Spanish Employment Contracts: Elements and Types
Spanish Employment Contract Essentials
Key Elements of Employment Contracts
The fundamental rules of a contract require:
- Consent of the contracting parties.
- A certain object which is the subject of the agreement.
- The cause of the obligation established.
Consent
Consent is manifested by the coincidence between the offer and the acceptance regarding the thing (objeto) and the cause (causa) which are to constitute the contract. Persons who cannot legally give consent include non-emancipated minors and legally incapacitated persons.
Cause (Causa)
In contracts for valuable consideration (contratos onerosos), the supply or promise of a thing or service by the other party is deemed to constitute the cause applicable to each contracting party. Contracts without a cause or with an unlawful cause shall have no effect whatsoever. Even if the cause is not expressed in a contract, it is presumed to exist and to be lawful.
Formality and Requirements
Spanish Labor Law generally allows for freedom of form when making a contract. Employment contracts can be verbal or written. However, as an exception to this freedom, certain employment contracts must be in writing.
Within two months of the commencement of employment, the employer must provide the employee with the following information in writing:
- Identification of the parties to the employment relationship.
- Date of commencement and expected duration (if temporary).
- Place where the work is to be performed.
- Professional group or category of the job.
- Base salary and any other compensation.
- Total working hours (daily, weekly, or annual).
- Total number of annual holidays.
- Notice periods required for termination by employer and employee.
- The applicable collective bargaining agreement.
Types of Spanish Employment Contracts
Indefinite Contracts
This is the standard type of employment contract with no pre-defined end date. If an employee continues working past the original term specified in a temporary agreement, the relationship automatically becomes indefinite, and the employee becomes entitled to standard severance upon termination.
Temporary Contracts
These contracts are used for specific, time-limited situations:
Specific Service Agreements (Contrato por obra o servicio determinado)
Used to hire employees to perform a specific, defined task or service with a foreseeable end date. The agreement terminates when the task is completed.
Extraordinary Production Agreements (Contrato eventual por circunstancias de la producción)
Used in situations where market circumstances, an unexpected workload, or an accumulation of orders require a temporary increase in the workforce. The maximum duration is typically 6 months within a 12-month period, though collective agreements may modify this.
Interim (Replacement) Agreements (Contrato de interinidad)
Used for two main purposes:
- To temporarily replace employees who have the right to reserve their job while absent (e.g., maternity leave, extended illness).
- To temporarily fill an open job position while a recruitment process is underway (maximum duration of 3 months in this case). Example: hiring a substitute teacher.
Training Contracts
There are two types of training contracts, both with a definite fixed duration and permitted only for training purposes:
On-the-Job Training Agreements (Contrato en prácticas)
The purpose is to allow employees holding a university degree, vocational training qualification, or equivalent certificate to gain practical experience in their field. These can typically be entered into within the 5 years following the completion of their studies.
Work-Study Agreements (Contrato para la formación y el aprendizaje)
The purpose is for employees (usually younger individuals) to acquire the necessary theoretical and practical training to perform a specific job or trade that requires a certain level of qualification. It combines paid work with formal training.
Part-Time Contracts
Standard Part-Time Agreements (Contrato a tiempo parcial)
These are contracts for employees who work fewer hours per day, week, month, or year than a comparable full-time employee in the same company and role.
Special “Relief” Part-Time Agreements (Contrato de relevo)
This is a specific part-time agreement entered into with an unemployed individual (or someone with a temporary contract in the company) to substitute part of the working hours of another employee who is entering “partial retirement”. The partially retiring employee reduces their hours and receives a proportional part of their retirement pension.
An employee working full-time can reduce their working hours by 25% to 75% (or up to 85% in specific cases) and partially retire if they qualify. Simultaneously, the company hires another employee on a part-time “relief” contract. The relief agreement can have an indefinite duration or can be entered into for the time remaining until the partially retired employee reaches the official retirement age, at which point the relief worker’s contract may become indefinite if they continue.