Last updated on: September 26th, 2022
The Labor Law in Spain is mainly regulated by the Workers Statute. The Code governs the terms and conditions of employment such as working hours, holidays, rest periods, wages, overtime, leave and termination of employment, etc. However, Collective Bargaining Agreements (CBAs) are another crucial source of labor relations. CBAs are negotiated at the sector/company level by the employer and employee representatives. These CBAs may grant better rights regarding specific working conditions (i.e. annual leave, holidays).
Hours & Pay Regulations
Normal Working Hours
The duration of the working day will be agreed upon in the collective agreements or employment contracts. The maximum duration of the ordinary working day will be 40 hours per week of effective work based on average annual computation. The maximum workday is 9 hours.
Flexible working hours in excess of the 9 hours per day limit can be granted under a CBA or between the employer and the employee.
In the absence of an agreement or CBA, the employer can distribute only 10% of the irregular working hours throughout the year, the rest is fixed. The distribution must comply with statutory minimum daily and weekly rest periods and employees must be informed 5 days in advance of the exact date and time of the irregular working days. Art 34 of the Workers’ Statute.
The employer shall for the purposes of calculating overtime record the working hours of each employee on a day-to-day basis and shall be totaled in the period set for payment of the remuneration by giving a copy of the summary to the employee in the corresponding receipt.
This record must include the specific start and end times of each employee’s working day, without prejudice to any flexible hours that may be provided. The register must therefore contain, at a minimum, the start and end times of each worker’s working day.
The working hours of part-time employees will be recorded day by day and will be totaled monthly, giving the employee a copy, along with the receipt of wages, of the summary of all the hours worked each month, both ordinary and complementary work.
The employer must keep the monthly summaries of the working hour’s records for a minimum period of 4 years. Art 12, 34, and 35, of the Workers’ Statute.
Shift work is considered to be any form of work according to which employees successively occupy the same jobs, according to a certain rhythm, continuous or discontinuous, implying for the employees the need to provide their services at different times in a given period of days or weeks.
In companies with continuous production processes 24 hours a day, in the organization of shift work, the rotation of the shifts will be taken into account and no employees are working at night for more than 2 consecutive weeks, except for voluntary assignment.
Companies that, due to the nature of their activity, carry out shift work, including Sundays and holidays, may do so either by teams of employees who carry out their activity for full weeks or by hiring personnel to complete the necessary equipment for one or more days a week. Art 36, of the Workers’ Statute.
Employees are not legally required to work overtime unless this is stipulated in a collective agreement or individual employment contract. Overtime hours and pay are usually governed by the applicable CBA, which will often provide for more generous entitlements. The number of overtime hours may not exceed 80 per year.
Employees who work less than the standard working day (i.e. 40 hours per week), as a result of terms or duration of their contract, shall consider their maximum annual number of overtime hours in the same proportion that exists between such working days.
Senior employees (ie, employees who report to the board of directors and have managerial powers) can and often waive their right to overtime pay or compensatory time off.
Pay – An employer has the right to choose between an overtime premium pay or compensation with equal time off. The employer is free to choose between offering overtime pay or time off in lieu.
Overtime must be paid by the hour, applying a premium over the standard hourly rate or as provided under a collective bargaining agreement.
In the absence of an agreement in this regard, it will be understood that the overtime hours performed must be compensated by rest within 4 months of their completion. The compensatory rest is equivalent to the number of hours worked as overtime.
The additional hours worked to prevent or repair accidents and other extraordinary and urgent damages will not be taken into account when calculating the maximum number of authorized overtime hours, irrespective of whether they have been compensated as overtime. Art 35, of the Workers’ Statute.
Night work is work performed between 10 pm and 6 am. An employer who works between 10 pm and 6 am qualifies for premium pay as established under the collective agreement.
The workday of night employees may not exceed 8 hours a day on average, in a reference period of 15 days. A night employee shall be considered to be one who normally performs a part of the day’s work during the night period for not less than 3 hours, as well as one who is expected to be able to perform in the such period a part of not less than a third of their annual working hours.
