Employment Contracts in Spain: Requirements for Employers

Employment contracts in Spain operate within a relatively structured labour law framework. For employers, particularly foreign companies hiring in Spain for the first time, signing an agreement with an employee is only one part of establishing a compliant employment relationship.

The Spanish Workers’ Statute (Estatuto de los Trabajadores) establishes the core rules, but employers may also need to comply with an applicable collective bargaining agreement (convenio colectivo). That agreement can influence salary levels, working time, probation periods, job classification, allowances and other employment conditions.

Spain also places significant restrictions on the use of temporary employment. As a general principle, employment is presumed to be indefinite, while fixed-term contracts require a legally recognised justification.

For employers, the practical lesson is important: an employment contract should not be drafted in isolation. The company first needs to determine the correct contract type, applicable collective agreement and mandatory employment conditions.

Table of Contents

What Is an Employment Contract in Spain?

An employment contract establishes the relationship under which an individual performs work for an employer, within the employer’s organisation and direction, in exchange for remuneration.

Under Article 8 of the Workers’ Statute, employment contracts can in principle be concluded verbally or in writing. However, Spanish legislation requires written form for various categories of employment, and either party can request written formalisation even after the employment relationship has begun.

From an employer-risk perspective, written contracts should normally be the standard approach.

A properly prepared contract creates a clear record of important employment conditions, including the position, remuneration, working schedule, workplace and other agreed terms.

However, the contract cannot simply override statutory or collectively agreed employee rights.

This is one of the first differences international employers need to understand when hiring in Spain.

Permanent Employment Is the Default

Spain’s employment framework treats indefinite employment as the standard form of employment.

SEPE states that, in principle, an employment contract is indefinite and full-time unless otherwise established. An indefinite contract has no predetermined end date and may be full-time, part-time or structured for fixed-discontinuous work where appropriate.

This has practical consequences for workforce planning.

An employer should not choose a temporary contract merely because:

the company is entering Spain for the first time;
management wants greater flexibility;
the employee is the company’s first Spanish hire;
the business wants to “test” the employee;
the employer has not yet decided whether the Spanish operation will be permanent.

The company’s commercial uncertainty does not automatically create a lawful basis for temporary employment.

Where the role represents an ongoing workforce requirement, employers should normally assess whether an indefinite employment contract is appropriate.

When Can Employers Use Temporary Contracts in Spain?

Temporary employment is much more restricted.

Under Article 15 of the Workers’ Statute, a fixed-term contract may be used only on specified grounds: circumstances of production or substitution of a worker. The employer must identify the legal basis for temporary employment, the specific circumstances justifying it and the connection between those circumstances and the expected duration of the contract.

This is considerably more demanding than simply inserting an end date into an employment agreement.

A contract based on circumstances of production can be relevant where there is an occasional and unforeseeable increase or fluctuation in activity creating a temporary mismatch between the company’s normal workforce and its staffing requirements. Spanish rules also provide for certain limited foreseeable situations.

A substitution contract may be appropriate, for example, when replacing an employee who has the right to return to their position. The contract must identify the person being replaced and the reason for substitution where required.

Employers should therefore establish the legal justification before issuing a temporary contract.

Incorrect use of fixed-term employment can have significant consequences. SEPE notes that employees hired in breach of Article 15 can acquire permanent status.

Fixed-Discontinuous Contracts

Another contract structure international employers may encounter is the contrato fijo-discontinuo.

This is an indefinite employment relationship designed for work that is intermittent, seasonal or otherwise performed during recurring periods rather than continuously throughout the year.

The important distinction is that fixed-discontinuous employment is not simply another temporary contract.

The employment relationship itself is indefinite.

This can make the model relevant to businesses with recurring seasonal or intermittent workforce requirements, but employers need to determine whether the actual pattern of work fits the statutory conditions.

Using a short-term contract repeatedly for work that is structurally recurring can create unnecessary compliance risk.

Part-Time Employment Contracts

Employees can also be hired on a part-time basis in Spain.

Part-time contracts require particular attention to working hours.

SEPE guidance specifies that the contract should state the number of ordinary working hours contracted per day, week, month or year and their distribution. Failure to meet the relevant formal requirements can create a presumption that the employment relationship is full-time unless the employer can demonstrate otherwise.

This makes accurate drafting particularly important.

Employers should avoid treating a part-time contract as simply a standard employment agreement with a lower salary. Working-time arrangements need to correspond to the employee’s actual schedule and the applicable legal and collective bargaining requirements.

What Should an Employment Contract in Spain Include?

The exact content depends on the type of employment and circumstances of the role.

In practice, employers should ensure that the documentation clearly addresses the essential conditions of employment, which commonly include:

Employer and employee identification.
The agreement should clearly identify both parties.

