Editorial transparency and use of artificial intelligence
This article forms part of the CostaLuz Lawyers blog and is published for general informational and educational purposes only. It was prepared with the assistance of artificial intelligence tools and, before publication, was substantively reviewed and editorially approved by Maria de Castro, a Spanish-qualified lawyer registered with the Cádiz Bar Association under number 2745, founder of CostaLuz Lawyers and the person responsible for the editorial review of the published content.
This article does not constitute legal, tax, immigration, employment, estate-planning or investment advice and does not replace an individual assessment and the professional work of the appropriate CostaLuz Lawyers specialist. No action or omission should be based solely on this information.
Last updated: October 2025
Full legal, HR, payroll and immigration support for employers operating in Spain.
What we do: We help international and Spanish employers hire, pay, manage and restructure teams in Spain—compliantly and efficiently. Service provided fully in English by a multidisciplinary team (employment lawyers, HR, payroll, tax, immigration).
2025 Snapshot: What matters now
- Greater scrutiny on workplace time tracking, remote/hybrid arrangements, and overtime.
- Ongoing focus on temporary vs. indefinite contracts, contractor misclassification, and platform work.
- Collective bargaining coverage remains extensive; sector agreements matter for pay bands, hours, and benefits.
- Digital onboarding and e-signatures more common, but documentation standards remain strict.
- Increased attention to psychosocial risk assessments and whistleblowing channels.
Who this service is for
- Foreign companies hiring their first employees in Spain
- Spanish entities scaling headcount or reorganising teams
- Startups using Spain as an EU hub (hybrid/remote)
- Employers shifting contractors to employment contracts
- Organisations needing works council or union engagement support
- Companies running cross-border assignments into/out of Spain
What our Employment Consultancy covers
- Hiring & Contracts: role scoping, contract types (indefinite/temporary/fixed-project), probation, IP/confidentiality, non-competes (where lawful).
- Policies & Handbooks: working time, remote/hybrid, leave, benefits, code of conduct, DEI, data protection at work.
- Payroll & Social Security: registrations, contributions, payslips, benefits-in-kind, time tracking and overtime rules.
- Compensation & Benefits: salary bands, variable pay, equity/phantom plans alignment with Spanish rules.
- Immigration for Talent: HQP permits, intra-company transfers, digital-nomad employees, family members.
- Collective Bargaining & Unions: sector agreement mapping, works council elections, consultation processes.
- Health & Safety (PRL): compliance set-up, risk assessments (including psychosocial), training.
- Discipline & Termination: performance management, dismissals (objective/disciplinary), redundancy (ERE/ERTE), settlement agreements.
- Audits & Investigations: HR/legal audits, whistleblowing channels, internal investigations, remediation plans.
- Cross-Border & Remote: multi-country setups, employer of record (advisory), posted workers, tax/social security coordination.
How we work (step by step)
- Discovery call – goals, roles, timelines, risks.
- Compliance map – applicable sector agreement, contract type, payroll and HR stack.
- Documentation – contracts, addenda, policies, consents, privacy notices.
- Implementation – registrations, payroll go-live, onboarding flow, training.
- Operations support – monthly payroll QA, leave/overtime tracking, issue handling.
- Change & exits – reorganisations, consultations, settlement templates, litigation strategy if needed.
Deliverables you can expect
- Employment contract suite (EN/ES) + policy pack
- Sector agreement summary relevant to your roles
- Payroll calendar and compliance checklist
- Onboarding/offboarding playbooks
- Manager toolkits (performance, discipline, investigations)
- Immigration route memo (if applicable)
Pricing
Pricing depends on scope (headcount, sectors, immigration, timelines).
We provide a written proposal with fixed fees where possible and clear deliverables.
FAQ: Employment in Spain (2025)
Do we need a Spanish entity to hire?
Usually yes. Employer-of-record (EOR) is possible short-term, but many companies move to their own entity for control and cost.
Which contract type is safest?
Indefinite contracts are the default. Temporary/fixed-project contracts require strict justification and documentation.
Can we keep someone as a contractor?
Only if they meet true self-employment criteria. Misclassification can trigger back pay, social security and penalties.
How does remote/hybrid work affect us?
You need a written remote-work agreement, equipment/expense terms, time tracking, and health & safety coverage of the home workspace.
Do we have to apply a collective bargaining agreement (CBA)?
In most sectors, yes. The applicable CBA sets minimum pay, hours, categories and some benefits.
What about probation periods?
Allowed within CBA and statutory limits; must be in the contract and applied consistently.
How is overtime managed?
Time tracking is mandatory. Overtime limits, compensation or time-off are often defined by the CBA.
Can we grant equity to Spanish employees?
Yes, but design matters (taxation, vesting, good/bad leaver). We align plans (or phantom equity) with Spanish rules and your global plan.
How do dismissals work?
Process and evidence are key. Objective vs. disciplinary grounds have different requirements and severance rules. Many cases close via settlement.
Do you handle payroll and day-to-day HR?
We set up and supervise payroll with trusted providers, provide monthly legal QA, and act as your external employment legal/HR desk.
Can you support internal investigations and whistleblowing?
Yes. We implement compliant channels, run or guide investigations, and produce defensible reports.
What immigration routes exist for hires?
Highly Qualified Professional permits, intra-company transfers, EU Blue Card, and digital-nomad options—case-by-case eligibility.
Do you train managers on Spanish employment basics?
Yes. We run concise training on contracts, time, performance, discipline and documentation.
Case Study (2025)
US fintech opening a team in Madrid (18 hires in 6 months).
We mapped the sector CBA, built an English/Spanish contract and policy pack, set up payroll/social security, trained managers, and guided two HQP visas. Outcome: on-time hiring, clean payroll audits, and zero disputes in the first year.
Start your Spain employment setup
Tell us your hiring plan (roles, timing, remote/hybrid). We’ll map the CBA, contract types, payroll and immigration steps, and deliver a clear, personalised quote plan where possible.
Book an initial consultation to launch or optimise your Spain employment operations—compliant, scalable, and manager-friendly.
Legal Notice: The content on this page is provided for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. No action should be taken based solely on this content without first seeking independent professional legal counsel. Each case requires individual assessment based on its specific circumstances. CostaLuz Lawyers accepts no liability for actions taken or not taken based on this content.
Need legal help in Spain?
Our bilingual lawyers help foreign residents with property, tax, inheritance and residency. Bilingual help across southern Spain since 2006.