Global Expansion Resources | Spain
Spanish Employment Contracts
Helping businesses expand into Spain with the leading PEO company
Comply with Spanish employment laws and issue compliant Spanish employment contracts using our PEO Services
Producing compliant, fair employment contracts is a vital step in establishing a thriving global team. However, this is easier said than done, especially when foreign employment laws come into play.
Spanish employment laws state that employers must provide employees with an employment contract within 10 days of an employee’s start day. These can be provided in writing or orally. However, verbal contracts are rare and must be transferred to writing at either the employer or employee’s request.
Given the complexity and risk of writing compliant Spanish employment contracts, most international businesses prefer to outsource employment contracts to guarantee compliance and take liability from their shoulders. Read on to see how our Spanish PEO services can support your business with employment contracts.
What’s included:
HR software
Bespoke employee management software included in our PEO service.
Global compliance
We have expert teams across the world to ensure global compliance.
Transparent pricing
Avoid hidden costs and account for our fee with our transparent pricing.
Spain Expansion Advice
What should a Spanish employment contract contain?
In compliance with Spanish laws, a written employment contract is required for the following circumstances:
- Contracts that last longer than 4 weeks
- If employment is part time, temporary or fixed term
- If the employment is an apprenticeship
- Contracts for solicitors, lawyers etc.
When an employment contract is in written form it must specify:
- Estimate of employment duration (for temporary contracts)
- The place of work
- Working hours
- Remuneration (salary and bonuses)
- Paid leave
- Notice periods (The Labor Law states that either party terminating a contract must give 15 days notice)
- Holiday entitlement
As well as these more generic terms, employment contracts in Spain must also comply with regulations set out in The Labor Law. Meanwhile, Collective Bargaining Agreements cover an estimated 80% of Spain’s workforce and mean that employers must acknowledge and abide by legislation set out by employee’s representative’s, such as trade unions. Failure to do so could result in legal penalties, such as fines.
What types of employment contracts are there in Spain?
As with most other European countries, there are two main types of employment contracts in Spain; temporary and fixed employment contracts. Most forms of employment will fall into one of these two camps, i.e. an employment term with a fixed end date, or one without where employment runs indefinitely.
Meanwhile, training contracts and part-time contracts are also in circulation and have their own set of regulations respectively.
It is vital that companies understand the different types of employment contracts in Spain along with their respective pros and cons so they know which is best-suited for their employees and their company.
Can I change an employment contract?
Yes, employment contracts can be changed under Spanish employment laws. However, employers must inform employees of any changes, and these changes must comply with labour laws and any collective agreements in place. Failure to do so could entitle the employee to compensation.
Do I need to translate an employment contract?
Translation into other languages, while not mandatory, is recommended in order to avoid mis-translations and therefore discrepancies between employees and employers. If an employment contract is written in English, for example, and an employee cannot speak English, then this must be translated by law.
How do I write a Spanish employment contract?
Before you begin writing an employment contract, you must first establish whether you require a temporary contract, indefinite contract, part time contract or a training employment contract. More often than not an indefinite contract will be required; however, this must be checked for all individual circumstances.
Secondly, it is critical that employers determine whether a Collective Bargaining Agreement (CBA) applies to their business and therefore employees and employment contracts. A CBA is a contract between a trade union or employee representative and an employer that outlines some terms of employment such as wages, working hours and holiday entitlement. With an estimated 80% of Spanish workers covered by a CBA, and with failure to comply resulting in tribunals and penalties, checking for a CBA is a vital step to writing a compliant employment contract in Spain.
A combination of terms highlighted in a CBA and The Labour Law must be included in an employment contract. While these provide a foundation to an employment contract, they are by no means an exhaustive list. Instead, each employment contract should be catered to individual companies and employees. Likewise, while work from home is not mandatory in Spain, it is becoming more commonplace. If employees work from home for more than 30% of their working hours, a work from home policy must be drawn up and signed by both parties.
