- Overview: Spain
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global HR Compliance in Spain
If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Spain Guide below will help you understand the nuances of labor legislation in the country.
There are two main reasons for companies hiring foreign workforce:
- Expanding into foreign markets to sell company product or products there. In this case, companies hire sales representatives who would exclusively represent their product in the target market and sell it to their local client base.
- Hiring the right foreign talent with a unique expertise, often related to IT sphere that cannot be found in the home country or that costs less compared to local specialist with similar skills.
After you have found the right candidate, the question is how to hire and provide compensation to this person so you as a business remain 100% compliant when working with global workforce. Another thing to consider is whether you want to keep the talent long-term and how you can do that.
If you need to hire foreign workforce in Spain so you can expand there, then our Global Employer of Record solution may be of help. We help you legally hire and reward your foreign workforce by making them employees via a global employment outsourcing service. This is simple as employ your in-house workforce with the only difference that workers can live anywhere in the world and Acumen International would be their legal employer on your behalf. This means we would bear all employment risks, not you. Also, we manage bonuses, vacations, sick leave and can rent the office and a car for your foreign sales representatives if that is what you need.
With our solution, you can test new foreign markets before deciding whether you are going to get established there. You gain flexibility and expand with reduced costs, and easily withdraw from the unattractive countries.
We are experts in global workforce employment in Spain, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Spain.
Hiring and Firing Workforce in Spain Guide
Sure! the hassles with global expansion can make even the most ambitious to resort to thinking that their dreams of being one of the global players in Spain is no more than a pipe dream. But here’s the good news for you, Acumen International, a global express employer of record provider has designed a solution that will help take these hassles out for you.
Be it as it may, to succeed in doing business in Spain, it is of fundamental important that you should know and understand the make-ups of its business environment, including its values and culture as that will help you avail yourself of the numerous opportunities and benefits that are readily available when doing business in Spain. Here are some helpful hints about doing business in Spain.
# Employment Contracts
Employment contracts are mostly done in writing, although having an oral contract is still acceptable. After a contract has been negotiated, a copy of it is normally sent to the state employment office for stamping before it can be given to the employee. Contracts are always drawn up in the national language and if necessary in any other choice language.
# Statutory employment rights
# Hours of work
The type of occupation and the employment collective agreement have a lot of bearings on the number of hours an employee can worked per day/week. The licitly approved working hours a day is 9 hours at the most and during the working week, the maximum hours an employee can work is limited to 40 hours. Also, during each daily working hours, an employee reserves the right to get some time off (usually between 2 and 4 pm) for lunch. For every 24 consecutive hours, an employee has the right to an undisturbed rest of at least 12 hours, and at least 36 hours for every 168 consecutive hours.
# Probation period
Probation is not always a requisite for an employment. Employers only allow for a probationary period if they deem it necessary for the job. In this case, the employer is obligated to put the employee on probation for a period not more than 6 months for technicians and 2 months for other employees. The terms of probation must be provided in writing.
# Annual leave
Beside the 14 days’ public holidays in Spain, all employees are entitled to at least 30 days annual paid leave. Under the Spanish labor law, these vacations should neither be renounced nor compensated for financially if not used up. The specific time to take an annual leave varies from organization to organization and is sometimes determined by either of the employment parties or both parties.
# Parental leave
In general, maternity leave entitlement with all its benefits are not unconditional. To be eligible for these benefits, it is expected that the employee should have registered with and contributed to the social security office for a minimum period of 180 days during the last seven years before her childbirth or at least 360 days all through her employment life. Pregnant employees are entitled to 16 weeks’ maternity leave, 6 weeks of which should be used after childbirth. Also, before and after giving birth, the employee has the right to take some time off during working hours for antenatal checks and breastfeeding.
Fathers are also entitled to a parental leave that usually last for 13 days, counting from 2 days before the child is born or adopted.
# Sick leave
Employees who by virtue of accident or illness are not able to continue with their gainful employment are entitled to up to 18 months’ sick leave and about 60% to 75% of their salary as a sick benefit. Sickness benefit is most of the time paid by the employer and later reimbursed by the social security administration. Sick leave cannot be extended further than 18 months.
Unless otherwise stated by the employment collective agreement, the number hours of an employee can work overtime cannot exceed 80 hours in a whole calendar year. Every overtime is compensated pecuniary or in time.
# Minimum salary
The minimum legal monthly wage in Spain in 2018 is € 858.6 paid ones a month and always after the necessary tax deductions.
# Contract termination
An employer can afford to forego the formalities necessary for a valid contract termination if the termination is collectively done and of course due to justifiable reasons. He will only be required to indemnify the employee(s) with 20 days of their salary for each year of service up to 12-months salary. An employer can unilaterally end an employment contract if the employee can no longer fulfill the stipulatory obligations of the contract or on the basis of serious misconduct. In this case, the employer is propelled by law to notify the employee in writing about the reason(s) for his/her dismissal and the intended date of dismissal prior to the termination date. If an employer can produce evidence to show that there is disciplinary reason/gross misconduct to terminate the employee’s contract, no statutory payments apply and no period of notice is to be served.
A dismissed employee has the right to report the employer to the employment tribunal if he/she fills he/she is unfairly dismissed. If the tribunal dismisses the employee’s claim of unfair dismissal, the employer can go ahead with the termination with no obligation to compensate the employee. If not, he will be required to either retreat from his/her plan of terminating the contract or compensate him/her in cash in lieu. The compensation for contract termination usually amounts to the 33 days of the employee’s salary for each year of service up to his/her 24-monthly salary.