Staff - Spain

Updated 11/2010

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Legal requirements

Employment relationship

The employment relationship involves aspects of employment, recruitment, working conditions, health and safety at work, social security and tax, among others.

The employment relationship is regulated by the following rules: Statute of Workers' Rights, labour legislation, Collective Agreements concluded by trade unions and employers, employment contract signed by the employee and employer and, finally, common practice. The following are particularly important:

• Statute of Workers' Rights
• Law on the Prevention of Occupational Hazards
• General Law on Social Security

Recruiting European Union citizens and non-EU nationals

Citizens of the Member States of the European Union can work in Spain. If they want to live in Spain for more than three months, they must register in a register of foreign nationals.

Non-EU nationals have to meet a series of requirements and have the appropriate authorisation in order to live and work in Spain. More information on recruiting foreign nationals is available on the following web page:

• Recruiting foreign nationals

Content of the employment relationship

Following recruitment, working conditions are regulated by the Statute of Workers' Rights, labour legislation, collective agreements, employment contracts and common practice.

Statute of Workers' Rights

The Statute of Workers' Rights sets out the basic content of the employment relationship: capacity to work, rights and obligations of employees, working conditions (working hours, holidays, rest breaks), term of the contract, etc. It also regulates the functional and geographical mobility of employees and the temporary suspension and termination of their employment contracts.

• Statute of Workers' Rights

Collective agreements

In Spain as in other countries and in accordance with labour law, the representatives of employers and employees are able to regulate labour relations. This occurs through collective bargaining and collective agreements. Collective agreements are concluded between the representatives of employees and employers and regulate labour relations in a particular economic and geographical context.

• Collective Agreements

Employment contract

In accordance with the law and any collective agreements, the content of the employment relationship is set out in the employment contract agreed between the employer and the employee.

In Spain there are two types of contract: general and special.

There are different categories of general contract: open-ended, temporary, full-time, part-time, training, etc.

Some employment contracts or relationships are subject to special legal rules. These include: contracts for senior management, sportspeople, public entertainers, stevedores, etc.

• More information on the types of employment contract: Red Trabaja
• Types and categories of employment contract: Ministry of Labour and Immigration
• Characteristics of employment contracts

Labour Inspectorate

The Labour Inspectorate is responsible for ensuring that the rules on employment relationships are observed.

• Labour Inspectorate

There are minimum social rules to follow, especially about non-discrimination, gender equality and health and safety.

• Staff welfare — Spain

Administrative procedures

As a business owner, you can work on your own or with other partners. You can also take on employees for the purpose of your business activity. These employees work under your direction.

There are three key stages in the management of human resources in a business: recruitment of employees, development of the employment relationship, and termination.

The procedures associated with managing employees are mainly conducted with: the National Tax Office, the Social Security Agency and the Public Employment Services.

These procedures can be carried out in person at the relevant offices or more easily and quickly online. Information and forms can be accessed without the need for identification. Some procedures occasionally require identification by using the electronic national identity card, other electronic certificates, Silcom certificates used by Social Security or passwords.

Recruiting a new employee

Businesses need to consider the following factors when recruiting an employee: needs of the business activity, number and profile of the employees sought, type of contract to be used, and financial benefits of recruiting certain groups of people or concluding certain types of contract.

The Public Employment Services may be useful in finding professionals or workers for your business:

• Red Trabaja for employers: find professionals
• Public Employment Services of the Autonomous Communities

When recruiting non-EU nationals, you need to meet certain requirements and carry out certain associated procedures. Information is available through the following link:

• Recruiting foreign nationals

Information on the various types of contract that can be used – general or special – is available through the following link:

• Red Trabaja: open-ended, temporary, full-time, part-time, practice and training employment contracts
• Employment contracts: Ministry of Labour and Immigration

If you need information on the financial benefits of recruiting certain groups of people and using certain types of contract, this is available through the following link:

• Financial benefits of recruiting certain groups of people and using certain types of contract

Recruiting an employee: obligations of the business

To recruit employees, businesses must be registered with the National Tax Office and with Social Security. Businesses are usually already registered and this step is therefore not necessary.

