Study guide: Employment Law and Contracts

Course Outline

  1. Employment Law Foundations
  2. Employment Relationship Requirements
  3. Sources and Principles of Labour Law
  4. Worker and Employer Rights
  5. Working Time and Scheduling
  6. Leave, Holidays and Vacations
  7. Employment Contract Essentials
  8. Employment Contract Types
  9. Contract Changes and Suspension
  10. Dismissal and Contract Termination

1. Employment Law Foundations

Key Concepts & Definitions

  • Labour law: The set of rules governing employment relationships between workers and employers.
  • Workersโ€™ movement: The struggle by workers to obtain better social, labour and economic conditions at work.

Essential Points

  • The Workersโ€™ Statute was established in 1980, and a new text in 2015 incorporated the modifications made over the years.

2. Employment Relationship Requirements

Key Concepts & Definitions

  • Employment relationship: The relationship between the person who performs work, the worker, and the person for whom it is performed, the employer.

Essential Points

  • An employment relationship requires work to be personal, voluntary and performed for another: the worker cannot be replaced at will, must not be coerced, and the employer owns the result and bears the costs, profits and losses.

๐Ÿ“Œ Special employment relationships meet the general employment requirements but need specific rules, whereas excluded relationships fail a requirement or are governed by their own regulations, such as civil servantsโ€™ rules.

3. Sources and Principles of Labour Law

Key Concepts & Definitions

  • Spanish Constitution: The most important rule in the Spanish legal system, binding public powers and citizens and establishing citizensโ€™ fundamental rights and freedoms.

โ˜… Must-know

๐Ÿ“Œ Material sources of labour law are the public institutions with authority to create rules, whereas formal sources are the rules those institutions create.

๐Ÿ“Œ Under the principle of normative hierarchy, a lower-ranking rule cannot contradict a higher-ranking rule.

  • The four labour-law principles are:
    • the minimum-standard principle
    • in dubio pro operario
    • the non-waivability of rights
    • the more-beneficial-condition principle

๐Ÿ“Œ When two rules apply to a labour dispute, the minimum-standard principle applies the rule more favourable to the worker.

Further detail

  • Spain belongs to the International Labour Organization and the European Union, both of which develop labour rules.

  • Under in dubio pro operario, a judge interpreting an ambiguous law interprets it in favour of the worker.

  • Workers cannot waive rights granted to them by rules.

  • Under the more-beneficial-condition principle, a worker retains more favourable contractual conditions even if a later law worsens them.

Memory Hook

Material sources create rules; formal sources are the rules created.

4. Worker and Employer Rights

Essential Points

  • Workersโ€™ basic rights include: the right to work and freely choose a profession, the right to join a union, the right to collective bargaining, the right to strike, the right to assemble, the right to information, consultation and participation at the enterprise

  • Rights arising from employment include: professional promotion and training, non-discrimination, physical integrity and workplace safety, respect for privacy, timely payment of agreed remuneration, individual exercise of employment-related claims

  • Workers must fulfil their job duties in good faith, observe adopted safety and hygiene measures, and follow employer instructions unless they are illegal, affect private life, undermine dignity or create a health risk.

  • Employers must pay wages, provide effective work, facilitate professional promotion and training, avoid discrimination, respect physical integrity and privacy, comply with workplace safety measures, and fulfil Social Security obligations.

5. Working Time and Scheduling

โ˜… Must-know

  • Working time is the time a worker spends doing their job each day; its duration is agreed by collective agreement or employment contract and cannot exceed an average of 40 hours per week calculated annually.

  • Under regular scheduling, the daily maximum is 9 hours, or 8 hours for workers under 18; the minimum rest between working days is 12 hours, or 7 hours for shift work.

  • Weekly rest is at least 1.5 uninterrupted days and may be accumulated over 14 days as 11 working days followed by 3 rest days; workers under 18 receive 2 uninterrupted, non-accumulable rest days.

  • Irregular scheduling varies weekly hours, remains within an average maximum of 40 hours per week and may cover at most 10% of annual working hours; minimum daily and weekly rest must be respected.

Further detail

๐Ÿ“Œ A continuous working day has no interruption, whereas a split working day is divided into two periods by an interruption.

