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.
Legal framework
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 2023 to 2026 includes the following:
- Royal Decree 1155/2024 of November 19, approving the Regulations of Organic Law 4/2000 of January 11 on the rights and freedoms of foreigners in Spain and their social integration. This change in immigration regulations reduces the time required for regularization based on ties to the country, facilitates direct access to employment for students, and relaxes the requirements for family reunification, among other changes.
- Organic Law 1/2025, of January 2, on measures regarding the efficiency of the Public Justice Service, which establishes significant changes regarding the submission of documentary and expert evidence, in judicial proceedings, and in the organization of the courts.
- Law 9/2025, of December 3, on Sustainable Mobility, which, among its main obligations, requires all companies with workplaces employing more than 200 employees (or 100 per shift) to implement a sustainable commuting plan within 24 months.
- Royal Decree 126/2026, of February 18, has set the minimum wage (SMI) for 2026, effective retroactively from January 1, at 1,221 euros per month in 14 payments (17,094 euros annually). The Government has announced its intention to ensure that the increase in the SMI takes effect through specific regulations that prevent mechanisms for offsetting and absorbing specific allowances for workers, although no regulatory text has been issued yet.
- Royal Decree-Law 9/2025 of July 29, extending maternity and paternity leave, and Royal Decree-Law 5/2023 of June 28, both introduce significant changes regarding paid leave. In addition, in December, an agreement was reached between the Ministry of Labour and trade unions to extend leave for the death of a family member to 10 working days, as well as to introduce a new leave of up to 15 days to accompany a family member receiving palliative care.
- Law 2/2025, of April 29, amending the consolidated text of the Workers’ Statute, approved by Royal Legislative Decree 2/2015, of October 23, regarding the termination of employment contracts due to permanent disability of workers, and the consolidated text of the General Social Security Law, approved by Royal Legislative Decree 8/2015 of October 30, regarding permanent disability, which represents a radical change in the declaration of permanent disability for employees. Previously, automatic termination of the contract was permitted; however, with the change introduced—in line with the shift in case law—the automatic nature of the termination is eliminated, and the company is required to explore, prior to termination, the possibility of making reasonable adjustments to the job or reassigning the employee to a compatible position.
