Last update 09-02-2024

Contracts. Salary. Self-employment

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Types of employment contract

Employment contracts are regulated by the Workers’ Statute (ET)(Abre en nueva ventana) .

Depending on their duration, employment contracts may be:

  • Permanent/indefinite

    • Permanent intermittent contracts ( Article 16(Abre en nueva ventana) ).

  • Temporary

    • To work on a project or carry out particular services. ( Art. 15.1.a)(Abre en nueva ventana) )

    • Temporary contracts, due to circumstances generating an accumulation of work or excess orders ( Art. 15.1.b)(Abre en nueva ventana) )

    • To replace workers who have the right to reserve their jobs, provided that the employment contract specifies the name of the replaced worker and the reason for the replacement ( Art. 15.1.c)(Abre en nueva ventana) ).

Depending on the agreed working hours, contracts may be:

  • Full time

  • Part time (as described in Articles 12(Abre en nueva ventana) and 16(Abre en nueva ventana) )

The employment contract types established in the Workers’ Statute are set out below: ( Articles 10-13(Abre en nueva ventana) )

The Labour Guide(Abre en nueva ventana) provides information about the characteristics of each type of contract.

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These contracts are subject to the transitional arrangements, regulated in Royal Decree-Law 32/2021 of 28 December, on urgent measures for labour reform, ensuring stable employment and transforming the labour market .

  • Fixed-term contracts concluded before 31 December 2021 (3rd TD)

    1. Contracts for specific works and services based on the provisions of Article 15(1)(a) of the Workers’ Statute, according to the wording in force before the entry into force of Article 1(3), concluded before 31 December 2021, as well as fixed contracts for works concluded under Article 24 of the VI National Agreement on Construction, in force on that date, will be applicable until their maximum duration, under the terms set out in those provisions.

    Similarly, specific works or service contracts concluded by public administrations and their associated or governed public bodies, provided for in legislation with the status of law, that are linked to a specific research or investment project with a duration of more than three years and in force on the date referred to in the previous paragraph, will remain in force until the end of the period fixed in accordance with the applicable legislation, subject to a maximum limit of three years from said date.

    2. Temporary contracts arising from market circumstances, an accumulation of tasks or an excess of orders and interim contracts based on the provisions of Article 15(1)(b) and (c) of the Workers’ Statute, respectively, concluded in accordance with the wording in force before the entry into force of Article 1(3), will be regulated up to their maximum duration by the wording of said provisions.

    3. Workers will be in a legal situation of unemployment when the contracts referred to in the previous paragraphs are terminated following the expiry of the agreed period or completion of the work or service that is the object of the contract, provided that these causes are not the subject of complaint.

  • Fixed-term contracts concluded between 31 December 2021 and 30 March 2022 (4th TD)

    Contracts for specific works and services and temporary contracts arising from market circumstances, an accumulation of tasks or an excess of orders, entered into between 31 December 2021 and 30 March 2022, will be regulated by the legal or conventional regulations in force on the date they were entered into and their duration may not exceed six months.

  • Transitional regime on limits on successive contracts (5th TD)

    The provisions of the wording of this Royal Decree-Law to Article 15(5) of the Workers' Statute will apply to employment contracts entered into after this Royal Decree-Law enters into force.

    With regard to previously signed contracts, for the purposes of calculating the number of contracts, the period and duration provided for in the aforementioned Article 15(5), only contracts in force when this Royal Decree-law enters into force will be taken into consideration.

     

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As from 31 March 2022, contracts regulated by the Workers' Statute (WS)

As from 31 March 2022, contracts regulated by the Workers' Statute (WS)(Abre en nueva ventana)

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Depending on their duration, employment contracts may be:

  • Indefinite
  • The employment contract is presumed to be in force for an indefinite period ( Article 15(Abre en nueva ventana) (1) WS).
  • Discontinuous fixed contracts ( Article 16(Abre en nueva ventana) WS).
  • Temporary
  • According to the circumstances of production ( Article 15(Abre en nueva ventana) (2)).
  • To replace workers with a right to keep their job, provided that the employment contract states the name of the replaced worker and the reason for the replacement ( Article 15(Abre en nueva ventana) (3) WS).

In line with the agreed working time, contracts may be:

The Workers’ Statute provides for the following types of employment contract: (  Articles 10-13(Abre en nueva ventana)  ).

In the  Labour Guide  you can find information on the features of each contract type.

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Content of employment contracts

The contracts will contain the following information:

  • The names of the parties to the employment contract.

  • The starting date of the employment relationship, and in the case of a temporary relationship, its foreseen duration.

  • The registered office of the company or, as the case may be, the address of the employer and the workplace where the worker will normally provide their services. When the worker normally provides their services in different workplaces or in mobile or itinerant workplaces, it is necessary to record such circumstances.

  • The professional category or group for the job carried out by the worker or the characterisation or a brief description of the same, in terms that make it possible to know in sufficient detail the specific content of the work.

  • The amount of the initial basic salary and wage benefits, and their payment frequency.

  • The duration and distribution of the normal working hours.

  • The duration of the holiday leave and, as applicable, the methods used to allocate and determine such holiday leave.

  • The notice periods that the employer and worker are obliged to comply with in the event of the contract termination, or if it is not possible to provide this information at the time of delivering the information, the manner in which such notice periods are determined.

  • The collective agreement applicable to the employment relationship, describing the specific data that enables its identification.

This matter is regulated by Royal Decree 1659/1998 of 24 July 1998 implementing Article 8(5) of the Workers’ Statute Act on informing workers about the basic elements in their employment contracts(Abre en nueva ventana) .

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Salary

What is meant by salary?

Salary refers to all the economic benefits paid to workers, in cash or in kind, in return for the professional provision of their services as salaried workers, whether paid for effective work, regardless of the remuneration methods, or in the form of rest periods that count as working time.

Under no circumstances, including special employment relationships, may the salary in kind exceed thirty per cent of all the salary benefits of the worker, nor may it give rise to the amount received in cash being less than the minimum guaranteed interprofessional wage.

The following items are not considered as salary:

  • amounts received by the worker as compensation or substituted by expenses incurred as a consequence of their professional activity;

  • Social Security benefits and compensation and

  • indemnities paid in the event of transfer, suspension or dismissal.

The above is regulated in Article 26 of the Workers’ Statut(Abre en nueva ventana) e.

For more information, consult the Labour Guide(Abre en nueva ventana) .

 

Minimum and average salary

The minimum guaranteed interprofessional wage is that set by the Government, after consultation with the most representative trade unions and employer associations. No worker who works a full time may receive a salary that is less than the minimum guaranteed interprofessional wage.

The average salary is the result of the statistical salary analysis; there is no legal concept of average salary.

This matter is regulated in Article 27 of the Workers’ Statute(Abre en nueva ventana) .

For more information, consult the Labour Guide(Abre en nueva ventana) .

 

What are the decisive factors used to establish the salary?

To establish the annual minimum guaranteed interprofessional wage, the following factors are taken into account:

  • The Consumer Prices Index.

  • The average national productivity.

  • The increase of the share of labour in the national income.

  • The overall economic outlook.

This matter is regulated in Article 27 of the Workers’ Statute(Abre en nueva ventana) .

For more information, consult the Labour Guide(Abre en nueva ventana) .

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Self-employment

These are individuals who normally carry out an economic or a professional activity in return for a profit personally, directly, on their own account and outside the scope of the management and organisation of another person, whether or not they provide employment to salaried workers.

The Labour Guide provides information relating to:

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Authority responsible for the information

Ministry of Labour and Social Economy
Directorate-General of Labour