There are mainly two types of contracts in the Spain.

A fixed-term employment contract in Spain is a temporary employment agreement with a predetermined end date. They are often used for specific projects, seasonal work, or to fill in for absent employees.

A fixed-term employment contract will automatically convert into an open-ended(permanent) employment contract if either the following occurs:

• A chain of temporary employment contract covers 12 months or more.
• A chain of two fixed-term employment contracts is continued.

Permanent Contract: The contract is concluded for indefinite period. Permanent employment contracts are the most common type of employment agreement in Spain. They establish an indefinite employment relationship, meaning there's no predetermined end date. This type of contract offers stability and security for both employers and employees.

• Indefinite Duration: There is no fixed end date to the contract.
• Termination: Either the employer or employee can terminate the contract, subject to certain conditions and notice periods.
• Notice Periods: The notice period required for termination depends on the employee's length of service and other factors.
• Just Cause: In general, an employer can terminate a permanent contract without notice if there is a "just cause," such as serious misconduct or incapacity.
• Unfair Dismissal: Spanish law protects employees against unfair dismissal. If an employee believes they were dismissed unfairly, they can file a claim with the labor court.

In both types of the contract mentioned above, the following points should be specified in the employment agreement.

• The parties' names and addresses, the location of the work to be done, the position, and a job description.
• The date of hiring.
• If the job contract is for a set amount of time, the time frame.
• The annual leave entitlements or the formula used to determine the annual leave allowance.
• The length of the notice periods that must be observed by the parties or how these periods are determined.
• The salary and the frequency of payments.
• The normal number of hours worked each day or each week.
• The collective bargaining agreement, if any.

• Paid Time Off: Employees are entitled to a minimum of 22 paid vacation days per year for a standard 40-hour workweek.
• Sick Leave:
  • Employees are entitled to paid sick leave after 3 days of illness.
  • After the 4th day, they receive 60% of their salary, paid by the employer for up to 16 days.
  • After 16 days, employees are entitled to 75% of their salary, paid by the Social Security system for up to 365 days.
  • In cases of extended illness, benefits may be extended for an additional 180 days.
• Healthcare: Employees contribute to Spain's universal healthcare system through payroll taxes, covering most medical expenses.
• Pensions: Employees and employers contribute to the mandatory pension system. Pension amounts depend on earnings and length of service.
• Unemployment Benefits: Employees who lose their job may be eligible for unemployment benefits, with the amount and duration based on previous earnings and length of service.
• Disability Benefits: Employees who become disabled may be eligible for temporary or permanent disability benefits, depending on the nature of the disability.
• Maternity/Paternity Leave: Employees are entitled to paid maternity/paternity leave to care for a newborn child

Public Holidays:

Some regions in Spain may have additional public holidays specific to their area.
The dates for Good Friday and Easter Monday can vary each year depending on the lunar calendar.

Annual Leaves:

The minimum number of paid annual leave days in Spain is 22 days per year for employees working a standard 40-hour workweek. However, the actual number of days can vary depending on:

• Length of service: Employees with longer service may be entitled to more annual leave.
• Collective bargaining agreements: Industry-specific agreements may provide for additional annual leave days.
• In the case of interim commencement or termination of the employment, the number of holidays is determined pro rata with the number of months the employee is determined to have been employed.
• Holidays should be used during the contract period.
• A maximum of 5 holidays can be transferred to the next year.
• Not taken holidays will expire 6 months after the year they have been built up.

Sick Leaves:

Employees in Spain are generally entitled to paid sick leave when they are unable to work due to illness or injury. The specific rules and regulations governing sick leave can vary depending on the employee's circumstances, industry, and any applicable collective bargaining agreements.

• In Spain, employees are entitled to sick leave, with pay after 3 days of illness.
• After the 4th day of sick leave, employees are entitled to 60% of their normal wages, paid by the employer for up to 16 days.
• After this period, the benefit increases to 75% of wages and these payments are covered by the Spanish social security system.
• In cases of extended illness, employees can receive benefits for up to 365 days, with a possible extension of an additional 180 days.
• The social security office directly pays these extended benefits, often supplemented by the employer to match the employee's regular salary. This approach reflects Spain's commitment to ensuring financial support for employees during health-related absences.

