The Spanish labor market has been characterized in the last years by the approval of different regulations in order to adopt measures according to the special economic circumstances. In this scenario, Law 35/2010, of September 2010, on Urgent Measures to Reform the Labor Market has been approved. The Reform is aimed for establishing measures for the contributions to the reduction of unemployment and the increase of the productivity of the Spanish economy, focusing on the following guidelines:

• 1. Reducing the duality of the labor market, promoting the creation of stable and qualified employment.
• 2. Reinforcing the instruments of internal flexibility in the development of labor relationships, and in particular, the measures of temporary reductions of working hours, as a mechanism that allows the maintenance of the employment during economic crisis, against measures of destruction of employment.
• 3. Helping unemployed workers, particularly youths, reorganizing Social Security benefits and promoting formative contracts, improving labor intermediation mechanisms.

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: 14|03|2011