Understanding Employment issues in Spain

Employment issues in Spain - People Development Network
Employment issues in Spain - People Development Network
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Dealing with employment issues in Spain

The legislation, attitudes and customs of a country can have a significant impact on the success of your business. If you decide to set up a company in Spain be sure you are aware of the Spanish business advertising working culture and Spanish employment legislation.

Protecting Workers

Spain is considered a rather bureaucratic country and Spanish labour legislation places emphasis on protecting workers and not on empowering business owners. Labour laws in Spain protect the rights of employees. Like in many other European countries, the main aim of the law is to protect employees from exploitation. Additionally, Spanish labour law ensures the protection of extensive rights and privileges of employees. Spanish employees are entitled to enjoy the one month’s paid holiday and 14 public holidays. The labour law also guarantees the employees at least minimum wage and 14 wages per year. Such extra payments is a long-time tradition in Spain.

Do not forget that employees in Spain are entitled to all the benefits provided by the Spanish labour legislation.  These benefits also include working conditions, dismissal indemnities, maternity leave, etc. The same applies to foreigners working in Spain.

Support of Job Creation

The Spanish government also supports job creation by giving subsidies to entrepreneurs. If setting up a business in Spain and hiring employees for your business, you shall register them at the Social Security General Treasurership. After that, you as an employer will have to register the employment contract of each employee with the Spanish Institute of Employment. This must be done within ten days from the registration at the Social Security. It is illegal in Spain to hire employees without any contracts or Social Security registration. Thus, in case of failure to fulfil necessary procedures the employer may be fined by Labour Inspectors for unregistered employees.

A foreign investor who registered his business in the country shall pay Social Security contributions for employees. Sometimes, the employer may obtain reductions in their social security contributions if he employs people meeting some certain criteria for indefinite periods.

Employment Contracts

Spanish labour law provides different types of employment contracts. These include the part-time work contract which is widely spread in Spanish companies. This type of contract is very popular among small businessmen.  This is because a part-time contract is flexible and may satisfy the small new businesses’ needs in certain moments.

Besides the mentioned above, it is useful to know for those who want to set up a business in Spain that personal contacts are very important for employees here. Building a friendly relationship is one of the most significant things. On the other hand, planning is not the strongest side of Spanish employees. It is known very well that Spanish people do not have the same concept of time as employees from other European countries. Being late is usual and missing deadlines is not considered impolite since they are not viewed as binding.

These are only general guidelines for hiring employees in Spain.  All questions about the law’s applications to individual cases and company culture specifics should be directed to a professional.

Make sure that your chosen employment professional has lots of experience in dealing with hiring, labour regulations, employment culture, tax obligations and can advise you on how the whole system functions.