The employees who work at night are not entitled to perform overtime. Overtime cannot be performed within the night period, except in the cases of special days extended by regulation or when necessary to prevent and repair accidents.
A free health assessment must be provided to employees before they begin working a night shift and at regular intervals thereafter. Night employees who experience health problems must be allowed to transfer to a daytime job.
Pay – An employee who performs night work shall be entitled to a specific remuneration that will be determined in collective bargaining unless the salary has been established taking into account that the work is done at night by its own nature or compensation for night work has been agreed to be given as compensatory off. Art 36, of the Workers’ Statute.
Employees required to work more than 6 uninterrupted hours are entitled to a minimum 15 minutes rest break. This rest period will be considered an effective working time when so established by a collective agreement or employment contract.
Employees under 18 years of age may work a maximum of 8 hours per day and must be given 30 minute breaks if their working day exceeds 4 1/2 continuous hours. Art 34, of the Workers’ Statute.
An employee shall be entitled to 12 hours of rest between the end of a day and the beginning of the next day. Art 34, of the Workers’ Statute.
Employees are entitled to an uninterrupted 1.5 days of minimum weekly rest. The weekly rest can be accumulated over a maximum period of 2 weeks (i.e period up to 14 days). Weekly rest as a general rule consists of Saturday afternoon or, where appropriate, Monday morning and the full day Sunday. The duration of the weekly rest for minors under 18 years of age will be at least 2 uninterrupted days. Art 37, of the Workers’ Statute.
Employees are entitled to 14 public holidays per year. 8 holidays are observed countrywide:
- New Years: January 1st. Friday
- Good Friday: April 2. Friday
- Labor Festival: May 1. Saturday
- National Holiday of Spain: October 12. Tuesday
- All Saints: November 1. Monday
- Constitution Day: December 6, Monday
- Immaculate Conception: December 8. Wednesday
- Christmas Day: Saturday, December 25
Besides national holidays, each region (Andalucía, Aragon, Asturias, the Balearic Islands, the Basque Country, the Canary Islands, Cantabria, Castile and Leon, Castilla la Mancha, Catalonia, Extremadura, Galicia, Madrid, Murcia, Navarre, La Rioja, and the Valencian Community) decides on 3 additional holidays of its own and each local council on 2.
Working holidays shall be paid at a regular rate and are not recoverable, and may not exceed 14 a year, of which 2 shall be local working holidays.
The government has the option of moving the celebration of holidays that fall on weekdays to the Monday following the day of rest from work for holidays that fall on Sunday.
The autonomous communities may specify their own traditional holidays within the annual limit of 14 holidays, substituting the national holidays and, in any case, holidays that fall on Sunday are permitted to use the Monday transfer. They can add one more festival up to a maximum of fourteen, in the year that occurs if it is unable to hold one of its traditional festivals because a sufficient number of national holidays do not fall on Sunday.
Pay– Any employee who works on a holiday shall be entitled to pay at a regular rate as there is no statutory provision for premium pay for work on a holiday. Art 37, of the Workers’ Statute. Royal Decree, 2001/1983 of July 28.
Employees are entitled to a minimum of 30 calendar days of annual leave paid at their regular rate, this can be increased by collective agreements or by individual employment contracts.
Leave entitlement is reduced proportionally for periods of employment less than a year. Unused leave does not generally carry forward to the next year, although there are exceptions to this rule (e.g., pregnancy or maternity leave). Payment in lieu of leave is not permitted except on termination of the employment contract.
When employees can take their annual leave entitlement is a matter of agreement between the employer and the employee. In case of disagreement between the parties, the dates will be decided by local labor authorities.
If an employee’s holiday period coincides with certain temporary disabilities including pregnancy, childbirth, or breastfeeding the employee is entitled to take a paid vacation at another time within the same year. If the temporary disability has another cause, the employees may take a paid vacation at another time within 18 months. Art 38, of the Workers’ Statute.
Effective January 1, 2022, the minimum wage rate in Spain is 1000 euros per month.
The worker is entitled to two extraordinary bonuses per year, one of them on the occasion of the Christmas holidays and the other in the month that is set by collective agreement or by agreement between the employer and the legal representatives of the workers. Likewise, the number of such bonuses will be fixed by collective agreement.