Failure to include the above and construct a compliant employment contract can lead to disputes with employees and even legal proceedings. It is therefore commonplace that new businesses in Spain use a PEO or EOR to take the liability from their shoulders.
Why choose a PEO partner to manage Spanish employment contracts?
Producing compliant Spanish employment contracts can be a complex process, often laden with risk. From disgruntled employees to legal disputes, non-compliance is something that can jeopardise your new expansion into Spain. Not to mention that employment contracts are only one task of many to overcome when expanding your business. Businesses also need to consider payroll, tax, national insurance contributions, recruitment and work visas at a minimum.
A PEO partner can take this from your shoulders, allowing you to focus on your company’s expansion knowing that employee contracts are taken care of. At Leap29 our PEO team are well-versed on the latest employment laws and contract requirements in Spain meaning we can issue contracts compliantly and promptly on your behalf.
If you want to find out more about how our PEO Services in Spain can support your international expansion, call our experts on +44 (0) 20 8129 6860 or email [email protected].
Don’t take our word for it!
“
Talk to an expert today
Whatever stage you’re at in your global expansion journey, we can help.
Contact us today to see how Leap29 can be the trusted PEO partner that supports your global expansion.
Spain
Expansion Resources
Local expertise, global reach
Employ people compliantly in 180+ countries – with or without your own foreign entities. We can help you set up and manage foreign entities – or act as an Employer of Record. We can also help with multi-country payroll and all your HR management. Wherever, whenever and however you want to employ people, we can help.
180+
Singapore
Finland
Norway
Germany
Netherlands
Italy
South Africa
Ireland
Turkey
Spain
We make expansion in Spain simple
Employing people compliantly across international borders can be challenging but we make it simple, bringing down barriers and making light work of the complexities. We offer the full range of compliant global expansion solutions so that wherever, whenever and however you want to employ people, we can support you.
EOR Services
Employ people compliantly in 180+ countries – without setting up new entities. We’ll shoulder responsibility as Employer of Record (EOR), making sure all your international employment is fully compliant.
We can also take care of your global HR from multi-country payroll to onboarding and offboarding.
Payroll Solutions
Getting global payroll right is one of the hardest challenges for any business expanding into new countries. We can shoulder this burden, freeing up valuable in-house resource to focus on growing your business.
Consider us an extension of your HR team, ready to answer all your questions large and small.
Global Mobility
Mobilise your people across borders with ease. Relocating to work abroad can feel daunting. But with Leap29 at your side, your employees can feel safe and supported.
We’ll guide your employees through the complexities of working in another country, helping them settle in fast.
Entity Services
Follow the opportunities to grow your business – wherever they take you.
We lighten the load of establishing and managing foreign entities and can help you solve all your entity challenges from running compliant, accurate multi-country payroll to local accounting and financial reporting.
PEO Solutions
Employ international talent wherever and whenever you need it – and enjoy the peace of mind of knowing you’re fully compliant. Our Professional Employer Organisation (PEO) services allow you to focus on growing your business while we handle compliance, multi-country payroll and your global HR.
Support & Advisory
The help you need to make your global growth effortless – trusted guidance and advice on your expansion challenges large and small.
HR Support
When you’re employing people in lots of different countries, answering just a simple query can take a disproportionate amount of time for your in-house HR team. Our HR Support service reduces this burden, saving you time and money and giving you the confidence of knowing your employees are well looked after, whatever their location.
Contractor Payroll
Enjoy compliant contractor payroll that meets all local requirements for tax, social security and employment legislation. We understand the importance of compliant contractor payroll to the success of your business and will pay your contractors on time, every time.
Start hiring today – and onboard within hours.
Pricing
Budget confidently with transparent, competitive fees and no hidden costs.
Want us to shoulder employer liability and take care of your global HR through our EOR solution? No problem. Just want global payroll? You can have that too. Pick the solutions that your individual business needs.