Regulation of temporary work agencies (ETT) in Spain
The new regulation of temporary employment agencies (ETT), in force since June 21, 2015, amends certain issues concerning ETTs with the aim of:
- Adapting its regulations in relation to the administrative authorization scheme for the development of the activity as a temporary employment agency
- Implementing electronic governance of all administrative procedures relating to ETTs. First, an adequate software application must be developed within the set nine month period.
ETTs can carry out placement agency tasks for the development of professional qualification training or consulting and human resource consulting, according to the specific regulations that are applicable to them.
Request for authorization to establish a temporary employment agency
A natural or legal person who wants to establish an ETT must obtain authorization from the competent labour authority, which will be:
- The competent body of the autonomous community where the agency’s workplace is located
- The Directorate General of the Ministry of Employment and Social Security, if at the time of the request the temporary employment agency has workplaces in two or more autonomous regions
- The government delegations of Ceuta or Mellila, if the agency has workplaces solely located in one of these cities
The application must be submitted to the e-mail that will be established for this purpose. This authorization is exclusive, is effective throughout the Spanish territory and is granted for an unlimited duration. The new regulation details all the administrative procedures to be followed, for both the application and termination of authorization.
Registering a temporary employment agency
The possibility of registering an ETT is one of the main developments of the regulation. The competent labour authority, simultaneously with the granting of administrative authorization, shall automatically register the agency electronically.
With the registration of the agency, ETTs have the legal obligation of providing financial security covering an amount equal to 10% of the total payroll recorded in the previous fiscal year. Under no circumstances may the amount be lower than 25 times the minimum wage in force at the time. This security will be liable for any debts of compensation, wages and social security.
The new regulation also regulates the formal requirements and contents of contracts, as well as the reporting obligations of temporary employment agencies, with respect to both the administration and the user company.
This article is not considered as legal advice