Recruiting Top Talent in Spain

Top Talent

Recruitment can be a tricky business, especially when a company is venturing to unfamiliar countries and exploring new markets. This is where we come in to oversee the process for you – Bradford Jacobs’ expertise and over 20 years of experience in international recruitment services is indispensable for expansion into Spain.

Hiring the right talent in Germany to expand your company can result in a thriving business with numerous opportunities. However, the recruitment process can be complicated when you have no physical presence in Spain yet. Our PEO and EOR service can be the solution for your company.

Are you curious about the recruitment process in Spain? In this guide, we will share the ground rules of hiring and recruiting talent in Spain. Our comprehensive knowledge of all Spanish employment sectors and understanding of the culture and customs guarantees an untroubled transition.

The Recruitment Process in Spain

The first stage of making your company operational in Spain is recruiting the staff. It is vital to know where you can locate the best talent and who may be a perfect fit for your company’s plans.

Spaniards often follow an informal route to finding the jobs they want, through word of mouth, referrals, and of course social media. Despite relatively high unemployment, especially in the youth sector, compared with other European Union members there is still a call for candidates with specialist skills.

Sectors such as the automotive industry, pharmaceutical companies, IT enterprises and food manufacturing are always looking for candidates with the right qualifications and experience.

Foreign companies do not need to establish a local subsidiary to hire in Spain, but once the candidate has been selected, they must follow various procedures:

1. The hiring process must begin with negotiating the employment contract, typically an indefinite contract, and the precise contract must be drafted before work begins
2. Contracts must state the salary in euros and include precise details of compensation, benefits, termination clauses and any probation periods
3. Companies must register each employee with the social services and tax authorities
4. New contracts must be registered with the social security authority before employment and with the Public Employment Service within 10 days of starting work
5. Probationary periods are usually restricted to two months, except for companies with fewer than 25 employees (three months) and qualified technical staff (six months)

The recruitment process is time-consuming and requires dedication – a difficult task when faced with a host of other complicated issues involved in international expansion. By engaging Bradford Jacobs as your Employer of Record (EOR) we will provide all the answers. We will convert your expansion blueprint for Spain into an action plan with a few simple steps, including:

• Our legal entity in Spain ensures compliance with registration procedures, employment contracts, payroll, HR regulations, tax law and, where required, Spanish visas and work permits
• Bradford Jacobs deal with employee’s daily work records and any overtime or expenses and invoice you, the client
• Once paid, we deduct all withholding contributions for the Spanish tax and social security authorities and transfer them into the employees’ appointed social security accounts
• You retain operational control over your employee. Within days you have an international presence in a new territory, without risking the expense or stress of setting up a subsidiary or branch

Within a few days, your company has international presence in Spain – in a prime position to explore further expansion among other European markets without risking the expense or stress of setting up your own subsidiary or branch office in the country.

Checks you can make on Spanish Employees

• Immigration Compliance: Potential employers should require proof that foreign workers possess the correct documents permitting them to work in Spain.
• Criminal Records: Information regarding criminal records is protected under the Spanish Constitution and public disclosure is forbidden. Courts may allow disclosure for certain professions, such as public administration, financial institution managers and those working with minors. For certain roles, such as security guards, the applicant can provide a certificate proving they do not have a criminal record, but this cannot be retained by the employer.
• Discrimination: Interviewees and employees cannot be discriminated against on grounds of gender or sexual orientation, marital or social status, age within limits specified by law, ethnicity, religious or political beliefs, union membership or language within the Spanish state.
• Privacy: A combination of the Spanish Data Protection Act (2018) (SDPA) and the European Union’s General Data Protection Regulation (GDPR) applies protection for employees as to how their personal data is obtained or held by employers or ‘controllers or processors’ information. The SDPA tightened up basic requirements of the GDPR.

Permitted checks include:

• Verifying identity via ID or passport
• Checking CVs and educational qualifications with the applicant’s permission.
• References are usually supplied by previous employers directly to the candidate for them to forward to the new employer

Basic Facts on Hiring in Spain

• Employers and employees can agree on employment terms and conditions, but they must comply with minimum standards set out in state and regional laws and any collective bargaining agreements.
• Contracts can be verbal, though this is rarely the case, or in writing. They must be written up.
• Certain contracts must be in writing, such as short-term and temporary agreements and contracts for lawyers and executives.
• Contracts must stipulate salary, any supplementary payments and frequency of remuneration and holiday allowances.
• Contracts must be lodged with the Public State Employment Service within 10 days of coming into force.
• Any probationary period, up to a maximum of six months but more usually for two months, must be included in the contract.

• The main source of employment law in Spain is the Workers’ Statute, which defines respective rights of employer and employees, employment contracts, procedures for dismissal and collective agreements. Various statutory minimums are guaranteed. 
• In 2021, the national minimum wage in Spain remained fixed at € 1,108.3 (US$1,308) per month, equating to €13,300 (US$ 15,709) per year considering 12 payments per year.
• Sickness benefit depends on length of absence, with employers paying 60% for days four to 20 and the Institute of Social Security reimbursing the employer 75% thereafter.
• Employees must not average more than 40 hours a week over a year or exceed 80 hours overtime annually. Employers must keep daily records of employees’ hours for four years.
• Employees are entitled to a minimum 30 calendar days (22 working days) annually, with one vacation comprising a minimum of 14 days.
• Maternity/Paternity leave is for a minimum 16 weeks with a minimum six weeks taken after birth. From 2021 paternity leave is also 16 weeks.