skilled workforce of scientists and engineers. This positions the country as an attractive destination for recruitment and investment in skilled talent.

What are the Main Types of Contracts in Spain?

Employment contracts are regulated by Legislative Royal Decree 2/2015, also known as the Workers’ Statute.

Temporary contracts

Temporary contracts are frequently used when a company needs an occasional worker for a precise period (seasonal work, replacement, …).

Fixed-Term Contracts: Contracts for specific periods or projects, such as those due to production needs or employee substitution
Training Contracts: Designed for acquiring professional skills or for work-study arrangements

Permanent contracts

Permanent contracts do not have a predetermined end date.

Indefinite-Term Contracts: Permanent contracts without a specified end date
Part-Time Contracts: Contracts for part-time work
Discontinuous Permanent Contracts: For seasonal or intermittent work

What are the Working Conditions in Spain?

Working hours: The standard workweek is 40 hours.

Holidays and leave: Employees are entitled to paid annual leave, typically 22 to 30 days.

Minimum Wage: The minimum wage in Spain is, €37.80/day, €1,034 per month. However, the workers’ salaries may vary depending on their position, level of experience, and bonuses. For example, a salesperson with 5 years of experience can be paid between €30,000 and €35,000 annually, excluding bonuses.

The Social Security Contributions in Spain

Both employers and employees contribute to the Spanish Social Security system. The employer’s contribution usually amounts to 28.3% of the employee’s gross salary, while a worker pays 6.35%.

Collective Agreements and Severance Pay in Spain

Apart from the statutory payments, there are also collective agreements between the employer and a workforce’s union. Collective Agreements are negotiated between employers and unions and can provide additional benefits and obligations. They often cover specific sectors and industries.

The severance pay amounts to 20 days of monthly salary per year worked with a cap of 12 payments or a complete yearly payment. The employer is must also inform the employees about termination according to collective agreements.

In Spain, employers must comply with labor regulations when hiring employees, as these laws aim to protect their rights and well-being; otherwise, they risk legal implications. Therefore, here are some key requirements that employers must meet under Spanish labor laws:

Timekeeping: In the interest of transparency and fairness in working time management, employers must accurately record employee working hours, as stipulated by Royal Decree-Law 8/2019. Failure to comply with timekeeping requirements can result in penalties from €60 to €187 515.
Discrimination and harassment: The Equality Law (Ley de Igualdad 3/2007) mandates that companies of all sizes establish policies to prevent discrimination and harassment in the workplace. Employers must handle and prevent any form of harassment, including sexual harassment, bullying, and discrimination based on gender, ethnicity, or any other protected characteristic. Fines for non-compliance with these regulations can range from €7,501 to €125,018, depending on the severity of the violation.
Workplace Safety (Plan de Riesgos Laborales): In Spain, companies must ensure that their employees work in a safe and healthy workplace. They must comply with the health and safety requirements stated in the Plan de Riesgos Laborales to avoid workplace accidents and ensure the well-being of their employees. Non-compliance can result in severe financial fines of €45 to €983.736.
Digital Disconnection: Under the Data Protection Law (LOPD), employees have the right to disconnect from work-related digital communications outside of their working hours. Employers must establish a digital disconnection policy to respect employees’ privacy and provide enough rest periods. Non-compliance with digital disconnection regulations can result in fines ranging from €751 to €7,501.
Remote Work Agreement: The recent Royal Decree-Law 5/2023 requires companies to formalize remote work agreements if employees work remotely for at least 30% of their working time over a 3-month period. For non-compliance with these regulations, fines can range from €70 to €225,018.
Equality Plans: Companies with 50 or more employees must implement Equality Plans to promote equal treatment and opportunities within the organization. Non-compliance with Equality Plan requirements can result in significant financial penalties.