horizons logo
Start hiring

Labor law in
Spain

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES Spanish / English

PAYROLL TAX 29.90%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours

Hire and pay talents
with Horizons in
180+ countries

Spain

    Labor law in Spain – Overview

    Employer-employee relationships in Spain are governed by various labor laws. Some of the most important relate to probation periods, mandatory notice periods, terminations, and severance. In Spanish, the employment laws are called Guía Laboral, and the Workers’ Statute is known as the Estatuto de los Trabajadores.

    The following guidelines apply to workers on indefinite-term employment contracts (by far the most common type of contract in Spain).

    Notice period laws in Spain

    A minimum notice period of 15 days must be given upon dismissal outside of probation periods. However, standard practice is to provide up to 30 days of notice.

    For resignations, employees outside of their probation period must also provide a minimum of 15 days of notice. In practice, up to three months is considered normal.

    During probation, there is no notice requirement for either dismissal or resignation.

    Severance laws in Spain

    In the case of fair dismissal, employees are entitled to a minimum of 20 days’ salary per year of service, up to a maximum of 12 months of salary.

    In cases of unfair dismissal, employees are entitled to a minimum of 33 days of salary per year of service, up to a maximum of 24 months of salary.

    We recommend paying severance to employees in any case of termination, regardless of circumstances.

    Hiring in Spain, Made Easy

    Your business can easily hire employees in Spain without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

    FAQs

    The three most relevant documents related to Spanish employment law are:

    1. The Spanish Labor Code
    2. The Spanish Workers’ Statute
    3. The Spanish Collective Agreement

    You can certainly terminate an employee in Spain during their probationary period. There is no notice required during the probationary period.

    Employees in Spain can resign during the probationary period with no notice required.

    After the probationary period, employees and employers must provide 15 calendar days’ notice when terminating employment. It is possible to provide payment in lieu of notice.

    The maximum notice of employment termination that an employer can give is 30 days; the maximum notice an employee can give when resigning is 3 months.

    The process for an employer to terminate employment can be found here.

    Success stories from businesses we’ve helped enter and grow in new markets.

    Client Testimonials

    Get started with Horizons