Hiring Employees in Spain

The legal regulations related to employment in Spain are complex and their main goal is to protect the rights of the employees; thus, foreign investors who want to hire local workforce should study the employment laws. For each category of jobs, there is a different set of rules related to payment, salary range, holidays, working hours and other related matters and our team of lawyers in Spain can offer in-depth assistance on the main procedures related to employment in this country. 

General rules for employment in Spain  

If you need information regarding the general rules about employment and the rights of an employee, it is important to know that a Spanish employee is entitled to the following: 

1. 40 hours of work per week;
2. 14-16 payments per year and the annual salary will include these extra-wages;
3. 30 calendar days of paid vacation per year;
4. a compensation must be paid in case of firing an employee due to reasons that don’t concern his/her behavior or performances;
5. the social security funds will cover the payments for an employee who is ill and stays at home for a certain period of time, if he/she receives a proof for his/her illness from a doctor;
6. there is a 15 days vacation for marriage, two days for the death of a close relative (four if travel is needed), five days for a relative's serious illness or hospitalisation, one day for home relocation, 19 weeks of paid birth and childcare leave for each parent (32 weeks for single parents).

The video below provides more details on the regulations for hiring employees in Spain: 

Why hire employees in Spain

The main advantages for hiring employees in Spain are the following: 

1. their relatively lower salaries compared to other countries in EU and USA;
2. their abilities to work for local and foreign employers;
3. the unemployment in Spain, which is still at a high level (meaning you will find relatively fast the employees you need for starting or expanding a business in this country);
4. the possibility to offer a fixed-term contract, although since the 2022 labour reform only for production peaks or to replace an employee.

What is a permanent employment contract in Spain?  

Spain offers several types of employment contracts, but the one that is generally recommended is the permanent/indefinite contract, as the local government tries to promote employment stability, which is generally attained through this type of contract. Thus, most of the employers are encoraged to sign permanent contracts with their employees, as this type of contract is seen as the employment norm in Spain. 

However, employers in Spain can also sign temporary contracts in specific conditions but, regardless of the type of contract signed here, it is necessary to respect the minimum legal requirements imposed by the Statute of Workers and, in this sense, our team of Spanish lawyers can provide legal assistance.  

The advangates of a permanent employment contract in Spain  

As mentioned above, employment in Spain is promoted through permanent employment contracts. When signing this type of contract, the employer can benefit from several incentives, which can take the form of tax benefits or social security reductions. 

It is recommended for local and foreign companies to observe the rights of the employees as there are a lot of litigations carried out in courts started by employees against their employers. The employees generally win these litigation cases, if their employers didn’t respect their legal obligations in case of dismissal and the judges usually decide in favor of the employee.

For more details on the regulations related to hiring employees, you may contact our law firm in Spain. Our Spanish lawyers will present you the legislation on this matter and will help you take the right decisions regarding your employees.