Effortless Hiring in Spain

Employment Laws

• Spain's labor legislation is comprehensive, providing substantial protection to employees. Key laws include:
• Workers' Statute (Estatuto de los Trabajadores): Governs individual and collective labor relations.
• Minimum Wage Act (Mindestlohngesetz): Establishes the statutory minimum wage.
• Health and Safety Regulations: Ensure safe working conditions.

Onboarding Process

Employers are required to provide a written employment contract that outlines essential terms such as:

• Job description.
• Remuneration.
• Working hours.
• Notice periods.

While verbal agreements are legally binding, written contracts are strongly recommended to prevent disputes.

Types of Employment Contracts

1. Indefinite Contracts: Employment without a predetermined end date.
2. Fixed-Term Contracts: Employment for a specified period or project.
3. Part-Time Contracts: Employment with reduced working hours compared to full-time positions.
4. Temporary Contracts: Short-term employment, often through agencies.

Payroll Frequency

• Employees are typically paid monthly, with payments usually made at the end of each month.

Minimum Wage

• As of 2022, the minimum wage in Spain for a full-time job is €7.82 per hour, equating to approximately €1,166.67 gross per month.

Payroll Deductions

• Income Tax: Progressive tax rates ranging from 19% to 47%, depending on income levels.
• Social Security Contributions: Both employers and employees contribute to social security, covering benefits like healthcare, pensions, and unemployment insurance.

Employee Income Tax

Spain employs a progressive income tax system with rates ranging from 19% to 47%, based on income brackets.

Employer Contributions

• Employers contribute approximately 30.4% of the employee's gross salary to the social security system.

Types of Leave in Spain

1. Annual Leave

• Employees are entitled to a minimum of 30 calendar days of paid annual leave per year.

2. Parental Leave

• Maternity Leave: Female employees are entitled to 16 weeks of paid leave at 100% of their full pay, funded by the social security system.
• Paternity Leave: Male employees are also entitled to 16 weeks of paid leave under the same conditions as maternity leave.

3. Sick Leave

• Employees must obtain a medical certificate if unable to work due to sickness. The employer covers full salary during the first three days; from the fourth day onward, social security provides payment.

4. Public Holidays Spain observes several public holidays that vary by region. Common holidays include New Year's Day, Good Friday, and Christmas Day.

Mandatory Benefits

1. Social Security: Coverage includes healthcare, pensions, unemployment benefits, and parental leave funded through employer and employee contributions.
2. Additional Payments: Employees are entitled to two extra payments per year (typically in July and December), each equivalent to one month's salary.

Supplemental Benefits

Employers may offer additional benefits such as private health insurance, meal vouchers, transportation allowances, and flexible working hours to attract and retain talent.

Process

Termination must adhere to the Workers' Statute, requiring valid reasons for dismissal such as economic, organizational, or disciplinary grounds. Employers must follow fair procedures that include providing written notice and consulting with employee representatives if applicable.

Notice Period

• For objective dismissals: A minimum of 15 days' notice is required.
• For disciplinary dismissals: No notice period is required.

Severance Pay

1. For objective dismissals: Employees are entitled to severance pay equivalent to 20 days' salary per year of service, up to a maximum of 12 months' pay.
2. For unfair dismissals: Employees may be entitled to severance pay equivalent to 33 days' salary per year of service, up to a maximum of 24 months' pay.