Considering the Labor Reform of February 12, 2012, we can affirm that one of the greatest novelties in contracts for hiring employees is the creation of the Permanent Employment Contract …
Despite various labor reforms in our country, the anticipated positive outcomes have not materialized. Unemployment figures for 2012 remain below expectations, and escalating financial pressures in the Eurozone and Spanish debt heighten uncertainty. The effectiveness of the new law remains to be seen, as we await its impact on meeting expectations.
Article 40 of the Workers’ Statute in Spain requires a valid justification, such as economic, technical, organizational, or production reasons, or contracts related to the business, for the geographical mobility of workers who were not hired explicitly for mobile workplaces or travel to a different workplace within the same company, involving a change of residence.
At the moment the movement of labour in our job market is becoming more frequent, the implication of which is the continual creation and extinction of labour agreements and contracts …
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.
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.
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.
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.
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.
The employment agreement for executive managers in Spain is governed by the provisions outlined in Royal Decree 1382/85 of August 1, which regulates the unique employment relationship of executive managers.
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