Maternity Leave:

Maternity leave is a period of time granted to female employees to allow them to rest and recover after giving birth, and to care for their newborn child. In Spain, maternity leave is a legal right for all female employees

• Maternity leave in Spain typically consists of two main periods:
• Pre-natal leave: This is taken before the birth of the child and allows the mother to prepare for the arrival of her baby.
• Post-natal leave: This is taken after the birth of the child and allows the mother to recover and care for her newborn.
• Duration:
  • Pre-natal leave: The duration of pre-natal leave in Spain is generally 6 weeks.
  • Post-natal leave: The duration of post-natal leave is generally 16 weeks.
• Pay:
  • Employer: During the first 16 weeks of maternity leave, employees are typically paid by their employer. This payment is usually at least 100% of their regular salary.
  • Social Security: After the initial 16 weeks, employees may be eligible for maternity benefits from the Spanish social security system. These benefits are typically paid at a reduced rate compared to the employer-provided pay during the initial period.
• Flexibility:
  • Leave can be adjusted in special cases, such as multiple births, where an additional 2 weeks are granted for each extra child.
  • The first 6 weeks are mandatory post-birth, while the remaining leave can be flexible.

Paternity Leave:

Paternity leave in Spain is part of the Birth and Care of a Minor (Nacimiento y Cuidado de Menor) benefit, which guarantees equal family leave for both mothers and fathers.

• Length of Leave: 16 weeks of fully paid leave.
  • The first 6 weeks must be taken immediately following the birth, adoption, or foster placement.
  • The remaining 10 weeks can be taken flexibly, in separate blocks, within the child’s first year.
• Extensions:
  • Additional 2 weeks for each additional child in case of multiple births or adoptions.
  • Extra 2 weeks if the child is born with a disability.

Leave Extensions for Special Cases:

• Multiple Births or Adoptions:
  • Employees are entitled to an additional 2 weeks of leave for each additional child in cases of multiple births, adoptions, or foster placements.
• Child with a Disability:
  • If the child is born with a disability, parents are granted an extra 2 weeks of paid leave.
• Unemployed Workers:
  • If receiving unemployment benefits, paternity or maternity leave payments will temporarily replace unemployment benefits, and the unemployment benefits will resume once the parental leave ends.
• Flexibility in Taking Leave:
  • While the first 6 weeks must be taken immediately after the birth, the remaining 10 weeks can be split into separate blocks or taken part-time within the first year of the child’s life.

Online Application (with Digital Certificate or Cl@ve Account)::

• Log in to the Tu Seguridad Social portal using your digital certificate or Cl@ve credentials.
• Complete the application form and upload required documents.
• Submit the application online and track the status via the portal.

Online Application (without Digital Certificate):

• Use the special form provided on the Seguridad Social
• Fill in your personal details and attach the required documents.
• Submit the form online.

Mail-in Application:

• Download the paternity leave form from the Seguridad Social
• Complete the form and mail it to your nearest INSS office, along with the required documents.

In-Person Application:

• Schedule an appointment at your local Social Security Information and Service Center (CAISS).
• Submit the completed form and documents during the appointment.

Required Documents:

• Proof of identity (DNI, passport, or NIE).
• Company certificate (for employed workers).
• Family Book (Libro de Familia) or child’s birth certificate.
• Social Security contribution history.

Eligibility for paternity and maternity leave in Spain is based on various factors, including employment status, Social Security contributions, and specific family circumstances.

• Eligibility for Full-time and Part-time Employees:
  • Must have contributed to Social Security for at least 180 days in the last 7 years or 360 days over their entire working life.
• Eligibility for Freelancers (Self-Employed):
  • Freelancers are eligible based on their Social Security contributions from the last 6 months.
• Eligibility for Expats and Remote Workers:
  • Must be registered with Spain’s Social Security system to qualify, regardless of residency status.
• Eligibility for Same-Sex Couples:
  • Both parents are entitled to parental leave if the child is adopted or fostered.
• Special Cases:
  • Multiple Births/Adoptions: Additional 2 weeks per child.
  • Unemployed Workers: Paternity leave payments replace unemployment benefits during the leave period and resume afterward.

• Incomplete or Missing Documents: Ensure that all required documents are submitted, including:
  • Proof of identity (DNI, passport, or NIE).
  • Company certificate confirming the start of the leave (for employed persons).
  • Family Book or child’s birth certificate.
• Incorrect Information: Double-check the application details to ensure:
  • Personal information matches the records with Seguridad Social.
  • Leave dates are correct and align with the company certificate.
• Missing Contribution Requirements: Ensure you meet the required contribution periods:
  • 180 days in the last 7 years or 360 total for employed workers.
  • Freelancers should verify contributions over the last 6 months.
• Delaying the Application: Submit the application as soon as possible after the child’s birth or adoption.
• Failure to Follow Up: Track your application online or contact the Social Security office if you don’t receive a response within the expected timeframe.

Probation periods are common in both fixed-term and open-ended employment contracts in Spain. They allow employers to assess a new employee's suitability for the role before offering a permanent or long-term position.

• Open-ended contracts (permanent contracts): The maximum probation period is 6 months.
• Fixed-term contracts:
• Contracts lasting six months or less: No probation period is allowed.
• Contracts lasting more than six months but less than two years: The maximum probation period is one month.