๐Ÿ“Œ A break during a continuous working day is required when work exceeds 6 consecutive hours and must last at least 15 minutes; for minors, it is required after more than 4.5 hours and must last at least 30 minutes, and is unpaid unless a collective agreement says otherwise.

  • Since 13 May 2019, employers have had to record employeesโ€™ starting and finishing times, keep the records for 4 years and comply with data-protection law; failure to keep the record is a serious infringement.

6. Leave, Holidays and Vacations

โ˜… Must-know

๐Ÿ“Œ Annual paid vacation is at least 30 calendar days, is reduced proportionally if the worker does not work the whole year, and its dates must be communicated at least 2 months in advance.

Further detail

  • A worker is entitled to 15 calendar days of paid leave for marriage and 1 day for moving their usual residence.

  • Paid leave for the death of a relative up to the second degree is 2 days, or 4 days if travel is required; paid leave for the serious accident or illness, hospitalization, or qualifying surgery of such a relative is 5 days.

  • Other paid leave includes necessary time for public personal duties and prenatal examinations or birth-preparation techniques, and 4 days for each 3 months of temporary relocation.

  • Vacation duration cannot be reduced because of:

    • strike action
    • temporary incapacity
    • a worker sanction
    • birth or adoption leave

7. Employment Contract Essentials

Key Concepts & Definitions

  • Employment contract: A voluntary agreement in which a worker undertakes to provide services under an employerโ€™s organisation and direction in exchange for a salary.

โ˜… Must-know

  • The three essential elements are:
    • consent, meaning free agreement between the parties
    • an object consisting of work and salary that must be lawful, possible and determined
    • a cause consisting of the exchange of work for salary

๐Ÿ“Œ During a trial period, either party may end the contract without stating a cause or paying compensation, but no trial period may be set if the worker has already performed the same functions for that employer.

Further detail

๐Ÿ“Œ A worker may enter a valid contract at 18 or older, or from age 16 if legally emancipated, authorised by parents or guardians, or living independently with their consent.

๐Ÿ“Œ An employment contract may be written or verbal, but when it lasts longer than 4 weeks the employer must provide written information about its essential terms.

  • A written contractโ€™s minimum contents include: contract type and party identities, job, professional group and workplace, working time and its distribution, duration and start and expected end dates when applicable, any trial period, salary, supplements, extra payments and payment date, vacation duration, applicable collective agreement, additional clauses, place, date and signatures

Memory Hook

COC: Consent, Object, Cause.

8. Employment Contract Types

Key Concepts & Definitions

  • Temporary work agency: An organisation that hires workers to assign them temporarily to user companies; the worker contracts with the agency, which has a non-employment contract with the user company.

โ˜… Must-know

  • The three main contract models are:
    • indefinite contracts
    • fixed-term contracts
    • training contracts

๐Ÿ“Œ An indefinite contract has no end date and makes the worker a permanent employee, whereas a fixed-term contract has a clear, specific and valid temporary cause and an end date.

๐Ÿ“Œ Part-time work is a working-time arrangement, not a separate contract type, and may be fixed-term or indefinite; overtime is prohibited except in cases of force majeure.

Further detail

๐Ÿ“Œ If a workerโ€™s temporary contracts exceed 18 months within a 24-month period, the worker becomes permanent.

  • A production-circumstances contract for occasional, unforeseeable needs lasts at most 6 months, extendable to 12 months if the collective agreement provides for it, and carries compensation of 12 daysโ€™ salary per year of service or the proportional amount.

  • A production-circumstances contract for occasional, foreseeable and limited-duration needs, such as Christmas, may last at most 90 non-consecutive days per year and carries compensation of 12 daysโ€™ salary per year of service or the proportional amount.

  • A substitution contract covers a worker with a reserved job, fills another workerโ€™s reduced hours, or temporarily covers a position during selection; the selection-cover period is at most 3 months unless the collective agreement sets a shorter limit.

  • A training contract alternating work with training lasts at least 3 months and at most 2 years, has no trial period, and sets work time at no more than 65% of the applicable working time in year one and 85% in year two.

  • A professional-practice contract lasts at least 6 months and at most 1 year and must be entered within 3 years after studies end, or within 5 years for a worker with a disability.

9. Contract Changes and Suspension

Key Concepts & Definitions

  • Contract suspension: A temporary interruption of work for a statutory cause that ends the contractโ€™s work and pay obligations and generally preserves the right to return to the job.

