Logo Guide to Business in Spain

Labor and social security regulations

In recent years, Spanish labor legislation has been evolving to become more flexible and modern. The main legislative changes have been designed to establish a labor law framework that contributes to the effective management of labor relations and facilitates job creation, as well as promoting job stability and entrepreneurial activity.

Also, a constant in recent years has been the approval of measures aimed at promoting the entry of foreign investment and talent into Spain and the modernization of legislation on cross-border posting of workers, bringing it into line with EU law.

On the other hand, the latest labor reform has modified the regime of fixed-term contracts (to simplify the variety contracts and reduce the temporality rate) and training contracts (to provide an ideal framework for the incorporation of the youth into the labor market) and has enhanced the use of the discontinuous permanent contracts.

Meanwhile, the Spanish labor and employment legislation has been including significant progress regarding social rights, equal treatment and opportunities in the labor market, and remote work.

Lastly, legislation relating to foreign enterprise and investment has also moved with the times, as shown by recent regulations governing work permits for digital nomads.