• The probation period must be agreed upon in writing in the employment agreement. A verbal agreement for a probationary period is not valid.
• During the probation period, both the employer and the employee can terminate the contract without notice or reason. However, termination cannot be discriminatory.

The notice period required for terminating an employment contract in Spain depends on the type of contract (fixed-term or open-ended) and the employee's length of service.

• Notice Period: The notice period for open-ended contracts increases with the employee's length of service.
• Minimum Notice: The minimum notice period is generally:
• 1 month for the first 6 months of service
• 2 months for 12 months of service
• 3 months for 12 to 24 months of service
• 6 months for 24 months or more of service
• Notice period in case of fixed term contracts is usually one month for the duration of 6 month or longer. In case the contract duration is less than 6 months, no notice period is applicable.
• The notice period starts on the first day of the following month after the termination notice is given (in writing).
• Failure to give proper notice: If either party fails to provide the required notice period, they may be liable to pay compensation to the other party.

Severance pay is a form of compensation that an employee may receive upon termination of their employment contract. In Spain, the rules regarding severance pay can vary depending on the circumstances of the termination and the applicable laws and regulations.

• Just Cause: If an employee is terminated for a "just cause" (e.g., serious misconduct), they may not be entitled to severance pay.
• Unfair Dismissal: If an employee is dismissed unfairly, they may be entitled to compensation, which can include severance pay.
• Notice Period: In some cases, the employee may be entitled to severance pay in lieu of the notice period required for termination.
• Length of Service: Generally, the longer an employee has been with the company, the higher the severance pay.
• Salary: The employee's salary level is often taken into account.
• Age: In some cases, the employee's age may be considered when calculating severance pay.

Overtime pay in Spain is generally regulated by national labor laws and collective bargaining agreements. Here are some key points to consider:

• Overtime Rate: Employees are typically entitled to a higher rate of pay for working overtime hours. This rate is often 125% or 150% of their regular hourly rate.
• Maximum Overtime: There is a limit on the maximum number of overtime hours that an employee can work per week or per month.
• Employees can voluntarily work up to 9 hours per day and up to 80 hours of overtime per year. Voluntary overtime is paid.
• Compensatory Time Off: In some cases, employees may be able to choose to take compensatory time off instead of overtime pay.

Work injuries in Spain are covered under the country's social security system. If an employee suffers a work injury, they are generally entitled to receive medical treatment, rehabilitation, and financial compensation.

• Notification: Employees must report work injuries to their employer as soon as possible.
• Medical Treatment: The employer is typically responsible for arranging medical treatment for the injured employee.
• Rehabilitation: If necessary, the injured employee may be entitled to rehabilitation services to help them recover and return to work.
• Financial Compensation: In addition to medical treatment and rehabilitation, injured employees may be entitled to financial compensation, including:
  • Temporary disability benefits: Employees receive financial compensation during the recovery period, typically 75% of their wages.
  • Permanent disability benefits: If the injury results in permanent disability, the employee may be entitled to a lump sum payment or ongoing benefits.
  • Occupational disease benefits: If the injury is caused by an occupational disease, the employee may be eligible for specific benefits.

Step 1: Cooperation Agreement/MSA

• We will share Intake Sheet to collect company information.
• Based on the data provided in intake sheet, we will prepare Cooperation Agreement/MSA for review and signature.

Step 2: Assignment Specification (Purchase Order)

• We will prepare Assignment Specification based on the candidate information provided in the Intake Sheet for review and signature.

Step 3: Employment Agreement/Offer Letter

• Once the AS is signed, we will prepare draft Employment Agreement for review.
• After the approval, we will share the final Employment Agreement to the candidate for review and signature.
• We will share the final copy of the signed EA to all the parties.

Step 4: Onboarding process
We will share the following documents with the candidates for signature

• Personal Questionnaire Form
• Bank Account details form (for payment purposes)
• Medical examination form and certificate
• Health Insurance documents (Health ID Card)

Once the documents are received, we will register the employee with authorities.

Step 5: Immigration Process (If any)

• Our Finance team will share the invoice for immigration process if required.
• Once the immigration invoice is cleared, we will start the onboarding process.

• Intake Sheet (Onboarding Sheet)
• Passport Copy
• Residence permit/ Work permit (if any)
• Updated CV
• Higher Degree Certificates.
• Social Security number (if available)
• DNI/NIE Number
• Payroll Tax form
• Bank Account Form
• Medical examination opt in/out

For global HR teams managing employees in Spain, understanding and complying with the country’s family leave laws is crucial. Here are key strategic considerations to ensure your policies remain compliant and competitive.

