Important issues regarding Spanish labour law in a nutshell
Whether you own a large or a small business in Spain, it is important to have a number of things well organised in case something happens. In this article we will explain the most important things in an easy-to-understand way.
Spanish labour law is, to say the least, extremely regulated. And without any exception from the point of view – and therefore in the interest – of the employee. As an employer you need to take this into account to avoid (unpleasant) surprises.
In Spain applying CAO´s is mandatory. Every province has its own CAO for hundreds of sectors. Therefore, there are thousands of CAO´s. If, as a company, you do not apply the CAO properly, you will face a challenge. For example in case of dismissal, but also by applying the wrong probationary period in the employment contract, which can even lead to the termination can be annulled and a formal has to take place. Easily 6 months can go by, over which you would then also have to pay salary, taxes and social security contributions.
Dismissing multiple employees? Not without a lawyer!
Sometimes things go differently than expected. And ´´quickly ´´ organizing a reorganization or closure the company does turn out not to be that easy when collective dismissals take place. A collective dismissal is defined by the event that 10 employees are dismissed within a period of 3 months. Even when the dismissals are at different days, and therefore not at the same time. In theory it is possible that, as an employer, you could suddenly find yourself in this situation during a seemingly insignificant reorganisation. This leads bureaucracy and extra obligations which you do not want. Make sure that you handle this wisely. With the right assistance, a lot of time, money and energy can be saved.
Fixed contracts and no overtime
In Spain working with temporary employment contracts is subject to limits which are easily reached. Furthermore the amount of overtime also is limited, and employees must record their working hours daily. There are some digital options to make this easier, but of course the records should be correct and genuine.
Am I able to do business in Spain?
Reading the above, you almost start to wonder whether doing business in Spain is a good option? Of course it is! Thousands of Dutch companies are successfully doing business in Spain, and the ones having great legal guidance are less likely to face the previously mentioned challenges.
At OTIS Legal Group we are experienced in both ´ordinary´ employment contracts and dismissal cases, complex employment contracts and dismissals of and with CEO´s, as well as collective dismissals.
Take advantage of our expertise and get in touch without any obligations.