The Spanish labor market has specific characteristics and limitations that are important for employers, such as limited opportunities for temporary contracts, maximum overtime and, above all, many collective bargaining agreements.

OTIS Legal Group is ready to help you navigate this complex matter so that your company can operate successfully in Spain.

Spain favors permanent contracts over temporary contracts

[With the backfire effect of high unemployment]

In Spain, temporary employment contracts are heavily regulated and have strict limits. The default employment agreement is an indefinite, or permanent, contract. Temporary contracts are only permitted in specific circumstances.

Generally, the probationary period for permanent contracts in Spain can be slightly longer than in other countries.

In line with Spanish bureaucracy, the use of temporary contracts must be meticulously documented, including a specific reason for the temporary nature of the contract, which is subject to government review. This is designed to protect employees but can lead to cautious hiring policies.

Consequently, unemployment in Spain remains among the highest in Europe.

Even seasonal contracts are fixed

During peak seasons, such as summer, many hospitality workers are on seasonal contracts. However, a seasonal contract in Spain is essentially a permanent contract that is paused during certain months of the year. Once the season resumes, the employer is obligated to call the employee back to work.

Failure to do so is considered a dismissal, subject to the associated legal compensations.

Questions about a temporary or seasonal contract? We are happy to help.

And also no overtime (at least, not too much)

In Spain, employers must maintain daily records of working hours. Digital solutions are available to facilitate this process, but the records must be accurate and reflect the actual working hours. Non-compliance can result in fines from the Labor Inspectorate.

Additionally, the number of overtime hours is legally capped at 80 hours per year.

Spain, the land of collective bargaining agreements

Spain mandates collective bargaining agreements for various sectors, with each province averaging over a hundred agreements. Spain has 53 provinces, resulting in thousands of collective bargaining agreements in total.

These agreements typically provide additional regulations on matters such as overtime compensation, which may be paid in time or money.

Employees in Spain are heavily protected, and while this may be seen as a hindrance to employment, it is essential for employers to adhere strictly to these regulations.

Want to know how this is regulated for your company and industry? Let us know and contact us without obligation.

OTIS is happy to help you with this

Thousands of international companies successfully operate in Spain, and those with robust legal guidance are better equipped to handle these challenges.

With OTIS, we do not want to create barriers but rather remove them.

With OTIS, we have experience in both “ordinary” employment contracts and severance cases, complex contracts and severance cases for and with CEOs, as well as large collective dismissals.

Take advantage of our experience and contact us without obligation.