Start date.
The date on which employment begins should be unambiguous.

Contract type and duration.
The agreement should specify whether employment is indefinite or falls within another lawful contractual structure.

Position and professional classification.
The employee’s role should correspond to the appropriate professional category or classification, including requirements arising under the applicable collective agreement.

Place of work.
The contract should establish where the employee normally performs their duties and address remote or hybrid arrangements where relevant.

Working hours and schedule.
The agreement should reflect applicable working-time rules and the relevant collective agreement.

Remuneration.
Salary and relevant compensation components should be clearly defined and must comply with statutory and collectively agreed minimum requirements.

Probation period.
If the employer intends to use one, it should be agreed in writing and comply with applicable limits.

Applicable collective bargaining agreement.
The employer should identify which convenio colectivo, if any, governs the employment relationship.

Additional contractual provisions.
Depending on the position, these may address confidentiality, intellectual property, benefits, variable compensation or other legitimate employment matters.

The contract should be considered a compliance document, not simply an offer-letter formality.

Collective Bargaining Agreements Can Change the Employment Terms

One of the most important issues for foreign employers is the role of collective bargaining agreements.

A convenio colectivo can establish employment conditions for a particular industry, activity, company or geographical scope.

Depending on the agreement, it can regulate matters such as:

minimum salaries;
salary bands;
professional classifications;
working hours;
overtime;
probation periods;
allowances;
leave;
working schedules;
notice requirements;
other employment benefits.

This means that two employees with similar job titles working for different companies may not necessarily be subject to identical employment conditions.

For an international employer, determining the applicable collective agreement should therefore happen before compensation and contractual conditions are finalised.

Otherwise, a company may agree a salary or working arrangement only to discover that additional obligations apply.

How Do Probation Periods Work in Spain?

A probationary period (periodo de prueba) can give both employer and employee an initial period to assess the employment relationship.

But employers cannot simply choose any probation period they prefer.

Article 14 of the Workers’ Statute requires probation to be agreed in writing and makes its duration subject first to limits established in the applicable collective bargaining agreement.

Where the collective agreement does not establish a different limit, the statutory framework generally provides a maximum of six months for qualified technicians and two months for other employees. For employers with fewer than 25 employees, the default maximum for workers who are not qualified technicians can extend to three months.

For fixed-term contracts under Article 15 lasting no more than six months, the probation period generally cannot exceed one month unless the collective agreement provides otherwise.

There is another important restriction: a probation clause can be invalid where the employee has previously performed the same functions for the company.

Employers should therefore check both the employee’s history and the applicable collective agreement before inserting a standard probation clause.

Salary Must Be Checked Against More Than the National Minimum Wage

When drafting employment contracts in Spain, employers should not rely exclusively on Spain’s statutory minimum wage.

The applicable collective agreement may establish minimum remuneration above the national minimum for particular professional categories.

Job classification therefore becomes directly relevant to payroll.

Employers need to determine:

which collective agreement applies;
how the employee should be professionally classified;
which salary level applies to that classification;
whether additional allowances or salary components are required;
how remuneration will be paid.

This is particularly important for foreign businesses that establish compensation using international salary bands without first checking Spanish requirements.

An internationally competitive salary may still be incorrectly structured from a local payroll perspective.

Working Hours Should Match the Actual Arrangement

Working time is another area where the written contract and actual employment relationship should align.

Employers should define whether the employee works full-time or part-time and establish the applicable working schedule.

The contract should also be assessed alongside statutory working-time requirements and the relevant collective agreement.

Problems can arise when a global employment template contains a standard working-hours clause that does not correspond to the Spanish agreement governing the employee.

For international employers, localising the contract is therefore more than translating it into Spanish.

The underlying employment conditions need to be localised as well.

Remote and Hybrid Work Requires Additional Attention

Remote employment has become a normal part of international hiring, but it should not be treated as an informal arrangement.

Where an employee regularly works remotely in Spain, employers may need to consider Spain’s remote-work legislation and additional documentation requirements depending on the extent and structure of remote work.

The company should address practical issues such as:

where work will normally be performed;
office and remote-working arrangements;
equipment;
work-related expenses;
data protection;
occupational health and safety;
working-time recording;
information security.

Cross-border remote work creates another layer of complexity.

If a Spain-based employee regularly works from another country, employers may also need to assess social security, payroll, tax and employment-law implications.

HR flexibility should therefore be coordinated with payroll and compliance rather than agreed informally between the employee and line manager.

Employers Must Communicate Contracts to the Public Employment Service

Signing the contract does not complete the employer’s administrative responsibilities.

Employers must communicate the content of employment contracts, and applicable extensions, to the Public Employment Service within 10 days, whether or not the contract itself was required to be formalised in writing.

