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Employment contracts and policies in Spain
Contract terms in Spain
Fixed-term contracts in Spain
Contract extensions in Spain
Working hours in Spain
Remote work in Spain
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In Spain, an employment contract is known as a ‘contrato de trabajo.’ These are crucial documents that outline the duties, obligations, and remuneration of an employee’s role, as well as their rights and entitlements. There are various types of employment contracts you could choose to offer your employees in Spain, including permanent (open-ended) employment contracts, temporary contracts, and training contracts.
Technically, an employment contract can be a verbal agreement in Spain. However, written contracts are standard practice to avoid ambiguity and ensure both parties understand their rights and responsibilities.
Also, employers in Spain are required to lodge a ‘basic copy’ (copia básica) with the Employment Office for employment lasting longer than four weeks. This is a document containing the most important terms and conditions of employment, which must be written in Spanish. For certain types of work contracts in Spain, such as seasonal employment agreements, employers have to base their contacts on an official employment contract template.
Employers should be aware of the intricacies of employment contracts in Spain before they try to hire Spanish employees. A misunderstanding or ignorance of the rules could cause damage to your company or leave your employees without their statutory entitlements. In this guide, we’ll take you through everything you need to know about employment contracts in Spain, including the different types of employment contracts available, the rules surrounding fixed-term contracts, and the mandatory and optional terms to include in your employment contracts.
An employment contract is simply an agreement between two parties, in which one party (the employee) agrees to perform certain services for the other party (the employer) in exchange for remuneration (wages). Like in all countries, there are specific rules surrounding work contracts in Spain, which employers need to be aware of.
As an employer in Spain, it’s important to understand the different options available to you when you want to hire an employee. Currently, Spain recognises four main types of work contracts:
Probationary periods are often written into work contracts in Spain to allow employers to assess an employee’s suitability for a role. The duration of the probationary period depends on the terms of the collective bargaining agreement (CBA) that applies. If there is no CBA in place or it doesn’t specify the duration, the statutory duration is:
Probationary periods can never exceed six months.
Many companies in Spain have policies in place that determine how they handle different situations. Some policies are obligatory under Spanish employment law. For example, every business in Spain must have the following work policies in place if they want to hire employees:
Other policies are not mandatory, but nonetheless help businesses to keep their operations smooth and compliant. For example:
Employers in Spain are free to negotiate the terms and conditions of employment with each employee. However, employees are guaranteed certain minimum rights under Spanish employment law and any collective bargaining agreement that applies to them. Employment contracts can’t provide less generous terms than these mandatory minimums.
There are certain things that you must include in your employment contracts if you want to hire an employee in Spain. For example, an employment contract must include:
You can also choose to include additional terms according to the needs of your business. For example, you could include a non-compete clause, information about gardener’s leave, or an intellectual property clause. However, the terms of your employment contracts can’t be any less favourable than the employee’s statutory rights or the terms of any collective agreement that applies.
There are certain terms that are implied as part of any employment contract in Spain, even if they’re not explicitly stated. These include the employee’s right to receive at least the minimum wage and at least the statutory minimum benefits they’re entitled to by law.
Fixed-term or temporary contracts are designed to help employers meet short-term employment needs without committing to hiring an employee on a permanent contract. In December 2021, the Spanish government passed legislation concerning the use of fixed-term contracts in Spain. Employers are encouraged to favour indefinite contracts, and can only use fixed-term contracts in specific circumstances.
As of March 2022, fixed-term contracts in Spain are only permissible in three scenarios:
Collective bargaining agreements may set additional rules for when fixed-term contracts may be used. For example, they might stipulate the additional workload that would count as a reason to employ workers on fixed-term contracts, and the maximum percentage of the organisation’s workforce that can be employed on fixed-term contracts for this reason.
Fixed-term contracts in Spain must always be in writing and should specify the reason why a fixed-term contract is being used. If the contract doesn’t specify a reason or the reason isn’t compatible with the law, the contract could be considered a permanent contract.
The ‘fixed-discontinuous’ contract (contrato fijo discontinuo) is a different type of employment contract in Spain. It’s used to engage workers who are needed for intermittent or cyclical work at separate time intervals. An example is seasonal workers who are needed on a repeated and foreseeable basis each summer, but not needed the rest of the year.
The only other types of fixed-term contracts that are allowed in Spain are training and apprenticeship contracts and internship contracts. Because these contracts are designed to help employees learn while working, they are temporary in nature. An internship contract may last from six months to one year and is renewable one time if the first contract is shorter than a year. A trainee or apprenticeship contract can last from three months to two years.
