An employer of record in Spain refers to the entity that is allowed to employ local workforce on behalf of a company, typically a foreign company. This is an employment service through which a foreign company can outsource any matter related to employment, without having to learn the local law and practices.
The main advantage of addressing to a Spanish employer or record is that the company can focus on other important business matters, such as registering a local legal entity and completing the basic incorporation aspects.
If you need the services of a Spanish PEO (Professional Employer Organization), you can easily address to our law firm in Spain, where you can find all the necessary support and information.
What are the main services of a Spanish PEO?
Once a foreign company will address to the employer of record in Spain, all matters concerning employment will fall under the responsibility and the supervision of the PEO in Spain.
Some of the basic services a company can obtain when addressing to the Spanish PEO are presented in the list below:
- legal assistance for work permits and visas for the employment of foreign employees;
- hiring the new staff following all the employment rules and regulations applicable in Spain;
- preparing the employment contract for the new workforce;
- full responsibility for payroll matters, taxation of the salary and other human resources matters;
- maintaining the evidence of holiday benefits, maternity leave, sick leave, etc;
- the company that hires the employer of record will also receive any updates concerning employment laws, etc.
However, please mind that the responsibility of the employer of record is limited to matters presented above and does not interfere with the company’s policies concerning their own employees.
This means that the day-to-day activities carried out by the employees are 100% regulated as per the internal rules of the company.
A major advantage for outsourcing employment matters to an employer of record in Spain is that all documents, procedures and compliance measures are carried out without the participation of the company that opted for this service.
Meanwhile, the company can take care of other matters related to incorporation, business licenses, selecting an office, etc., drafting and signing contracts and for all these, our law firm in Spain remains at your disposal.
What should companies know about employment in Spain?
Foreign companies expanding on the Spanish market must know that Spain follows the EU directives related to employment, but also national regulations.
In the following list, our Spanish lawyers have prepared a short presentation regarding few important employment matters:
- an employment contract in Spain must stipulate that an employee can’t work more than 40 hours per week (or maximum 9 hours per day);
- in May 2022, the minimum salary was established at EUR 1,125.80;
- Spanish employees can receive 2 additional payments per year, besides their 12 yearly salaries – this usually happens before the Christmas holiday and the summer vacation;
- employment contracts can stipulate a probation period, which, in Spain, can be of minimum 2 months to maximum 6 months;
- employees are entitled to 30 days of vacation (days paid), and to this, an additional of 14 other days are free days due to the country’s national celebrations.
Spain also regulates collective employment contracts; our law firm in Spain can provide in-depth legal information concerning the main differences that can appear between individual and collective contracts.
Of course, the employer of record in Spain can handle all the procedures related to the latter type of contract, in accordance with the current regulations prescribed by the Ministry of Employment and Social Economy.
For more information related to this subject, we invite you to contact our team of Spanish lawyers.