Our comprehensive solution and Global PEO service empower clients to seamlessly manage payroll in Spain, alleviating the burden of HR services, tax obligations, and compliance management. As seasoned Global PEO specialists, we handle employment contract intricacies, statutory and customary benefits, employee expenses, and, if necessary, severance and termination procedures. Additionally, we stay vigilant, keeping you informed about any updates to local employment regulations in Spain.
With our support, your new employee transitions smoothly, experiences a superior onboarding process, and fully dedicates themselves to your team. Rest assured, our dedicated team of employment experts stands ready to assist with every hiring endeavor. EVS enables you to tap into the talent pool of the brightest individuals in over 185 countries worldwide, effortlessly and efficiently.
Spain, situated on the Iberian Peninsula, shares the longest border within the European Union with Portugal. Spaniards are known for their sociable nature and preference for establishing personal connections before delving into business matters. Therefore, be prepared to invest time in cultivating relationships and sharing personal anecdotes about your family and lifestyle before broaching business topics. Meetings often commence behind schedule, and discussions frequently veer off track, characterized by numerous interruptions and concurrent conversations—an indication of genuine interest rather than rudeness. While significant decisions are seldom reached during large gatherings, they are typically made by senior management. Agreements are commonly verbalized first and then documented.
When negotiating the terms of employment contracts and offer letters with employees in Spain, consider the following standard benefits typically offered in the country:
Basic Facts About Hiring in Spain
In Spain, employment is subject to stringent regulations, with jobs categorized into various types, each governed by its own set of rules. These regulations dictate salary brackets, working hours, and annual leave entitlements. Employees typically favor indefinite contracts due to the greater job security they offer, making it more challenging for employers to terminate their employment. Consequently, negotiations for an indefinite contract can be just as crucial to an employee as discussions regarding salary.When negotiating the terms of an offer letter or an employment contract with a candidate in Spain, it's beneficial to consider the following standard benefits typically offered in the country:
Spain Holidays
The people of Spain celebrate 10 national holidays:• New Year’s Day
• Three Kings Day
• Labor Day
• Good Friday
• Assumption Day
• National Day
• All Saints Day
• Constitution Day
• Immaculate Conception Day
• Christmas Day
In addition to the national holidays, there are provincial holidays which vary in each of the autonomous communities.
Bonus in Spain
A 13th month or annual bonus is not required in Spain. A commission plan or quarterly bonus plan is a common benefit for a sales employee.Spain Working Hours
Spanish employees expect to work a 40 hour week.Vacation in Spain
he market norm and the minimally required vacation days are 30 calendar days (i.e., 23 paid business days per year). The vacation time cannot be “paid out.”Sick Leave in Spain
There are no standard sick days. Under Spain’s labor law, when a worker is temporarily unable to work and in need of medical assistance due to illness or accident, he/she will be paid at least 60 percent of his/her wages. The employer normally pays the worker for a temporary sick leave and is reimbursed by the Social Security department. The maximum period of such leave is 18 months, after which the situation must be reviewed. The amount of sick leave pay depends on the status of the employee and the applicable collective bargaining agreement.Spain Maternity Leave
Maternity leave consists of 16 weeks’ paid leave, 6 weeks of which must be taken after the birth. To be eligible for maternity leave, the mother had to have registered with the social security office and have made contributions for a minimum of 180 days during the prior seven years or a total of 360 days during their career. One year of unpaid leave is also granted after the paid leave is taken and the mother’s job is guaranteed on return. The mother may take an additional two years of unpaid leave, but her employer does not have to offer her previous job to her on her return to work. Paternity leave is 30 days, with additional days allowed if there were complications for the mother or the baby.Termination/Severance in Spain
A probation period of no more than 6 months for qualified technicians (or 2 months for other workers) may generally be agreed to in writing in the employment contract, which is filed at the local employment office.In general, for an indefinite contract in Spain without a trial period and without other specific agreements, an employment contract can be terminated for the following reasons:
• mutual agreement between the parties
• reasons mentioned officially in the contract
• resignation of the worker
• death, serious invalidity or permanent, total or absolute invalidity of the worker
• retirement of the worker
• death, retirement or invalidity of the contractor or the end of their 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
In practice, when an employer assesses that an employee is poorly suited for the role, an employer and an employee usually come to a mutual agreement to terminate the contract. The expected liability for terminating an employee in Spain may be budgeted as a severance fee for a wrongful termination equal to 33 days of salary per employment year (basically one month of salary for every year worked with the company.) The calculation base for the fee includes extra income as bonus and commissions, i.e., it is calculated on the basis of total gross income of the last 12 months. In addition, when the company wants to terminate, the company should expect to pay one additional month in lieu of notice, over and above the severance fee.
Employees who believe they have been terminated unfairly may contest against their termination in a labor tribunal.
