Hiring employees in Spain requires compliance with strict labor laws and employer obligations. Omnipresent’s Employer of Record (EOR) service ensures that businesses meet all employment, payroll, and benefits obligations in Spain.

Spanish employment law is heavily influenced by Collective Bargaining Agreements (CBAs)—official agreements negotiated between unions and employers (or employer associations) that set the working conditions for specific sectors.

CBAs are legally binding for all parties involved and apply at an industry level (e.g., chemical industry, consulting, construction) as well as at a territorial level (nationwide, regional, or company-specific).

At Omnipresent, our Spanish entity operates under the Consulting CBA, meaning that both we and our employees must adhere to the terms outlined in this agreement. Below, we have summarized the standard provisions for key areas.

There are no Employer or Employee contributions to state Health Insurance in Spain. The National Health System (Sistema Nacional de Salud - SNS) is financed by the government through general taxation revenue.

It is common to offer supplementary Health Insurance in Spain. This benefit is the most sought-after by employees. We are able to provide private health and dental insurance in Spain through our partner Alan.

The required employer and employee retirement contributions form part of the overall Social security contributions to the General Regime.

Omnipresent requires a written employment contract to outline the EOR terms and provide clarity for both employers and employees. Omnipresent ensures that all necessary key terms are included in the employment contracts we provide.

During the probation period, employers evaluate an employee's suitability for the role they have been hired for. It gives the employer an opportunity to assess their performance and determine if they are a good fit for the company. We believe that this process benefits both the employer and the employee.

Here are some key points to know about the probation period:

We provide optional clauses for customisation when adding an employee to our platform. This allows you to tailor certain contract aspects, such as unlimited time off or extra-legal sick days.

However, certain contract elements cannot be customised due to compliance risks or Omnipresent's policy. Examples include overtime, restrictive covenants, and stylistic changes. Please see here the full customisation policy in Spain.

The onboarding steps involved are: Platform Setup, Right-to-Work Check, Employment Contract, Benefits, and Payroll enrollment. This timeline does not include exceptions such as visas and medical background checks.

Employment contracts need to be signed 3 business days before the employee's start date.

For onboarding, we require the employee’s Número de Seguridad Social (SSN), Documento Nacional de Identidad (DNI/NIE), and Bank Account Certificate, Modelo 145, and Health and Safety Acknowledgment Document.

Omnipresent can sponsor visas for Spain notably via a 'highly qualified professional work and residence permit' if the prospective employee does not have a special prerequisite (e.g., an EU family member, or being in Spain on another permit - in these situations, please refer to Jobbatical).

There is a fast-track procedure designed for highly qualified employees ('PAC' or 'Profesional Altamente Cualificado'). The applicant must prove that the employee and the employer have met certain conditions (e.g., the employer must be a large company, wages must be above the average salary for the position). Foreign authorities are supposed to issue a visa (i.e., a PAC visa) within 45 days of the application.

Omnipresent performs right to work (RTW) checks on the employee.

As part of the onboarding legal requirements in Spain, it is mandatory for all employees to complete a Health and Safety training. This training is a 2-hour session designed to ensure compliance with workplace safety standards.

After the onboarding is completed, the employee will receive an email from our local partner so they can complete the training within the first 15 days of employment.

In Spain, employees have the legal right to receive annual medical examinations. At Omnipresent, we typically schedule these health checks around March/April.

Employers are required to offer these medical examinations, although it is voluntary for employees to participate. If an employee chooses to take part, there will be an additional cost, which will be reflected in the invoice

If the employee has previously worked for you, whether in another country or through another EOR provider, we can recognise their length of service. This recognition of seniority will need to be mentioned in the employment contract.

Spain offers a minimum of 30 calendar days (approximately 23 working days) paid annual leave. Annual leave is set out in the applicable collective bargaining agreement (CBA) and can often be more.

There is no annual leave carryover. Annual holiday time must be taken by employees in the same year it was given.

Employees in Spain are entitled to 16 weeks of maternity leave, paid by the Social Security.

Fathers in Spain are entitled to 16 weeks of paternity leave, paid by the Social Security.

Employees are entitled to paid sick leave for a maximum of 1 year, or in certain circumstances they may be eligible to apply for extended leave of up to 18 months. The employer makes the payments but will be reimbursed by Social Security.

It's crucial to know that Social Security will only cover the portion of payment for paid leave that is mandated by law. However, if there is a collective bargaining agreement in effect that specifies a higher percentage than the legal minimum, the employer will be responsible for covering the additional amount.

Spain currently has 14 mandatory public holidays. However, there can be more public holidays in Spain depending on the region and province. Below are some (but not all) of the Spanish public holidays:

The payroll cycle in Spain is monthly.

All employees on Spanish payroll are paid in 12 monthly instalments.

It is compulsory to pay two extra payments per year, one in July and one in December, however these two payments can be prorated into 12 monthly payments, as is the case with Omnipresent Spanish payroll.

Under the remote working regulations, employers are obligated to reimburse expenses related to remote work, including electricity, internet, and other relevant costs; this is the Remote Work Allowance (RWA).

For Omnipresent, the minimum RWA is 50 EUR per month. This allowance is in addition to the employee’s regular salary.

Note that to qualify as remote work, an employee must work from their home address for at least a day and a half. Exceptions apply for employees who travel frequently.

Omnipresent is unable to accept employees on an hourly wage.

Omnipresent is unable to process overtime for employees.

Minimum wage in Spain, applicable from January 2024, is EUR 1,611.40 per month.

An employee can work a maximum of 40 hours per week and 8 hours per day (Monday-Friday). As a general rule, the weekly working time is a maximum of 40 hours as set out by the relevant collective bargaining agreement (CBA).

During August, an intensive working hour schedule will be implemented, meaning that employees only need to work 36 hours per week.

The employer costs depend on a variety of employee variables. A guiding number is 31% of the employee salary. To get a more detailed estimate based on the employee salary use the OmniCalculator, or contact us for further information.

Employers are required by law to keep a record of each employee’s actual working hours per day. Omnipresent will provide the necessary tools and verify compliance. Time tracking should be done on a daily basis and records must be kept for 4 years in case of an audit. To see the full process of approving timesheets, please visit this guide.

There is a special tax regime (STR) that applies to individuals who receive Spanish tax residency as a result of their assignment or labor contract to the Spanish territory. This special tax regime is a beneficial regime where the individual is a tax resident in Spain but is taxed under the non-tax resident regulations.

Before proceeding with a termination (including verbal discussion with the employee about the risk of termination) you must first get in touch with Omnipresent. We will then provide guidance on next steps. You can read our full guidance here.

To initiate a termination, you need to submit a termination request through the OmniPlatform after which our relevant teams will assess the case and plan a compliant termination process.

We cannot process termination on the same day as requested.

It is very difficult to legally terminate an employee other than for gross misconduct. A formal process must be followed before a termination notice can be issued.

Except for disciplinary dismissals, the law requires that a party seeking to terminate an employment agreement must provide the other party a minimum of 15 days’ notice prior to termination.

Due to these regulatory changes we push for and advise to use indefinite-term contracts with probation periods or always try and terminate by mutual agreement.

In Spain, most forms of involuntary termination require severance pay.

Employers need to give minimum 15 working days' notice to employees when they are terminated. Employees also must give 15 working days’ notice (no more).

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