Labor and Social Security Regulations | Escoem

Labor and social security regulations

Labor and social security regulations

Contracts can be made verbally or in writing, unless there are express provisions that require a written contract (for example, temporary contracts, part-time contracts and training contracts). If this formal requirement is not met, the contract is understood to be permanent and full-time, unless proven otherwise.

Companies must provide the workers’ statutory representatives (if any) with a basic copy of all contracts to be made in writing (except for senior management contracts). The hiring of workers must be notified to the Public Employment Service within ten days of the contracts being made.

There are various different types of contract, including indefinite-term, temporary, fixed-term, training, distance work and part-time contracts.

In the website of the National Public Employment Service any can access a virtual assistant for employment contracts which, based on four basic types of employment contracts (indefinite-term, temporary, training and work-experience contracts), suggests and prepares the type of employment contract that best suits the characteristics of each new hire.

The labor relationship is governed by the employment contract, the collective labor agreement, the Workers’ Statute and other European and international regulations.

Salary: May be established in the employment contract or in the collective labor agreement for the occupational group in question. May not be less than the minimum wage (€950 gross per month in 2020).
Working hours: As established in the employment contract or in the collective labor agreement. May not exceed 40 hours per week, calculated on an annualized average basis.
Vacation: 30 calendar days (collective labor agreement may improve it).
Business succession: Employees’ labor relationships are not extinguished in the event of an inter vivos transfer or mortis causa transmission of a company.
Foreign workers: A work permit is required (depending on the contract and the type of work), except for EU citizens, who are exempt from this requirement.

Maximum base: 4.184 euros
Contribution rates under the general program:

- Employee contribution: total of 6.35% for all contingencies (6.40% for fixed-term contracts)
- Employer contribution: total of 29.90% for all contingencies except work-related accidents and illnesses (31.10% for fixed-term contracts)

An employment contract may be terminated for a number of reasons which normally do not give rise to any dispute, such as mutual agreement, expiration of the contractual term, death or retirement of the employee or of the employer, and so on.

In the event of termination by the employer, there are three main grounds for dismissal of an employee:

Collective layoff.
Objective grounds
Disciplinary action

Companies are obliged to respect equal treatment and opportunities in the workplace, for which they must adopt measures aimed at avoiding any type of labor discrimination between women and men.

Companies with 50 or more workers need to implement and apply an equality plan, with the scope and content established by law, which must be negotiated with the legal representation of the workers.

Since March 1, 2019, companies have the following deadlines to have this equality plan in place:

Companies with more than 150 and up to 250 workers had a one-year period for the approval of equality plans.
Companies with more than 100 and up to 150 workers have a period of two years for the approval of equality plans.
Companies with 50 to 100 employees have a period of three years for the approval of equality plans.

Equality plans must contain an ordered set of evaluable measures aimed at removing obstacles that impede or hinder the effective equality of women and men. Before establishing the plan, a negotiated diagnosis should be drawn up, where appropriate, with the legal representation of the workers, which will contain at least the following subjects:

Selection and contracting process.
Professional classification.
Professional promotion.
Working conditions, including the salary audit between women and men.
Co-responsible exercise of the rights of personal, family and work life.
Under-representation of women.
Prevention of sexual harassment and because of sex.


World economy

Spain is a modern economy with a GDP of 1,200 million.

Foreign companies

They chose Spain for business and investment

EU economy

Spain is the fourth largest economy in the European Union.

Fiber optic homes

Spain is the country in the European Union with the highest FTTH penetration rate.

Distribution of the main exports and imports in Spain


  • Equipment goods20%
  • Foods16%
  • Automotive sector15%
  • Chemical products14%


  • Equipment goods21%
  • Chemical products15%
  • Energy products13%
  • Automotive sector12%

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Antonio Ramón Iáñez Sáez

Eloy García Tejada

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