Compliance with Local Laws:

• HR teams must ensure company policies comply with Spain’s family leave laws, especially the Birth and Care of a Minor
• Staying compliant helps avoid legal risks and enhances the company's reputation as a family-friendly employer.

Competitive Advantage:

• Spain’s generous family leave policies can serve as a key selling point for attracting top talent, especially in industries that value work-life balance.
• Offering flexible leave policies can improve employee retention and satisfaction.

Harmonizing Leave Policies Globally:

• Companies with international teams should develop consistent leave policies while ensuring compliance with local laws.
• Provide clear communication and support to expats and remote workers, ensuring they understand their rights and the procedures to apply for leave.

Continuous Review of Policies:

• Regularly review and update company policies to align with both Spanish laws and global HR standards.
• Consult legal experts or industry resources like SHRM to stay informed on best practices.

Offboarding process can be classified into 4 categories.

1. Termination of a fixed term contract without extension
2. Pre mature termination by mutual consent
3. Premature termination by the employee
4. Premature termination by the employer

1. Termination of a fixed term contract without extension

• Generally, fixed-term contracts end automatically upon the expiry date or completion of the specific ask as outlined in the contract.
• If the employer decides not to extend a fixed-term contract of at least 6 months, employers are legally required to inform this decision at least one month before the end date.
• Failing to do so might entitle you to one month's salary as compensation.
• If the employee earned any holiday pay during their employment but did not take all their entitled vacation days, they are compensated financially for the unused days.

2. Premature termination based on mutual consent

• This happens because of resignation or both the parties decide to terminate the contract mutually. In any case the standard notice period should be respected.
• Termination Agreement: This is a written agreement employee and employer sign, formally ending the contract before its pre-determined date.
• No Fault Necessary: Unlike some situations, there's no requirement for fault on either side to initiate a termination by mutual consent.
• Severance Pay: Employee might be entitled to a severance package that could be higher than the transition payment.
• Notice Period: The agreement can waive or modify the usual notice period
• Final pay should include salary for the period worked during the final pay cycle, along with any accrued but unused vacation pay.
• If the employee earned any holiday pay during their employment but did not take all their entitled vacation days, they are compensated financially for the unused days.

3. Premature termination by the employee

• An employee in Belgium can prematurely terminate their employment agreement, but there are important considerations and potential consequences to be aware of.
• Unlike some countries, Belgium has mandatory notice periods that both employers and employees must adhere to when terminating a contract. The notice period for an employee resigning depends on the duration of the employment.
• Constructive Dismissal: If the employer creates a hostile work environment or makes it impossible for the employee to continue their job, the employee may be able to claim constructive dismissal. In such cases, the employee may not be required to provide notice.

4. Premature termination by the employer

In Spain, there are strict rules around premature termination of a fixed-term or permanent employment agreement by the employer. Here's a breakdown of the situations:

Fixed-Term Contracts:

Premature termination of a fixed-term employment contract by the employer in Spain is generally allowed under certain conditions. However, the employer may be required to provide compensation to the employee if the termination is not justified.

• Just Cause: The employer must have a "just cause" for terminating the contract before its expiration date. This typically means a serious breach of contract by the employee or a legitimate business reason.
• Notice Period: Even if the employer has a just cause, they may still be required to provide a notice period to the employee. The specific notice period can vary depending on the contract's terms and the employee's length of service.
• Compensation: If the employer terminates the contract without just cause or without providing adequate notice, the employee may be entitled to compensation. This can include severance pay, back pay, and any other damages incurred.
• Severance Pay: When terminating a fixed-term employment contract in Spain, an employer must provide at least 15 days' advance notice in writing to the employee. The employee is entitled to severance pay, which is usually 20 days' salary for each year of service, up to a maximum of 12 months' salary. The severance pay must be provided at the same time as the written notice of dismissal.

Permanent Contracts:

Premature termination of a permanent employment contract by the employer in Spain is generally allowed under certain conditions. However, the employer must have just cause for the termination and may be required to provide notice to the employee.

• Just Cause: The employer must have a valid reason for terminating the contract, such as serious misconduct or incapacity.
• Notice Period: The required notice period for termination depends on the employee's length of service. Generally, the longer the employee has been with the company, the longer the notice period.
• Unfair Dismissal: If the employer terminates the contract without just cause or without providing adequate notice, the employee may be able to claim unfair dismissal.
• Compensation: In cases of unfair dismissal, the employee may be entitled to compensation, which can include severance pay, back pay, and reinstatement.
• Severance Pay: When terminating a fixed-term employment contract in Spain, an employer must provide at least 15 days' advance notice in writing to the employee. The employee is entitled to severance pay, which is usually 20 days' salary for each year of service, up to a maximum of 12 months' salary. The severance pay must be provided at the same time as the written notice of dismissal.