Understanding Employment Contracts in Spain: A Comprehensive Guide
Contract of Employment in Spain
This guide provides a comprehensive overview of employment contracts in Spain, covering key aspects such as contract types, legal requirements, and the rights and obligations of both employers and employees.
Individuals in a Contract
Employee
- Over 18 years of age
- Between 16 and 18 years old who are legally emancipated
- Between 16 and 18 years old who are not legally emancipated require parental or guardian’s permission
- Foreign nationals, according to Spanish law (work and residence permit for non-European workers)
- EU citizens can move around the EU freely and engage in any labor or professional activity
Employer
- Individual or corporate body (legal person)
- To be a corporate body, the incorporation deed has to be registered in the “Registro Mercantil” (Commercial Registry)
Form of a Contract of Employment
Written Contract
An employment contract must be in writing whenever the law stipulates it. If not, it will be assumed to be a permanent full-time contract.
Verbally Agreed Contract
A verbal contract is only valid if it is a full-time open-ended contract or a full-time temporary contract with a duration of fewer than 4 weeks.
Contents of an Employment Contract
The employer must provide a written statement within 2 months of the start of employment. Any contract must be signed by both parties and registered in the employment office within 10 days. An employment contract must include, as a minimum:
- Type of contract
- Personal information of the employer and the worker
- Start date and, if temporary, its duration
- Working conditions
- Professional category
- Collective agreement applicable to the job
- Place, date, and parties’ signatures
Probationary Period
A probationary period may be included to assess if the employment relationship meets both parties’ expectations. This trial period is optional, but if agreed upon, it must be included in writing in the contract. During this period, workers have the same rights and obligations as other workers in the company. Any agreement regarding probationary periods is invalid if the worker has previously performed the same tasks, regardless of the contract type. During the probationary period, both parties can terminate the contract without prior notice or compensation.
Permanent Contracts
Permanent Contract
This contract includes the start date but not the termination date. Compensation for unfair dismissal is 33 days for each year worked, with a maximum of 24 monthly payments.
Permanent Contract to Support Entrepreneurs
This contract aims to create sustainable employment and support initiatives in companies with fewer than 50 employees.
Permanent Intermittent Employment Contract
The worker’s activity is not continuous, with alternating working and non-working periods throughout the year. The worker does not have a fixed return-to-work date.
Temporary Training Contracts
Training and Apprenticeship Contract
For workers between 16 and 25 years old without formal training. Duration: minimum 1 year, maximum 3 years. Full-time, with the first year comprising 75% work and 25% training, and the second and third years 85% work and 15% training. The salary follows the same structure.
Work Experience Contract
Requires an educational certificate (vocational training or university) obtained within the last 5 years and being under 30 years old. Duration: minimum 6 months, maximum 2 years. Can be part-time or full-time. Salary: 60% of the standard wage in the first year and 75% in the second year.
Retirement-Related Work Contracts
This contract allows an unemployed person to complement the working hours of a semi-retired worker. Requirements for the semi-retired worker:
- At least 60 years old
- 30 years of social security contributions
- 6 years of seniority in the company
The reduction in working hours and salary must be between 25% and 75%. The contract duration must be at least the remaining time until the semi-retired worker’s full retirement. There are two types of contracts in this category:
- Semi-retired contract: For a worker nearing retirement who will work reduced hours and receive a portion of their retirement pension and salary.
- Replacement contract: For a new worker who works at least the reduced hours of the semi-retired worker.