From time to time, we have clients come to see us who have problems with their employers in Spain and being paid, either during their time of working or if they are “let go”.
Contract
Employers in Spain have an obligation to provide an employment contract signed by both parties and should provide the employee with a copy stamped by the local labour office.
Contracts are either indefinite ones, for full-time or part-time (basically a full contract), or they can be temporary ones. The temporary ones can only be renewed twice after the first one (so two renewals) or a maximum of 1 year, but in total, someone cannot be on a temporary contract more than a year.
You should make sure that you keep a copy of your contract. If you do not have one, then be aware that you are working illegally and that the longer it goes on, the harder it would be to fight for your rights and what is due to you.
Pay should be by bank transfer and the employer must deduct monthly contributions to the Social Security from your salary, provided that this exceeds the minimum annual salary, which is around EUR 640 per month. These contributions are calculated as a percentage of your taxable income. The employer will send your contributions to the Social Security (Seguridad Social).
Your salary is also subject to personal income tax in Spain. The employer will deduct monthly amounts from your salary and forward the same to the Tax Office. The amount to be deducted will depend on your income level.
Payslips
You should receive a payslip each time you are paid showing the deductions made and keep these. If you are paid by cash, then we would recommend that you retain the receipts you sign (which you should sign when you pay by cash). You do need to keep some evidence of payment in the unlikely event of future problems.
Individual Dismissal
A dismissal must be notified in writing to an employee. Redundancy pay varies with the contracts.
If you are unhappy with this and do not agree with the decision, you may ask a solicitor to file a demand for mediation with the arbitration office – SMAC (Servicio de Mediación, Arbitraje y Conciliación) within 20 days upon receipt of the dismissal letter.
In this way, both sides may possibly reconcile, but it will involve a couple of visits to the office (the nearest one to La Zenia is in Elche) and a lot of paperwork and expense.
If this fails then you are entitled to bring a lawsuit before the Labour Courts, which are different from the general Courts, where civil and criminal cases are held. Again this is more expense, but if a Judge considers that the employer’s decision is justified and proved, the employment contract is terminated without any compensation.
If they consider that it is an unfair dismissal, your employer will have to pay and either compensate you or re-employ you.
Other matters
The usual working week in Spain is 40 hours, but this can vary with the profession. Daily working hours are limited to 9 hours work per day, with a minimum of 12 hours’ rest between working days.
Overtime is restricted by law to 80 hours per year unless there is a special agreement for that particular profession. You must be compensated, either in cash or by paid time off in lieu.
Paid holiday is 30 calendar days unless again a special agreement for that particular work has been agreed.
Practicalities
What do you do if an employer is not providing you with a proper contract, or if you think they are not paying social security for you, or refuse to give you evidence that you have been paid?
In truth, there is very little you can do if you do not want to try to find alternative employment. The best advice is to sit down with the person responsible for this type of thing, justify and explain what an asset you are, and that you do not want to be working illegally. However, in the end, if will be your own decision what you should do.
If you have received a work contract, are you receiving payslips, then please keep them safe. If you wish us to help with a labour claim, then we need please a copy of the contract, payslips or copy cash receipts and any emails between you and the company regarding the situation, or copy Whatsapps, as well as a copy of any dismissal letter. Please do not forget there are only 20 days to submit an appeal to an unfair dismissal.
If you go to the police, they will not take you seriously with a labour problem, as the proper way to handle it is as above, but of course, it is always best avoided at the start.
95 Comments
Yasmin
Hi
I have been registered autonomo in Spain. My manager has unfairly dismissed me and is refusing to pay me for work done.please advise. Do they need to pay me immediately as she said i must wait till end of month