The minimum wage given above is subject to change and may not be up to date. Kindly access the link to get current wage rates.
Employees are entitled to up to 365 i.e. 12 months’ sick leave. Subject to obtaining a doctor’s certificate, sick leave can be extended by up to a further 6 months. At the end of the 18-month sick leave period, the social security body determines whether:
- the employee is fit to return to work;
- the employee is suffering from a permanent disability or illness and therefore is unable or unfit to return to work, in which case their employment contract will end and the employee will be entitled to a state pension; or
- the employee does not suffer from a permanent disability or illness and is expected to recover, but remains unfit for work, in which case they may be entitled to a further extension of up to six months. The maximum potential period of sick leave is therefore 24 months.
In cases of temporary incapacity, Social Security pays a portion of the employee’s salary in the form of an allowance, the amount of which is determined by the calculation basis for the previous month.
Pay– In order to qualify, the employee must have paid 180 days’ worth of social security contributions in the 5 years prior, with the exception of cases where the incapacity is caused by a work-related illness or accident that does not require a prior contribution period.
Sick pay for non-work-related injuries and illnesses
An employee is entitled to a percentage of their salary, the total amount of which is capped at €3,751.20 per month. The multiplier used to determine the amount of sick pay is known as the ‘average daily base’ as used to calculate the social security contributions that applied during the month before the sick leave:
- days one to three – there is no statutory requirement for either the employer or the state to pay the employee;
- days four to 20 – the employee is entitled to sick pay from the employer equal to 60% of their reference salary (capped). This amount cannot be recovered from the state, and
- from day 21 onwards – the employee is entitled to sick pay from the employer equal to 75% of their reference salary (capped). This amount can be recovered from the state.
After 18 months’ sick leave, the employer will no longer be obliged to pay sickness-related social security contributions for the employee.
Sick pay for work-related injuries and illness
For work-related injuries and illnesses, the employee is entitled to sick pay from the employer equal to 75% of their reference salary (capped) from day one onwards. This amount can be recovered from the Mutua Madrileña (a non-profit Spanish insurer). General Social Security Act, 2015, arts. 216.
Employees are entitled to a maximum of 16 weeks maternity leave, comprising:
- 6 compulsory weeks, which must be taken by the mother following birth; and
- 10 flexible weeks, which can be used either before or after childbirth or can be transferred to the working father, whether or not he is married to the mother, subject to being registered with the State Social Security System.
This time off can be taken concurrently or successively. The 10 weeks cannot be transferred to the father if the mother’s return to work before the end of the leave would endanger her health. The 16 weeks’ leave can be extended in the following circumstances:
- in the case of multiple births, in which case 2 weeks’ additional leave per child is offered;
- where the child is born with a disability, in which case 2 weeks’ additional leave is offered;
- in the case of premature birth, in which case 13 weeks’ additional leave is offered; and
- in the case of the hospitalization of the child, in which case 13 weeks’ additional leave is offered.
The employment contract, applicable CBA or company policy can offer more generous entitlements. The mother is also entitled to time off to attend antenatal medical appointments and parenting and birth preparation classes, as well as time off post-birth for breastfeeding purposes.
During the 9 months following the birth, the employee is entitled to work 1 hour less per day without any reduction in the salary. The hour can be taken in two separate 30-minute breaks. Alternatively, the employee can elect to shorten the working day by 30 minutes or accumulate the time as paid working days (15 days approximately). This right is transferable to the working father.
These rights are gender-neutral and are applicable to same-sex couples, adoptions or family placements, and guardianships for the purpose of adoption or fostering.
Pay – Although all employed mothers are entitled to maternity leave, they will be entitled to social security benefits only if they satisfy the social security eligibility requirements. Once the mother meets these requirements, she is entitled to benefits equal to 100% of her average monthly salary, capped at €3,751.20 for the duration of her leave. If she does not satisfy the eligibility requirements, the mother will be entitled to a flat-rate benefit of €532.51 per month, equal to €17.75 per day, for up to 42 days. Royal Legislative Decree 2/2015 approving the consolidated text of the workers’ Statute, art. 48(4) (Spanish); Royal Legislative Decree 1/1995, art. 56.
