Before embarking on the journey to recruit talent in Spain, it is important to fully understand the country’s unique employment laws and landscape.
Spain stands out for having some of the most stringent worker protections, shaped by regulations from the European Union, the Spanish Constitution, and the Workers’ Statute (Estatuto de los Trabajadores).
Further complicating the employment landscape are prevalent collective bargaining agreements, introducing additional rules and restrictions in the Spanish labor market.
This means employers need to understand the responsibilities and requirements to navigate compliance in hiring a talent in the country.
📢 The Workers' Statute regulations establishes generic and basic rules for all sectors and types of companies. It applies to all national companies, while collective bargaining agreements are only applied to specific sectors or companies.
Whether you're employing global hiring strategies to Spain, or ensuring compliance while hiring remote employees, this guide is designed to provide your insights into the key aspects of Spanish employment laws, and empower you to make confident and informed decision-making when hiring in Spain.
Navigating Compliance: What to Know Before Hiring in Spain
When planning timings around start dates, it is important to take into account that the legal minimum notice period for their previous employer is 2 weeks (15 natural days).
In Spain, the probation period is based on the employee's seniority. “Qualified” technical employees can have a probationary period of six months, whereas “unqualified” employees have a probation period of two months. It is essential to always check the collective agreement that belongs to the EoR you are working with to understand the probationary period.
The minimum salary in Spain, when compared to other European countries, provides valuable context for setting competitive compensation. Additionally, delving into collective agreements and market-driven salary ranges offers a comprehensive perspective on remuneration practices. You can even leverage accessible resources such as Glassdoor to gauge industry standards.
One crucial aspect to note is to pay payroll at the agreed time every month, though the Workers' Statute is not very specific when it comes to detailing what day and in what manner the payroll must be paid.
Where there is technically no deadline for the payment of payrolls or a legal deadline for submitting the payroll, some collective bargaining agreements may establish more specific deadlines.
On this note, there are some key details that we highlight for companies to make payroll payments efficiently:
Agreed Terms: The payment must be made as agreed between the employer and the worker, or the custom of the place. Remember that it is not fixed by the current legislation although most employers pay on the last day of the month.
Periodic Payments: The salary must be paid periodically, it cannot exceed one month.
Late Payment Consequences: The worker may request the company to pay interest for late payment of his salary. This interest is usually calculated at a fixed rate, such as 10% of the amount owed, and is applied as compensation for the inconvenience and damages caused by the delay in payment.
It's also imperative to keep in mind additional components like 13th and 14th-month salaries, overtime pay, and employer contributions.
There are 3 main scenarios involving varying considerations:
Employee voluntary termination: Fostering transparent communication and adherence to agreed notice periods is crucial.
Employee who has not passed probation: A clear understanding of contract terms regarding the reasons for failure can mitigate potential conflicts.
Termination by the employer post-probation: Strict compliance with legal requirements, including notice periods and severance pay, is imperative.
This comprehensive approach ensures a fair and legally sound termination process, contributing to a harmonious employer-employee relationship.
Navigate Hiring in Spain with Confidence
For global employers, navigating compliance for hiring in Spain can be very challenging at the outset. Engaging an Employer of Record (EoR) partner to hire abroad is a strategic move, but it is also important to understand the intricacies highlighted above and ensure that your partner is able to provide support and guidance for any questions you may have. Additionally, recognizing that the EoR provider should assume the official legal employer role in Spain.
If you find yourself in need of a trusted and experienced hiring partner for talent in Spain, our team of experts at Talentvibe are here to help.