โ˜… Must-know

๐Ÿ“Œ Functional mobility assigns different duties if the worker has the required qualifications and the change does not undermine the workerโ€™s dignity.

Further detail

  • Geographical mobility means requiring a worker to work at a centre different from the one stated in the employment contract; a collective transfer affects the whole centre and may be based on economic, technical, organisational or production reasons.

  • Substantial modifications may affect: working time, schedule, distribution of working time, shift-work arrangements, remuneration system or salary amount, work and performance systems, duties beyond the permitted limits of functional mobility

  • Suspension causes include mutual agreement, temporary incapacity, public office or union representation, pregnancy or breastfeeding risk, pre-trial deprivation of liberty, disciplinary suspension, strike, lawful business closure, gender-based violence, birth and care of a child, adoption and foster care.

  • Suspension for birth and care of a child lasts 16 weeks, and suspension for adoption or foster care lasts 16 weeks per parent.

  • A worker who establishes victim status for gender-based violence may suspend the contract for 6 months, extendable in 3-month periods up to a maximum of 18 months.

Memory Hook

Suspension pauses work temporarily; extinction ends the employment relationship.

10. Dismissal and Contract Termination

Key Concepts & Definitions

  • Contract extinction: The end of the employment relationship between the employer and the worker.

โ˜… Must-know

  • Disciplinary dismissal ends employment because of a serious and culpable breach; objective dismissal relies on specified individual grounds; and collective dismissal ends a significant number of jobs for economic, technical, organisational or production reasons.

  • Objective dismissal requires written notice 15 days in advance, compensation of 20 daysโ€™ salary per year of service up to 12 monthly payments, and 6 paid hours per week during notice to seek another job.

  • A worker has 20 working days from the dismissal date to challenge the dismissal in the labour court.

  • A justified dismissal is procedurally compliant and supported by the stated cause; an unjustified dismissal lacks proof of the cause or fails formal requirements; and a null dismissal is based on prohibited discrimination or violates fundamental rights and public freedoms.

  • For an unjustified dismissal, the employer may reinstate the worker and pay wages lost from dismissal to judgment notification, or refuse reinstatement and pay 33 daysโ€™ salary per year of service up to 24 months.

Further detail

  • Disciplinary-dismissal grounds include: repeated unjustified absence or lateness, indiscipline or disobedience, verbal or physical offences, sustained and voluntary reduction in performance, habitual intoxication or drug addiction, harassment on grounds of racial or ethnic origin, religion or beliefs, disability, age or sexual orientation

๐Ÿ“Œ Disciplinary dismissal must be communicated in writing by a dismissal letter stating the grounds, date, place and effective date.

  • Objective-dismissal grounds include: worker ineptitude discovered after the trial period, failure to adapt to technical changes, elimination of jobs for economic, organisational, technical or production reasons, insufficient budget allocation for public positions

๐Ÿ“Œ A null dismissal requires reinstatement and payment of processing wages from dismissal until notification of the judgment.

  • When the employer communicates contract termination, the employer must provide a proposed settlement; the worker may request a workersโ€™ representative and may sign while noting โ€œnot agreedโ€ or โ€œnot paidโ€ if uncertain.

Synthesis Tables

Dismissal outcomes

TypeGround or findingMain effect
Disciplinary justifiedSerious culpable breach provedNo compensation; unemployment benefit is available
Objective justifiedObjective cause and formal requirements established20 days per service year, up to 12 monthly payments
UnjustifiedCause unproved or formal requirements unmetReinstatement with lost wages or compensation
NullProhibited discrimination or fundamental-rights violationReinstatement and processing wages

Test yourself

Take a 32-question practice quiz on Employment Law and Contracts, with every answer explained.

1. What does labour law govern?

2. Which timeline correctly describes the Workersโ€™ Statute?

Take the quiz โ†’

Study with flashcards

Memorize the key concepts of Employment Law and Contracts with 74 flashcards.

What does labour law govern?

Employment relationships between workers and employers.

What is an employment relationship?

A relationship between a worker performing work and the employer for whom it is performed.

What makes work personal in an employment relationship?

The worker cannot be replaced at will.

See the flashcards โ†’

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