Personnel Services

Elaboration of Labor Contracts

Elaboration of Monthly Pay Slips

State Employment Registry (SEPE)

Registration with Social Security (TGSS)

Labor Risk Prevention Insurance

Attendance and Holiday Management

Legal Support Disputes and Inspections

Labour Environment

The labor environment in Spain has traditionally been characterized by long working hours, low wages and defective protection of worker’s rights. This has been changing dramatically though, as government has been implementing higher minimum wages, labor risk prevention and obligatory working hours registration, for example.

Labor inspections are frequent and tough, with high fines attached. Courts tend to judge in favor of workers so legal assistance is always advised. On the other hand, labor costs for companies have been reduced by lowering compensations for dismissal and allowing more flexibility regarding hiring and firing.

Working hours and holidays are quite different from surrounding European countries and will need to be considered when operating internationally. The business community is pushing for more alignment with Europe, but customs and lifestyle have proven difficult to change so far.

Labour Environment
Staff Selection

Staff Selection

Finding the right people for your business is key to your success. Therefore, to know where to look and to go through a thorough selection process is important.

For senior profiles, the traditional headhunter companies are still being used, but for administrative or middle management profiles the job market has shifted almost completely to the internet. Access to the right online recruitment platforms and social media are essential to contact with candidates, but if search criteria are not well defined, you might end up with hundreds CV’s to sift through.

Although some of the (many) recruitment platforms can be very efficient, the results need to be cross checked and screened with other information sources, aptitude and attitude tests, personal interviews and references. Just as we live in an era of fake news, it is also frequent to encounter fake candidates or qualifications.

Hiring and Firing

The cost of firing begins with the hiring. Spanish labor law gives much protection to employees, so employers must consider carefully the type of contract and the clauses to be included when hiring. This will have implications in terms of liability and compensation to be paid at termination.

Spanish employment contracts can be in writing or verbal, though the latter is very unusual. Contracts are to be sent to the Public State Employment Service within 10 days after coming into force. Not complying with this requirement can result in obligatory indefinite recruitment of the employee and fines up to €6.000. 

The employment relationship may be terminated by resignation by the employee, expiration of a defined term contract, objective dismissal initiated by the employer or a disciplinary dismissal action. The economic impact of each situation is different and can vary from 0 to 45 days of gross salary per year of employment.

Hiring and Firing


Once a person is employed, the employer must register the employee at the social security services, pay the corresponding employer’s fees and withhold the employee’s fees and taxes in their name. Compensation (salary) can be composed of primary and secondary benefits that are taxed differently and can be optimized accordingly.

All these concepts are calculated and specified monthly on a pay slip for each employee. The details of taxes and social security fees withheld are communicated to the corresponding authorities, so it is important that the pay slips are correctly calculated according to the latest legislation and collective labor agreements.

Finally, employing staff brings other obligations along like measures for eliminating labor risks, responsibility insurance and the obligation to keep a register of real working hours.

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