Fathers of a newborn are entitled to 16 weeks of paid paternity leave. There is a mandatory period of 4 uninterrupted weeks of paternity leave immediately after childbirth for both mother and father. After that, the father can take the other 8 weeks continuously or uninterruptedly, by week, and on full, or partial time arrangement during the child’s first year. But if the birth, foster care, or adoption had occurred between April 1 and December 31, 2019, the permit would be only 8 weeks.
The first six weeks after birth, foster care or adoption will be mandatory. The remaining weeks are a right of the other parent other than the biological one and not an obligation, so they can be waived. If the biological mother dies, whether working or not, the second parent will have the right to enjoy the 16 weeks of leave that corresponded to the first parent.
The 16 weeks are 100% paid by the state and non-transferable, which means that if one parent decides not to take the time off, the other parent cannot take advantage of it. Art 48(7) of the Workers’ Statute.
Parents who adopt or act as foster parents are entitled to up to 16 weeks leave when:
- the child is aged under six, or
- the child is aged over six but suffers from a physical or mental disability.
The first six weeks after birth, foster care or adoption will be mandatory. The remaining ten weeks may be enjoyed in weekly periods, accumulated or interrupted, within the twelve months following the judicial resolution by which the adoption is constituted or the administrative decision of custody for the purposes of adoption or foster care.
The employee is entitled to two extra weeks per child in the event of multiple adoptions and fostering. If both parents work, they can share this leave, which can be taken either concurrently or successively. If taken concurrently, the total length of absence cannot exceed the maximum permitted.
In the event of disability of the son or daughter at birth, adoption, in custody for adoption or foster care, the employee will have an additional duration of two weeks, one for each of the parents. The same extension will proceed in the case of birth, adoption, custody for adoption, or multiple foster cares for each son or daughter other than the first.
Pay – If the employee satisfies the social security eligibility requirements, they will be entitled to social security benefits equal to 100% of their average monthly salary, capped at €3,751.20. If the employee does not satisfy the eligibility requirements, they will be entitled to a flat-rate benefit of €532.51 per month, equal to €17.75 per day, for up to 42 days. Art 46, of the Workers’ Statute.
Employees with at least one year of seniority are entitled to 20 hours per year of training leave, linked to the activity of the company. Art 46, of the Workers’ Statute.
In the following circumstances, employees are entitled to receive their full salaries for the periods indicated:
- 15 calendar days in case of marriage;
- The time required to comply with a public obligation (e.g., voting or jury duties);
- 2 days in case of the birth of a child or the death, accident or illness of a close relative (four days if travel is required);
- 1 day for moving to a new residence, and
- The time necessary to execute union duties and worker representation.
Both parents have an individual right to take unpaid parental leave to care for a child for up to:
- 3 years following childbirth; or
- 3 years from the date on which the child is placed for adoption or permanent fostering.
If both parents work for the same employer, the employer may limit their ability to take parental leave at the same time in certain situations and where it is necessary for the business. If the parent returns to work within the first year of parental leave, they will be entitled to return to their former position. While employees are not entitled to compensation, the time during which unpaid leave is taken for child care must be considered by the employer in calculating seniority and the right to participate in training. If the parent returns to work within the second or third year of parental leave, they will be entitled to a role within the same professional group or equivalent category. Art 46, of the Workers’ Statute.
The Statute of Workers also guarantees employees unpaid leave of up to 2 years to take care of a close family member (parent, child, sibling, grandparent or grandchild, aunt or uncle, first cousin or niece or nephew) in the event the family member is handicapped or is deemed by the health authorities to be unable to execute the most basic activities of daily living without help from a third person. Art 46, of the Workers’ Statute.
Employees with at least one year of seniority in the company have the right to be recognized as having the possibility of taking a voluntary leave of absence for a period of no less than four months and no more than five years. This right may only be exercised again by the same worker if four years have elapsed since the end of the previous voluntary leave. Time taken for unpaid voluntary leave is not considered in the calculation of seniority. Art 46, of the Workers’ Statute.