Expatries Network
Spain

Employment contract and termination in Spain

In Spain, the drafting of the employment contract commits the payroll for its whole duration: the language used, the form adopted and the mandatory particulars are fixed by local law, not by the practice of head office.

Termination is the moment when drafting errors are paid for. Final settlement, notice, severance and exit documents obey local rules that the payroll manager applies every month: it is that person, and not the legal department at head office, who spots a poorly drawn contract. Having the model contract reviewed by the firm that will run the payroll costs little and avoids most disputes.

Spanish collective agreements are frequently concluded at provincial level, so the same activity may be governed by different texts in Madrid and in Barcelona. An employer applying its head office agreement to an employee based elsewhere is working from the wrong reference.

Remuneration also includes, under virtually every agreement, additional monthly payments made during the year. They may be spread across the year where the agreement permits, but their existence is not open to negotiation.

A document little known outside Spain governs the checking of a provider: the certificado de situación censal, which sets out the filing obligations actually registered and the declared economic activity code. It shows whether a candidate genuinely carries on accounting and employment administration work rather than holding a corporate purpose that exists only on paper. All three checks can be carried out remotely and quickly.

The local framework in Spain

Working languages
Spanish
Payroll currency
EUR
European status
European Union member state

Points to watch in Spain

Point d'attention n°1 : l'autorización del Sistema RED délivrée par la TGSS est en pratique la pièce la plus discriminante — sans elle, le cabinet ne peut pas transmettre les cotisations d'un client tiers ; la demander explicitement. Point n°2 : le certificado de situación censal permet de vérifier que l'épigraphe IAE déclaré correspond bien à une activité de gestion comptable et sociale, et pas à un objet social de façade. Point n°3 : attention aux appellations concurrentes — « gestoría », « asesoría laboral », « despacho profesional » et « consultoría » ne recouvrent aucune qualification légale, contrairement à « Graduado Social colegiado ».

Back to the Spain profile

You employ staff in Spain

Describe your requirement. It is put to the partners in that country as an anonymous summary, and your contact details are passed on to the selected firm alone.

Request a provider in Spain

You run payroll in Spain

Submit an application: we review your file, we check the documents required on the ground and we give you an answer, whether it is positive or not.

Submit an application

The other angles for Spain

See the 120 countries of the network