The Spanish labor market is characterized by the small number of labor disputes due to the possibility of negotiating collective labor agreements.

In the last decade, employing workers has become much more flexible and new incentives have been introduced to promote the hiring of people from certain social groups.

In June, 17, 2010, Royal Decree-law 10/2010, on urgent measures for the reform of the labor market, was published in the Oficial Gazette, with the purpose of contributing to the reduction of unemployment and to increase the productivity of the Spanish economy.

This chapter sets out the main types of employment contracts, rules governing senior executive contracts, payroll responsibilities when taking over a business and the social security system.

This chapter includes the following topics:

• Types of Contracts
• Incentives to promote employment
• Salary Costs
• Senior Management Contracts
• Acquisition of a Business
• Social Security
• Temporary Employment Agencies (ETT)
• Visas, Work and Residence Authorizations and Permits

Prepared by Garrigues

Last updated: 12|07|2010