Labour Measures in Support of Approved Entrepreneurs in Spain

On September 28, 2013, the Spanish Legal Bulletin (BOE) published Law 14/2013, of September 27, to support entrepreneurs and internationalization (also known as the Entrepreneurs Support Act). Despite some delay in the Law’s approval, self-employed and small businesses had long waited for this Law. Objectives of the Law include supporting entrepreneurs and entrepreneurial activity; assisting in development, growth, and internationalization; and promoting an entrepreneurial culture and environment favourable to economic activity — both in the initial moments of starting the activity and in the subsequent development, growth, and internationalization. With these objectives, the Law introduces reforms that affect various sectors of the Spanish legal system (tax, labour, trade, bankruptcy, and administrative areas).

The Law’s approved measures include the following points:

  • Modifications in international mobility to enhance and encourage the arrival of investment (capital) and talent (qualified professionals) to Spain by eliminating obstacles and administrative complications while recognizing national-security requirements. To this effect, we emphasize that the visa of stay or residency for investors and entrepreneurs may last for up to one year. Other important points in this area include the Law’s reducing the amount of time for processing grants of visas and authorizations of residency; positive administrative silence for the authorization of residency; and the three-month duration of the prior relationship required for corporate transferees.
  • On the other hand, to avoid penalizing workers who in addition to contributing to the Spanish Social Security System must also contribute to another full-time regime, contributions to the Spanish Social Security System are reduced, thus promoting multiple activities of workers.
  • Lastly, the Law introduces changes in the legislation preventing work hazards, simplifying it for employers with up to 25 workers while substituting the requirement of a physical visiting book with an electronic one made available to the Spanish Inspector of Labour and Social Security.
  • The new changes in labour entered into force on September 29, 2013, the day after the publication of the Law in the BOE.

This article is not considered as legal advice

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