As we’ve said, the situations when employers can hire fixed-term employees in Spain are fairly limited. Generally, fixed-term contracts to cover a temporary increase in workload are limited to six months within a 12-month period. If a fixed-term contract is to cover an employee who is temporarily away from work (for example, because they are on maternity leave), the contract can run until they return.
It’s generally possible to renew or extend a fixed-term contract in Spain, although the exact rules depend on the type of contract and the collective labour agreement that applies. For ordinary fixed-term contracts, the maximum duration is usually 24 months within a 36-month period.
Internship or work experience contracts are generally also renewable in Spain, as long as the initial contract is shorter than one year, and the employee hasn’t yet obtained their Professional Certificate. Training and apprenticeship contracts can’t be renewed.
According to the Spanish Workers’ Statute (Estatuto de los Trabajadores), employees in Spain who have been engaged on a fixed-term contract for longer than 24 months within a 36-month period acquire the status of permanent employees. This is the case if the employee has been engaged on continuous fixed-term contracts or interrupted contracts totalling more than 24 months.
The standard working week in Spain can’t be more than 40 hours per week, which amounts to nine hours a day including an hour for lunch. The standard working week is Monday–Friday. As of 2025, the maximum working hours in Spain will change to 37.5 hours per week thanks to a government initiative.
According to a 2023 study, people in Spain work an average of 36.5 hours per week, which is just six minutes more than the average across the EU. This figure includes both full-time and part-time workers but only counts the hours they worked in their ‘main’ job.
In Spain, any hours worked beyond the maximum of 40 hours a week count as overtime. Employers must compensate their employees for working overtime, following the rules set out in the relevant collective labour agreement or employment contract. The Spanish labour code prohibits employees from working more than 80 hours of overtime in a single year.
In November 2023, the new Spanish government announced a plan to reduce the standard working week in Spain to 37.5 hours by 2025. From this point, overtime will have to be paid for any hours worked over the 37.5-hour limit.
Students who are in Spain on a student visa can only work a maximum of 30 hours per week. They don’t have to work in a job related to their field of study, but their job can’t interfere with their studies since that is the primary reason they are in Spain. A part-time job also can’t be a student’s primary source of income while they are in Spain on a student visa.
As in many places, remote work in Spain has become a lot more common over the past few years. In 2020, the Spanish government introduced a new law to regulate remote working, after the COVID-19 pandemic led to a surge in remote employment. This law is meant to ensure employees’ rights are protected even when they are working from home.
The first major change introduced by the new remote work law is that employers and employees have to sign a remote work agreement for employees to work remotely. The employee must send this agreement to their representatives, who have to file a copy with the Labour Office.
There are certain compulsory clauses that have to be included in a remote work agreement, including:
The remote working law also stipulates that employers have to reimburse or otherwise compensate employees for expenses they incur by working from home. For example, employees may have to spend more on utilities if they are at home all day instead of working on-site. The exact details of how the employee will be compensated should be set out in their individual remote working agreement. For example, some employers choose to provide a monthly remote working allowance to cover any costs.
Employers in Spain have the right to monitor their employees, as long as this surveillance complies with data protection and privacy laws. However, they have to tell the employee how they plan to do this and detail it in the remote working agreement.
The remote working law also provides for employees’ right to ‘disconnect’ after their working day. Employers can choose how to handle this, but best practices include limiting the use of work communication outside of the employee’s normal working hours.
Employers have a responsibility to safeguard their employees’ health and safety, even when they’re working from home. Under Spain’s remote working law, employers have to carry out a risk assessment of the employee’s working environment. This should identify any possible risks to the employees’ health and safety (including mental health). Employers should then put in place policies and procedures to mitigate these risks as much as possible.
Because of the rise in remote work around the world, many countries have introduced remote work visas, which allow employees or freelancers to live and work in the country for a limited period without being subject to the usual immigration requirements. These are sometimes called ‘digital nomad visas’.
In Spain, the remote work visa requirements include either an undergraduate or postgraduate degree or three years of experience in their field. Employees can only get the digital nomad visa if their employer is located outside of the Spanish national territory.
That means an employee could use the digital nomad visa to spend time working remotely in Spain for a UK company (for example), but not to work for a Spanish company, even if they work remotely. Freelancers can work for Spanish clients as long as they don’t make up more than 20% of their annual income.
Like all countries, Spain has its own rules and regulations when it comes to employment contracts — and non-compliance could land your company in hot water.
Thankfully, our team is experienced in drawing up tailored, compliant contracts in Spain (and more than 100 countries worldwide). That means that, when you work with us, you won’t need to waste time worrying about whether you’ve got it right. Instead, you can focus on what matters: your business.
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
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