Labour law in Spain: we help you hire without the guesswork

The moment you hire your first employee in Spain, a set of legal obligations starts on day one — not after a trial run, not once things feel more settled. Getting the contract, the registration, or the real cost wrong is far more expensive to fix afterwards than to get right from the start.

At Sol-4 Gestión, we handle hiring, payroll, and dismissals for foreign employers in Spain, not just the paperwork for your first employee, but the ones that follow it too.

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  • ✦25 years on the Costa Blanca
  • ✦English, Spanish and German
  • ✦Response within 24 hours
  • ✦2,500+ operations handled

What most foreign employers don't realize about hiring in Spain

Hiring in Spain isn't complicated because the law is unclear. It's complicated because the rules changed significantly in 2021, and a lot of advice online still reflects how things worked before that.

01
Common Problems

These are the situations we see regularly

None of this needs to catch you out when someone who does this regularly is checking it before you sign a contract, not after.

  • Assuming a temporary contract is the safer, more flexible option: since the 2021 reform, permanent contracts are the default, and a temporary one without a genuinely valid reason gets reclassified, with real cost attached.
  • Not registering an employee with Social Security before their first day: there's no grace period; it has to be done in advance, not once payroll is due.
  • Underestimating the real cost of an employee: employer social security contributions typically add somewhere around 30% on top of gross salary, not a token amount.
  • Treating a dismissal as a simple decision: one without solid cause or the correct procedure gets reclassified as unfair, and the compensation owed increases significantly.
  • Not checking the collective agreement that applies to your business: it can set higher minimum salaries and different conditions than the general law, and it applies whether you knew about it or not.
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02
What We Do Differently

What we do differently

We don't just tell you a contract is legal. We tell you whether it's the right one for what you actually need.

Spanish employment law depends heavily on the sector, the collective agreement, and the specific reason for hiring — get any of those wrong, and the contract itself becomes the problem.

  • We confirm which contract genuinely fits your situation. Not the one that sounds simplest, the one that holds up if it's ever challenged.
  • We register your employee before day one. So there's no exposure from the very start of the relationship.
  • We calculate the real cost of hiring before you commit. Not after the first payroll run surprises you.
  • We check the collective agreement that applies to your business. Not just the general law, which is often only the floor, not the actual rule.

Many employers only find out their contract was the wrong type, or that a collective agreement set different conditions, when a dismissal or an inspection is already underway. We check this before you hire, not after.

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How the process works: step by step

01

Initial consultation

We ask about the role, how long you expect to need it filled, and what sector your business is in, because that determines both the contract type and the collective agreement that applies.

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02

Choosing the right contract

We confirm whether the role calls for a permanent contract or genuinely qualifies for one of the limited temporary categories, and draft it to match.

03

Registering the employee and setting up payroll

We register the employee with Social Security before their first day and set up the payroll that will run every month from here.

04

Ongoing payroll and compliance

We run monthly payroll, file the corresponding Social Security contributions, and keep the mandatory working time record up to date.

05

Handling changes as they come up

Sick leave, parental leave, a change in hours — we handle the paperwork each of these triggers so it doesn't fall on you to track.

06

Managing a dismissal correctly, if it comes to that

If a role needs to end, we make sure the cause, the procedure, and the paperwork are solid, so the dismissal doesn't turn into a bigger cost than it needed to be.

What's included in our service

Confirming which contract type genuinely fits your situation

Not the one that sounds simplest — the one that holds up.

Checking the collective agreement that applies to your sector

Because it applies whether you knew about it or not.

Registering employees with Social Security before their first day

There's no grace period — done in advance.

Running monthly payroll and the filings that go with it

Payslips, Social Security contributions and withholdings handled every month.

Keeping the mandatory working time record up to date

Ready if a labour inspection asks for it.

Advising on and handling dismissals so the process protects you

Cause, procedure and paperwork solid.

Explaining the real cost of every hire before you commit

Not after the first payroll run surprises you.

Keeping you compliant as the rules change, not just at the point of hiring

Ongoing, as legislation updates.

Why Sol-4 Gestión

A contract that looks fine on day one can become expensive on the day it ends. We plan for both.

For over 25 years, we've handled hiring and payroll for foreign business owners on the Costa Blanca, alongside the company formation and tax filings that come with running a business here. We know where employment disputes usually start, because we've represented employers who found out the hard way.

We handle this alongside your company formation and tax filings. Hiring doesn't sit apart from the rest of running your business, and we don't treat it that way.

We handle this alongside your company formation and tax filings

Hiring doesn't sit apart from the rest of running your business, and we don't treat it that way.

We respond within 24 hours

An employment question left unanswered for days is exactly how a manageable situation turns into a dispute.

We explain every decision in plain English

So you understand the risk you're taking on before you take it.

We can handle the day-to-day remotely, without you needing to be in Spain for it

Frequently asked questions about labour law in Spain

Tell us your case.

We'll read it, we'll come back to you within 24 hours, and we'll tell you honestly whether we're the right people to help. No pressure, no commitment.

Email Us info@sol-4gestion.com
Call Us +34 966 71 51 81
Visit Us C/ Aneto 1, Local 3 - Box 52
Benimar I, Benijófar, Spain

We reply within 24 hours, Monday to Friday. Your information stays with the two partners who'll handle your case — never shared, never used for marketing.

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