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Employment Law Overview Spain

Introduction

As is the case in other European countries, Spanish labour law is very comprehensive and provides significant protection for employees. The labour law regulates individual and collective relationships between employees and employers, the scope of which extends to other related areas such as social security, health and safety at work, special employment relationships and procedural law.

Key Points

  • Non-EU citizens must obtain a work permit.
  • In principle, employment contracts are presumed to be for an indefinite term. However, the number of fixed-term employment contracts are subject to some limitations.
  • Minimum working conditions are largely set out in the Workers’ Statute and applicable collective agreements.
  • Employment contracts are automatically transferred with the business to the new employer. Employees’ rights and obligations are also transferred.
  • Termination can be based on objective grounds.
  • Dismissals are void if the termination is discriminatory or involves protected employees.

The economic crisis of 2008 revealed the unsustainability of the Spanish labour model. The labour legislation was updated in 2012 to adequate itself in a time of crisis within the labour market. Royal Decree-Law 3/2012 of 10 February, on urgent measures to reform the labour market, significantly modified the institutional framework of Spanish labour relations.

The main sources of Spanish employment law include:

  • The Spanish Constitution dated 17 December 1978
  • Royal Decree 2/2015 (the Workers’ Statute)
  • Royal Decree-Law 3/2012 of 10 February on urgent measures to reform the labour market
  • Law 3/2012 of 6 July 2012 on urgent measures to reform the labour market
  • Royal Decree-Law 16/2013 on measures to improve hiring
  • Law 5/2000 on Labour Infractions and Sanctions
  • Law 31/1995 on Work Risk Prevention
  • Law 3/2007 on Equality between Men and Woman
  • Royal Decree 8/2015 on Social Security
  • Collective Bargaining Agreements, applicable to both the company and its workers
  • Employment contracts
  • Habits and common usage
  • General Principles of Law

New Developments

The most important new legislation from 2021 to 2024 includes the following:

  • Royal Decree-Law 9/2021 of May 11 reinforces the presumption of employment status for digital delivery platform employees (“riders”) and requires companies to inform employee representatives about the algorithms or AI systems that affect working conditions.
  • Law 10/2021 of July 9 on Remote Work provides the definitive legal framework for teleworking, regulating aspects such as voluntariness, compensation for related expenses, digital disconnection, and occupational risk prevention for employees working remotely.
  • Royal Decree-Law 32/2021 of December 28 has substantially modified temporary employment contracting and strengthened internal flexibility mechanisms (ERTE), fostering job stability and enabling companies to better adapt to fluctuations in demand.
  • Law 2/2023 of 20 February regulating the protection of persons who report regulatory infringements and the fight against corruption.
  • Law 4/2023 of February 28 for the real and effective equality of trans people and for the guarantee of the rights of LGTBI people.
Any questions

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