Spanish labor law provides a variety of employment contracts to cater to different work needs and situations. These agreements follow standardized templates provided by the government to ensure legal compliance.

Indefinite or Permanent Contracts

Indefinite or permanent contracts are the most common type of employment contract in Spain and offer the most security for employees. They have no pre-defined end date and can be either full-time or part-time. Here are some variations of indefinite contracts:

• Full-time Permanent Contract: This is the standard permanent employment agreement, offering regular working hours per week as established by law.
• Part-time Permanent Contract (Contrato indefinido a tiempo parcial): This agreement specifies a predetermined number of working hours per week or month, which must be less than full-time hours.
• Other Permanent Contract Variations: Specific permanent contract variations exist for seasonal workers, domestic workers, disabled persons, workers over 52 years old, and victims of gender-based violence.

Temporary Contracts (Contratos temporales)

Temporary contracts are for specific circumstances and must be justified by a valid reason as outlined in the legislation. These contracts must be formalized in writing and clearly state the temporary nature of the employment. Here are the two main types of temporary contracts:

• Contracts Due to Production Circumstances (Contratos por circunstancias de la producción): These are justified by temporary fluctuations in workload or company needs.
• Worker Replacement Contracts (Contratos de sustitución): These are used to cover for an absent employee with a legitimate reason for absence, such as maternity leave or sick leave.

Training and Apprenticeship Contracts (Contratos de formación y aprendizaje)

Training and apprenticeship contracts combine work experience with vocational training for young people or those seeking to acquire new skills. The contract duration and training components are established beforehand.

Internship or Work Experience Contracts (Contratos en prácticas)

Internship or work experience contracts are designed to provide students or recent graduates with practical work experience in their field of study. The duration and terms of these agreements are regulated to prevent them from becoming substitutes for regular employment contracts.

Remote Work Contract (Contrato de trabajo a distancia)

The remote work contract is a relatively new category that allows for full-time or part-time work to be performed remotely. The agreement should specify the terms of remote work, including communication methods, work schedule adaptations, and health and safety considerations.

Employment agreements in Spain should clearly define the rights and obligations of both the employer and the employee. To ensure a comprehensive and legally sound contract, several essential clauses must be included.

Identification of Parties

The full legal names and details of both the employer company and the employee must be clearly stated. This includes the company's registration number and the employee's National Identification Document (DNI) number.

Job Position and Duties

A clear description of the employee's job title, role, and responsibilities is essential. This should outline the specific tasks and duties expected of the employee in their position. Referencing any applicable Collective Bargaining Agreements (CBAs) that govern the specific industry or profession can further define job duties and expectations.

Working Hours and Schedule

The employment contract should clearly define the employee's working hours, including the number of hours per week, daily schedule, and rest periods. Spanish law generally establishes a 40-hour workweek limit.

Compensation and Benefits

The agreement must detail the employee's salary structure, including base salary, any bonuses, commissions, or overtime pay. The contract should also outline any benefits offered by the employer, such as health insurance, pension contributions, or travel allowances.

Vacation and Leave

Minimum statutory vacation entitlement in Spain is 30 calendar days per year. The contract should specify the details of vacation leave, including accrual methods and scheduling procedures. Additional leave provisions, such as sick leave, parental leave, and personal leave, should also be outlined, referencing any enhancements established by applicable CBAs.

Termination Clauses

The employment contract should detail the grounds and procedures for termination of the employment relationship by both the employer and the employee. This includes outlining notice periods, severance pay, and any specific conditions related to termination based on contract type.

Confidentiality and Intellectual Property

If the role requires the employee to handle confidential information or intellectual property of the company, the contract should include clauses outlining these expectations and any restrictions on disclosure or use of such information.

Applicable Law and Dispute Resolution

The agreement should specify the legal framework governing the employment relationship, typically referencing Spanish labor law and any relevant CBAs. The contract may also outline preferred methods for resolving any disputes that may arise during employment.

Probationary periods are a standard part of Spanish employment contracts, offering both employers and employees the opportunity to evaluate compatibility during an initial phase.

Duration of Probation

The maximum length of a probationary period is determined by law and can be further restricted by collective bargaining agreements (CBA) specific to a sector or company. The Workers' Statute provides the general guidelines:

• Six months: This is the maximum for qualified technical employees (college or junior college graduates).
• Two months: This is the maximum for all other employees in companies with 25 or more employees.
• Three months: This is the maximum for non-qualified employees in companies with fewer than 25 employees.

Note: Collective bargaining agreements can stipulate shorter probation periods than these legal limits. It's essential to consult the relevant CBA to ascertain the exact duration applicable to a specific role.

Key Points Regarding Probation

• Written Agreement: The probation period must be explicitly agreed upon in writing at the start of the employment relationship. If not established in writing, the employment is considered to be without a probation period.
• Employee Rights: During probation, employees have the same rights and obligations related to their job position and professional category as they would after passing the probation period. This includes salary, social security contributions, and working conditions.
• Termination During Probation: Both the employer and the employee have the right to terminate the employment relationship during the probation period without prior notice and without the need for just cause. However, termination cannot be based on discriminatory reasons or violate fundamental rights.

Additional Considerations

• Previous Employment: If an employee has previously worked for the same company in the same position, they cannot be subjected to a new probation period.
• Suspension of Probation: Sick leave taken during the probation period may suspend the probation period until the employee returns to work.

Spanish employment agreements often include confidentiality and non-compete clauses to safeguard the employer's legitimate business interests. However, these clauses are regulated to maintain a balance between the employer's interests and the employee's right to work.

Confidentiality Clauses

Confidentiality clauses, which are generally enforceable in Spain, restrict employees from disclosing the employer's confidential information to third parties without authorization. Spanish law acknowledges the concept of "professional secrecy," which limits an employee's ability to disclose confidential information even after the employment relationship ends.

The scope of a confidentiality clause should be clearly defined in the employment agreement. It should specify what constitutes confidential information and the limitations on disclosure during and after employment.

Non-Compete Clauses

Non-compete clauses in Spain are more restricted than confidentiality clauses. The Spanish Workers' Statute recognizes the right to work and freedom to choose a profession. Therefore, non-compete clauses can only be enforced under certain conditions:

• Legitimate Interest: The non-compete clause must protect a legitimate interest of the employer, such as trade secrets, customer lists, or specific know-how.
• Reasonable Scope: The clause's limitations on geographical area, duration, and activities must be reasonable. Spanish law limits the duration of non-compete clauses to a maximum of two years for highly qualified employees and six months for others.
• Compensation: The employer must provide adequate financial compensation to the employee for the limitations imposed by the non-compete clause.