Employers may also have obligations concerning the basic copy of written contracts and employee representatives. SEPE explains that basic copies generally exclude sensitive identifying information and are subject to the relevant communication process.

For companies accustomed to jurisdictions where an employment agreement is primarily an internal document, this administrative step should be incorporated into the onboarding workflow.

Contract documentation should also be coordinated with Spanish Social Security requirements.

An employee should not simply begin working while payroll and registration matters are dealt with later.

Onboarding needs to connect:

employment contract → Social Security registration → payroll → statutory contributions → employment records.

This is one reason international employers should have their Spanish payroll infrastructure ready before the employee’s start date.

Recruitment and payroll implementation should not be treated as completely separate projects.

Can Foreign Companies Use Their Global Employment Contract Template?

They can use a global template as a starting point, but using it without Spanish localisation can create problems.

Typical global contracts may contain provisions on:

probation;
termination;
working hours;
holiday;
salary;
intellectual property;
restrictive covenants;
remote work.

These provisions may need to be modified to reflect mandatory Spanish rules and the applicable collective agreement.

A clause that is standard in the UK, United States or another European jurisdiction does not automatically operate in the same way in Spain.

Translation alone is therefore insufficient.

A Spanish employment contract should be legally and operationally localised, not merely linguistically localised.

Common Employment Contract Mistakes in Spain

Foreign employers repeatedly encounter similar problems when entering the Spanish market.

Using a Temporary Contract Without a Valid Reason

A fixed end date does not itself justify fixed-term employment.

The employer needs a recognised legal basis for the temporary relationship.

Ignoring the Applicable Collective Agreement

This can result in incorrect salary, job classification, working hours, probation or benefits.

Copying Probation Terms from Another Country

Probation periods are regulated and may be further restricted by collective agreements.

Incorrectly Structuring Part-Time Employment

Part-time hours need to be properly documented. Poor drafting can create disputes over whether employment should be treated as full-time.

Failing to Register or Communicate the Contract Correctly

Contract execution needs to be connected to the required employment and Social Security processes.

Using a Global Contract Without Localisation

Global templates can be useful operationally, but Spanish employment rights cannot simply be replaced by headquarters’ standard terms.

Treating Remote Work as an Informal Benefit

Regular remote working can create documentation, expense, health and safety, data protection and cross-border compliance considerations.

Employment Contracts When Hiring Without a Spanish Entity

Foreign businesses entering Spain face another question before they even draft the employment agreement:

Who will be the employer?

A company establishing substantial long-term operations may decide to create a Spanish legal entity and employ workers directly.

However, establishing an entity may be disproportionate when the company wants to hire one employee, test the Spanish market or build an initial team before making a larger investment.

In these circumstances, an Employer of Record in Spain can provide an alternative employment structure.

The EOR becomes the legal employer in Spain and generally manages the local employment contract, payroll, statutory contributions and employment administration, while the client company directs the employee’s operational responsibilities.

This can allow a foreign business to hire employees in Spain without immediately establishing its own local employing entity.

An EOR does not remove Spanish employment requirements. Instead, it provides a local employment structure through which those requirements can be administered.

For employers comparing EOR with entity establishment, the decision should consider expected headcount, duration of operations, cost, control and long-term expansion plans.

Employer Checklist Before Signing an Employment Contract in Spain

Before an employee starts work, the employer should be able to answer several questions confidently:

What type of contract is appropriate?
Do not default to temporary employment for convenience.

Which collective bargaining agreement applies?
Determine this before finalising compensation.

Is the employee correctly classified?
Professional classification can affect salary and other conditions.

Does the salary comply with applicable minimum requirements?
Check both statutory and collective-agreement requirements.

Is the probation period valid?
Review the applicable collective agreement and the employee’s previous relationship with the company.

Are working hours properly documented?
This is particularly important for part-time employees.

Is remote work properly structured?
Do not rely solely on informal agreements with the manager.

Are Social Security and payroll ready?
The employment contract should form part of a coordinated onboarding process.

Has the required communication to the employment authorities been planned?
Remember the 10-day contract communication requirement.

This checklist is especially useful when a company is making its first Spanish hire.

How Brain Source International Can Support Hiring in Spain

Brain Source International supports international companies with recruitment, workforce expansion and employment solutions across Spain.

For businesses building Spanish teams, support can include recruitment in Spain, international talent acquisition and Employer of Record in Spain solutions where an EOR structure is appropriate.

For companies without an established Spanish employing entity, an EOR can provide a practical route for hiring local employees while payroll and employment administration are managed through a local structure.

The objective is not simply to issue an employment contract. It is to ensure that recruitment, employment structure and workforce administration work together as the company expands in Spain.

Planning to hire employees in Spain? Brain Source International can help you structure recruitment and employment around your expansion strategy.