The Global Employer Spain Guide 2017 The Global Employer Spain Guide 2017 Key Contacts About the Guide For more information regarding This guide is intended to provide employers and human the Employment & resources professionals with a comprehensive overview of Compensation Practice in Spain, the key aspects of Spanish employment law. It covers the please contact: entire life-cycle of the employment relationship from hiring through to termination, with information on working terms David Diaz (Madrid) and conditions, family rights, personnel policies, workplace Tel: +34 913 91 59 59 safety and discrimination. The guide links to our global [email protected] handbooks, which include information for Spain on immigration, data privacy, trade unions and works councils. The guide also contains information on the employment implications of share and asset sales. For more information regarding the Global Employment & Save where otherwise indicated, law and practice are Compensation Practice Group, stated in this guide as at April 2017. please contact: Guenther Heckelmann (Global Chair) Tel: +49 69 2 99 08 142 [email protected] Gil Zerrudo (Asia Pacific) Tel: +63 2 819 4916 IMPORTANT DISCLAIMER: The material in this guide is [email protected] of the nature of general comment only. It is not offered as Fermin Guardiola (Europe, Middle legal advice on any specific issue or matter and should not East and Africa) be taken as such. Readers should refrain from acting on Tel: +34 91 391 59 58 the basis of any discussion contained in this guide without [email protected] obtaining specific legal advice on the particular facts and circumstances at issue. While the authors have made Carlos Felce (Latin America) every effort to provide accurate and up-to-date information Tel: +58 212 276 5133 on laws and regulations, these matters are continuously [email protected] subject to change. Furthermore, the application of these George Avraam (North America) laws depends on the particular facts and circumstances of Tel: +1 416 865 6935 each situation, and therefore readers should consult their [email protected] attorney before taking any action. The Global Employer | Spain Guide Table of Contents 1 Overview ................................................................................................................................... 1 1.1 General overview .......................................................................................................... 1 1.2 General legal framework ............................................................................................... 1 1.2.1 Sources of law.................................................................................................. 1 1.2.2 Collective agreements ..................................................................................... 1 1.2.3 Court framework............................................................................................... 2 1.2.4 Litigation considerations .................................................................................. 2 1.3 Types of working relationship ....................................................................................... 2 1.4 On the horizon ............................................................................................................... 5 2 Hiring employees ..................................................................................................................... 5 2.1 Key hiring considerations .............................................................................................. 5 2.2 Avoiding the pitfalls ....................................................................................................... 6 2.3 Procedural steps and key documents in recruitment .................................................... 6 3 Carrying out pre-hire checks .................................................................................................. 6 3.1 Background checks ....................................................................................................... 6 3.2 Reference checks ......................................................................................................... 7 3.3 Medical checks .............................................................................................................. 7 4 Immigration ............................................................................................................................... 7 5 The employment contract ....................................................................................................... 7 5.1 Form of the employment contract ................................................................................. 7 5.2 Types of employment contract ...................................................................................... 8 5.3 Language requirements .............................................................................................. 13 6 Working terms and conditions ............................................................................................. 13 6.1 Trial periods ................................................................................................................ 13 6.2 Working time ............................................................................................................... 14 6.3 Wage and salary ......................................................................................................... 14 6.4 Making deductions ...................................................................................................... 15 6.5 Overtime ...................................................................................................................... 15 6.6 Bonus and commission ............................................................................................... 15 6.7 Benefits in kind ............................................................................................................ 16 6.8 Equity incentive plans ................................................................................................. 16 6.9 Pensions ..................................................................................................................... 16 6.9.1 Private pensions............................................................................................. 16 6.9.2 State social security pensions ........................................................................ 17 6.10 Annual leave ............................................................................................................... 17 6.11 Sick leave and pay ...................................................................................................... 17 6.12 Taxes and social security ............................................................................................ 18 Baker McKenzie | i The Global Employer | Spain Guide 7 Family rights ........................................................................................................................... 19 7.1 Time off for ante natal care ......................................................................................... 19 7.2 Maternity leave and pay .............................................................................................. 19 7.3 Paternity leave and pay .............................................................................................. 20 7.4 Parental leave and pay ............................................................................................... 20 7.5 Adoption leave and pay .............................................................................................. 21 7.6 Other family rights ....................................................................................................... 21 7.6.1 Limited reduction in work hours for nursing ................................................... 21 7.6.2 Post-maternity unpaid leave of absence ........................................................ 21 8 Other types of leave ............................................................................................................... 21 8.1 Time off for dependants .............................................................................................. 21 8.2 Time off for training ..................................................................................................... 22 8.3 Workplace representatives ......................................................................................... 22 8.4 Public duty leave ......................................................................................................... 22 8.5 Marriage ...................................................................................................................... 22 8.6 Change of residence ................................................................................................... 22 8.7 Other types of unpaid leave ........................................................................................ 22 8.7.1 Voluntary leave of absence without cause .................................................... 22 8.7.2 Voluntary leave to care for a disabled family member ................................... 22 8.7.3 Enforced leave ............................................................................................... 23 8.7.4 Victims of domestic violence .........................................................................