Spain

Germany PEOs & Employers of Record (EOR)

Dhi ADT's German PEO and EOR solutions can assist you in onboarding candidates and managing payroll and HR issues, all without the hassle of setting up a subsidiary in Spain. Once you've hired the talent you need, you can easily customize employment contracts and employee benefits, and make compliant payments—all from a single platform with just a few clicks.

Ensure compliance with local laws and handle payroll taxes while focusing on your Spanish business operations. Hire and expand into Spain using the best SaaS-based PEO service in Spain

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Employment Laws in Spain

Capital: Madrid

Language: Spanish

Currency: Euro (EUR)

Payroll Cycle: Monthly

Employment Contract: According to Spain Labor Law, both permanent and temporary contracts are mandatory and the employer has to provide one for the employee. 

The employment contract must consist of salary, start date, working hours, leaves, and notice period.

Minimum Wages: The minimum wage set by law in Spain is €1,260 per month.

Employer Taxes: The employer Contribution ranges from Approximately 31.56% - 34.28%. 

Working Hours: Full-time employees in Spain must average a maximum of 40 hours per week of work, which is calculated on an annual basis. Unless an agreement is in place, employees can’t work for more than nine hours a day. 

Annual Leave: Employees in Spain are entitled to have a minimum of 23 business days of paid leave per year.

Probation Period: The Probation period in Spain is 6 months for qualified employees and 2 months for unqualified employees.

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Notice Period: The notice period in Spain is 15 working days or 3 weeks depending upon the level of employment. 

Termination: Employers should provide a fair reason to terminate an employee. However, it has to be “Socially  Justified” if an employee is employed for more than six months and there is dismissal from the employer, by the following points. 

∙ Termination with notice for ordinary causes. 
∙ Termination of employment for disciplinary reasons without notice. 

Severance Pay: At the end of an employee’s contract, they may be entitled to receive compensation. The severance payment amount depends on different factors like the type of contract, reason for dismissal, and length of employment.

National Holidays: 11 National Holidays

1. New Year's Day Friday
2. Epiphany Thursday 
3. Maundy Thursday  
4. Good Friday  
5. Labour Day  
6. Assumption Thursday 
7. Fiesta Nacional de España 
8. All Saints' Day Wednesday 
9. Día de la Constitución 
10. Immaculate Conception 
11. Christmas Day

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