Labor & Social Security Law

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5. Labor and Social Security Law


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5.1. Labor Law

Basic Scheme:

Relevant facts:

  • Working hours are 40 per week.
  • 30 calendar days per vacation a year and 14 days for national holidays.
  • Contracts start by and indefinite employment agreement with a trial period.
  • Temporary contracts are considered as an exception but they in are widespread use.
  • For the purpose of reducing unemployment and promoting the recruitment,there are some bonuses in the Social Security ´s contributions made by the employers when recruiting unemployed workers, basically for those groups with great difficulties in finding a job, as young people between 16 and 30 years, people over 45 years and long term unemployed.

Currently, our system provides allowances for recruiting people between 16 and 30 years and people over 45 years who have been unemployed for at least 12 months, for training and apprenticeship contracts to young people, having recently completed their studies, whose contracts are converted into indefiniteduration contracts.

Likewise, recruitment is encouraged by cutting down on contributions made for the employer to the Social Security when recruiting replacement workers during periods of maternity leave, recruiting disadvantaged and disabled workers, and recruiting a replacement for workers early retired.

  1. Salary payment is divided in 12 monthly installments with two extra payments in summer and Christmas.
  2. For European citizens belonging to the EC no work and residence permit is required.
  3. For Non-EC citizens entry visa, residence and work permit is compulsory as well as a special working authorization in certain sector and activities.
  4. Termination of the labor relation may occur for the following reasons:
  • Worker´s resignation with a prior notice of 15 days.
  • End of a temporary agreement.
  • Dismissal of the employee.
  • Disciplinary dismissal.
  • Dismissal due to economic, technical or for reasons of organization or /and production.

In all the above mentioned situations existing regulation applies to economic compensation, as severance pay, or to legal matters as to solve conflicts.


5.2. Social Security

Relevant facts:

  • With part of the amount contributed by the companies, a Salary Guarantee Fund is set up to cover any compensations or salaries in case of closure or dismissals for economic reasons (above mentioned).
  • Such people who are not entitled to any benefit for several reasons may under certain circumstances be granted with a non contributory pension.
  • Self employees do have exactly the same benefits except unemployment coverage although it can be implemented, if that is the worker´s choice, with an increase in quota.
  • The special regime has some exceptions relating rights and amounts.


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