G-P’s Global Growth Platform™ makes it possible to start obtaining services in Spain in minutes via our global entity infrastructure — allowing your company to expand your global footprint without the hassle of entity setup and management. G-P provides services in Spain for its customers through the assistance of one or more professionals capable of meeting the demands expressed by the customer.
Our global employment products, including G-P EOR Prime™ and G-P EOR Core™, are backed by the largest team of HR and legal experts in the industry. We handle the growing complexities of global expansion and compliance for you — so you can focus on the global opportunities ahead.
You’ll have peace of mind knowing you have a team of dedicated experts to support your growth. G-P allows you to harness the talent of the brightest people in 180+ countries around the world, quickly and easily.
Hiring in Spain
When negotiating terms of an offer letter or an employment contract with potential hires in Spain, it may be useful to keep the following standards in mind.
Employment contracts in Spain
In Spain, the format of the employment contract, either oral or written, can be determined upon mutual agreement between the employer and the employee. However, some specific situations do require the contract to be in writing, for example, in the context of a part-time, fixed-term, or telework arrangement. If the employment relationship lasts more than 4 weeks, it must also be reflected in writing.
Working hours in Spain
Employees in Spain typically work 40 hours a week. However, there are various exceptions for certain sectors and types of activity. Collective Bargaining Agreements (CBAs) may also provide for different maximum working hours.
If working hours vary at different times during the year, these can be determined through agreement with employees or their representatives. In the absence of an agreement, employers can adjust up to 10% of an employee’s work hours throughout the year.
If employees work more hours than what is stipulated in the employment contract, it’s considered overtime. Employees cannot work more than 80 overtime hours in a year. In addition, employers must get consent from employees for overtime work, unless it has previously been agreed to in a CBA or individual employment contract. When it comes to compensation, employees can choose between monetary payment or additional paid time off.
There is no specific rate of pay for overtime. The rate is normally defined in the employment contract or CBA, but it must be at least the usual hourly rate.
Holidays in Spain
In Spain, there are 9 national holidays:
- New Year’s Day
- Epiphany
- St. Joseph’s Day
- Assumption Day
- National Day
- All Saints’ Day
- Constitution Day
- Immaculate Conception Day
- Christmas Day
In addition to the national holidays, there are regional holidays, which vary in each of the autonomous communities.
Vacation days in Spain
The market norm and minimally required vacation days are 30 calendar days (i.e., 23 paid business days per year).
Spain sick leave
In Spain, the first 3 days of sick leave are typically unpaid, unless mutually agreed upon by both parties. From the 4th day up to 365 days (extendable by another 180 days), employees should receive payment while on sick leave; however, the employee needs to provide a medical certificate in order to claim sick pay.
If an employee has made social security contributions for a minimum of 180 days in the last 5 years and is sick or injured for more than 20 days, the National Social Security Institute may declare them temporarily disabled. During this period, their work contract is suspended, and they receive a subsidy to make up for lost wages due to their inability to work.
If it’s a non-work-related temporary disability, the benefits are as follows:
- The first 3 days are usually unpaid.
- From the 4th to the 15th day, the employer pays 60% of the employee’s social security contributions.
- After that, the government pays 75% of the social security contributions for up to a year (extendable by another 180 days).
If it’s a work-related temporary disability, the benefits are as follows:
- The 1st day is usually unpaid.
- From the 2nd to the 15th day, the employer pays 75% of the employee’s social security contributions.
- After that, the government pays 75% of the employee’s social security contributions for up to 6 months (extendable by another 6 months).
- Some companies decide, through an agreement, to pay the full regular salary for temporary disability. In that case, employers cover the difference between what the law requires (60% to 75% of social security contributions) and the full salary.
Maternity and paternity leave in Spain
Maternity leave consists of 16 weeks of paid leave — 6 of which must be taken after the birth. To be eligible for maternity leave, the birthing parent has to be registered with the social security office and have made contributions for a minimum of 180 days during the prior 7 years, or a total of 360 days throughout their career.
After the completion of the paid leave, the birthing parent is also entitled to 1 year of unpaid leave, with the assurance that their position will be guaranteed upon their return. The birthing parent may take an additional 2 years of unpaid leave, but employers are not obligated to reinstate them in their previous position upon their return to work.
Paternity leave also consists of 16 weeks’ paid leave — 6 of which must be taken after the birth.
Health insurance in Spain
Health insurance is funded through social security taxes. Supplementary health insurance may be provided by employers as a fringe benefit.
Spain supplementary Benefits
Employers are free to choose which additional benefits to offer employees. The most typical fringe benefits in Spain are:
- Life insurance or death in service
- Private medical insurance
- Pension plan
- Meal vouchers
Bonuses
In accordance with Spanish law, a bonus is a form of personal compensation that a company provides when an employee meets predetermined goals or excels in terms of performance. A 13th-month salary or annual bonus is not required in Spain but may be an attractive supplementary benefit to help boost retention efforts.
Termination/severance in Spain
A probationary period of up to 6 months for highly qualified employees — or 2 months for other employees — may be agreed to. However, an applicable CBA may provide different limits. In general, highly qualified professionals are considered to be those who possess advanced academic training, special skills, or extensive experience in specific areas. Employers may terminate the employment relationship during the probationary period without reason, notice, nor compensation.
In general, indefinite contracts in Spain without a trial period or other specific agreements can be terminated for the following reasons:
- Mutual agreement between the parties
- Stipulations outlined in the contract
- Resignation
- Death, serious invalidity, or permanent invalidity of the worker
- Retirement
- End of the worker’s legal status
- Collective dismissal (economic, technical, organizational, or production grounds)
- Express wish of the worker on justified grounds
- Dismissal on disciplinary grounds
- Legally admissible objective causes
Where the dismissal is unfair, the employee is entitled to severance pay of 33 days’ salary per year worked. In addition to the severance fee, employers must provide the required notice period or pay in lieu of notice. Such notice period depends on the applicable CBA and the reason for termination.
If an employee is dismissed due to redundancy, they are entitled to a statutory compensation of 20 days’ salary per year of service, up to a maximum of 12 months’ salary.
Employees who believe they have been terminated unfairly may contest in a labor tribunal.
Paying taxes in Spain
Both employers and employees pay social security taxes during the employment relationship. The employee’s contribution depends on their salary but is capped at a maximum of EUR 4,495.50.
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