• Madrid Investment Attraction

Settle in Madrid:
 Labour & HR

Labour relations in Spain are regulated at a national level by the workers’ statute. In addition to this, collective agreements are negotiated within the limits of this statute taking into account the regulations of individual regions and sectors as well as the companies operating within them.

Estimated cost

The HR cost includes salary, with a minimum of € 10,302 per year, as well as contributions to social security which adds on average 30% of the salary.
Labour costs for companies in Spain are lower than the EU average including France, Italy, Germany and Netherlands (Eurostat).

Basic rules

- The minimum working age is 16.
- Discrimination by reason of age, sex, race or marital status is forbidden.
- There are different kinds of labour contracts: indefinite, temporary, training, long distance, full-time, part-time.
- A trial period between 1 and 6 months may apply.

Contract content

All contracts must specify the working hours, holidays and days of rest. Overtime hours under certain circumstances can be established. The maximum working week is 40 hours.
The worker’s salary must also be specified. The minimum salary in 2018 is € 24.53 per day, which is € 735.90 per month, or € 10,302.60 per year. This includes 14 annual wage payments (monthly plus two additional bonus payments, often in summer and Christmas).

Termination of employment

The termination of employment can be by mutual agreement, contract end, death, retirement or dismissal.
Dismissals can be: collective (if they affect multiple employees); on objective grounds (inadequacy, technical and economic reasons, etc); and disciplinary (absenteeism, lack of discipline, etc).
If a conflict arises, the dismissal can be declared fair (without severance pay), unfair (the company must reinstate or compensate the worker), or null (automatic reinstatement applies).

Foreign staff in Spain

If a foreign company wants to relocate staff to Spain, people from the EU, European Economic Area and Switzerland may work under the same conditions that Spaniards do. Different visas are available for non-EU nationalities, for instance: residents; foreign investors; entrepreneurs; highly-skilled professionals; or for intra-corporate transfers.