• National Tax Office: registration in the register of businesses and professionals, to identify the business and its employees
• Social Security: information on business registration
• Social Security: online business registration

Having selected the person to be recruited and signed the employment contract, the business must report this situation to the relevant authorities, either in person or online.

A) National Tax Office:

Registration in the register of businesses and professionals, in which the business and its employees must be identified and any changes recorded.

• Register of businesses and professionals

B) Social Security:

Businesses are required to register employees with Social Security. Employees may be registered under either the general or the special scheme.

The general scheme covers most employees.

The special scheme is for certain employees who, due to the nature of their work, are subject to special arrangements (artists, stevedores, etc.).

• Allocation of a Social Security number to an employee
• Affiliation and registration of employees with Social Security: information and forms
• Red system: allows businesses to complete procedures online

C) Public Employment Services:

Businesses are required to send contracts to the Public Employment Services of the Autonomous Community in which the employee works, so that these can be recorded. The time-limit is 10 days from recruitment.

• Public Employment Services
• Online submission of contracts: Contrata and TAED

Employer’s obligations during the employment relationship

During the term of the employment relationship, employers must do the following:

A) National Tax Office: personal income tax (IRPF) withholdings:

Employees of a business must pay personal income tax on their employment income. To make this easier, employers withhold an amount from the wages of employees and pay this to the tax office as an advance payment on the total amount that employees must pay. This withholding and payment to the tax office are normally carried out every quarter, either in person or online.

• Employee IRPF withholdings on account
• IRPF withholdings on account: program to help manage these withholdings

B) Social Security:

Employee contributions: the Social Security system in Spain is financially supported by the contributions of employees and employers. Businesses must pay a contribution for each employee. They normally also deduct the employee’s contribution from their wages. Businesses pay this contribution in the month after having paid the wages.

• Social Security
• Social Security contribution of employees
• RED system: allows businesses to complete these Social Security procedures online

During the employment relationship, businesses must inform Social Security of the following events:

• Sick and fit notes in the event of sick leave

Changes that may affect employees in terms of Social Security, such as their affiliation and the relevant scheme. This can be done in person or using the RED system.

• Affiliation, registration, amendment and de-registration of employees with Social Security: information and forms
• RED system: allows businesses to complete these Social Security procedures online

C) Public Employment Services:

Businesses must report changes that may affect the contracts of their employees.

• Online submission of contracts: Contrata and TAED

Termination of the employment relationship

At the end of the employment relationship, the business must notify this to the National Tax Office, Social Security and the Public Employment Services, either in person or online:

A) National Tax Office:

• Notification of termination so that this can be recorded in the register of businesses and professionals, in which the business and its employees must be identified and any changes recorded

B) Social Security:

• Notification of de-registration of employees from the Social Security scheme: information and forms
• Notifying the de-registration of employees from the relevant Social Security scheme can be done online: RED system

C) Public Employment Services:

The business must notify the termination of the employment relationship and certify the work carried out by the employee to the Public Employment Service for the relevant workplace, either in person or online: Certifica.

• Online submission of contracts: Certifica

Resources

• National Tax Office: Businesses
• Social Security: Businesses
• Public Employment Service: Red Trabaja: Businesses

EURES, the European job portal, offers employers information and support on recruiting across the EU. As well as assisting jobseekers, it helps entrepreneurs find workers from across the EU. In border regions, EURES provides information on cross-border commuting and helps workers and employers with problems that may arise.

• About EURES
• Eures advisers

Check also the legislation on this topic in:

• European Union
• Austriadeen
• Belgiumenfrnl
• Bulgariabgen
• Cypruselen
• Czech Republiccsen
• Denmarkdaen
• Estoniaenet
• Finlandenfi
• Franceenfr
• Germanydeen
• Greeceelen
• Hungaryenhu
• Irelanden
• Italyenit
• Latviaenlv
• Lithuaniaenlt
• Luxembourgenfr
• Maltaen
• Netherlandsennl
• Norwayenno
• Polandenpl
• Portugalenpt
• Romaniaenro
• Slovakiaensk
• Sloveniaensl
• Spainenes
• Swedenensv
• United Kingdomen