Employment aspects of foreign investment in Spain

To initiate procedures for opening a company or working in Spain, an investor planning to stay or work in the country must consider the provisions outlined in our Foreign Law concerning the establishment, continuation of residence, and the exercise of activities in Spain.

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Starting up a business in Spain, the Spanish agency contract

To circumvent temporary residency requirements for employees in Spain, foreign nationals starting a business may opt to enlist the services of local agents (Spanish individuals or companies) already possessing residency and employment authorization. These agents, familiar with the Spanish language, customs, and business practices, can play a crucial role during the company’s launch, leveraging their expertise to introduce the new venture to the region.

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Regulation of discrimination labor relations in Spain

The Spanish Constitution, Workers’ Statute, and European Directives prohibit discriminatory terminations based on characteristics such as age, incapacity, birth, race, origin, civil status, sex, religion, political opinion, sexual orientation, or any other personal or social condition.

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Employment termination processes in Spain

Spanish employment law differentiates between the suspension and termination of an employment contract. Suspension is a temporary interruption, such as when an employee takes temporary leave for family reasons. Termination signifies the permanent end of the employer-employee relationship, involving notice and compensation. While the termination processes for management personnel, regular employees, and agents differ under various laws, they share similarities.

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Employment-law issues when starting up a business in Spain

The information provided outlines key employment-law considerations for foreign nationals establishing small- to medium-sized businesses in Spain. In summary, it emphasizes the need for a clear understanding of the employer-employee relationship, the rights of employees, and the early decision on hiring employees or agents. Additionally, a prompt initiation of the immigration process is advised due to potential lengthy visa and residency waiting periods.

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