The existence of a working relationship is established through a contract. In Spain, the elements and clauses of the contract must clearly and unequivocally define all aspects of the working conditions.
Labour law is the set of rules and principles that regulate legal relations between employer and employee based on a voluntary, subordinate and remunerated supply of human work with the goal of guaranteeing the completion of the parties taking part in the professional relation.
When hiring employees, knowledge and analysis of the Spanish employment regulations provide an understanding of the contract types in force and the benefits of existing bonuses and reductions. Companies that intend to hire new employees must first verify which type of employment contract is the most beneficial and then confirm the available types of allowances related to social security.
In a limited liability company, which differs from a corporation, the company’s by-laws can establish any term of duration for the position of director, including the possibility of an appointment for an indefinite period of time.
The right to vacation days in Spain, created by a labour relationship, also exists during periods of sickness, accident, maternity or strike. Nonetheless, vacation days have an expiration date, which excuses an employer from economically compensating for the unused days.
The Workers’ Statute empowers an employer to adopt the supervision and control measures that are deemed appropriate in order to verify the fulfilment of the obligations and duties of its workers. However, this power is not absolute, and it is exactly how the Spanish courts understand it.
The latest Supreme Court’s sentences validate video surveillance evidence under certain circumstances and after fulfilling specific formal requirements, such as proportionality and notification to the employee, as a fair cause for disciplinary dismissal.
The post-contractual non-compete agreement is contemplated in Article 21.2 of the Spanish Workers’ Statute (Estatuto de los Trabajadores), and it is essential to preserve, among others, the experience, training, networking, etc. acquired by a worker during his or her employment in a company.
The reasons that can justify a disciplinary dismissal in Spain must be based on serious breach and negligence of the employee, for instance repeated and unjustified absence of attendance or punctuality at work, indiscipline or disobedience at work, the continuous and voluntary decline in the normal work performance or verbal or physical offenses.
The regulations on labour and employment in Spain require that all companies keep a daily record of the working hours and the overtime completed by workers. The detection of breaches in compliance with the regulations can result in economic fines for companies.
Companies in Spain that employ workers under the age of 30 years old may apply for a reduction of the company’s contribution to social security. This allowance will be from 75% to 100% depending on the number of workers and will be applicable for a period of one year, which may be extended for another year.