Spanish Employment Law: A Guide for Global Employers
What every global employer should know
1. Hiring in Spain: Why It’s Not Just HR, It’s Legal Strategy
Spain offers a rich talent pool, particularly in tech, digital services, and creative industries. But many international companies underestimate the complexity of Spanish employment law—until they’re hit with fines, disputes, or compliance issues.
Before you onboard your first hire in Spain, it’s essential to understand:
- Local labor contracts
- Mandatory benefits
- Termination procedures
- Social security and payroll obligations
Getting this wrong doesn’t just create legal risks—it can impact your brand, your cash flow, and your ability to scale.
2. Key Rules You Need to Know Before You Hire
Here are the core elements of Spanish employment law that every international employer must factor into their strategy:
Written Contracts Are Mandatory
All employees must have a written employment contract specifying the role, hours, compensation, and conditions. “Handshake” agreements or verbal hires are non-compliant.
Indefinite vs. Temporary Contracts
Spain favors indefinite contracts. Temporary contracts are tightly regulated, and misclassification is one of the most common legal traps for new employers.
Severance Obligations Are Real
Dismissals without cause can be expensive. Even with just cause, the process must follow legal protocols—otherwise, it could be classified as unfair dismissal.
Paid Holidays, Sick Leave, and Social Security
Employees are entitled to:
- 30 calendar days of paid vacation
- Full social security coverage
- Sick leave compensation
You’re also required to register the company with social security and maintain monthly contributions for each hire.
3. Hiring International Talent in Spain: Visa and Tax Strategy
If your new hire is a non-EU citizen, you’ll need to navigate:
- Work permits or the highly qualified worker visa
- Residency requirements
- International payroll and tax withholding
This requires aligning immigration, tax, and labor law, ideally with legal support from day one.
4. Alternatives to Employment: Freelancers, EORs, and Contractors
In some cases, you may not need to hire full-time employees immediately. Consider:
- Freelancers (autónomos): Flexible and low-risk, but only for clearly independent roles.
- Employer of Record (EOR): Useful if you want to test the Spanish market before setting up a company.
- Service contracts: For partnerships, not employment.
However, be careful—false self-employment (fake freelancers) is heavily monitored and penalized.
5. Building a Scalable, Compliant Hiring Framework
To hire effectively in Spain and scale without friction, smart companies:
- Use clear, compliant employment contracts
- Implement internal policies (e.g., remote work, digital disconnection, data protection)
- Structure payroll and benefits with local norms in mind
- Plan for long-term headcount strategy—not just immediate needs
The Bottom Line: Hiring in Spain Is a Legal Decision
Every hire you make shapes your company culture—but also your legal and financial exposure. International companies that treat hiring as a legal strategy (not just HR admin) gain a massive advantage.
Whether you’re hiring your first employee or scaling to a full team in Spain, the key is having legal alignment from the beginning.
Let’s Build Your Hiring Framework, the Right Way
At Legal Advisors Barcelona, we help international companies establish employment structures that protect their growth, ensure compliance, and align with long-term business goals.
Ready to hire in Spain? Let’s build a framework that gives you confidence, compliance, and competitive edge.