Welcome to the Employer of Record EOR Services Spain
Le Cheminant International's Partner in Spain provides recruitment and provision of temporary personnel as well as Employer of Record services. The Head office is in Madrid.
The company has 15 employees in Madrid but has a further 175 employees seconded to clients on an « Employer of Record » basis. It has 35 clients.
The Le Cheminant Partner in Spain - Services
EMPLOYER OF RECORD
Our Employer of Record (EOR) Services are the solution to help to expand your business in Spain, where we become legally responsible for the administrative process of hiring and employing your employees.
An EOR acts as an intermediary between your employees and your company. Instead of having to establish a local structure, which can imply substantial costs: or having to deal with a foreign country employment law, which can be confusing (and legal changes can occur relatively quickly) a trusted partner can become your Employer of Record and save you time and money.
As your EOR Partner, we deal with payment, taxes, insurance, vacation records, employment certificates, and every other aspect related to your company’s workers. Our service lets you manage your time in an efficient way and forget about possible changes of Spanish law.
Our company has the infrastructure in Spain to provide an agile and efficient in-country administration services, specifically onboarding, managing and paying employees. With full compliance, advice and risk-free services, we are internationally certified and audited by SGS in Quality Certification ISO 9001 and ISO 14001 for Environmental Managements Systems.
EMPLOYMENT PROCESS
Employees receive a written contract that will always be approved in advance by the client, before being sent to the potential employee. The contract is signed with a digital signature. The client will be alerted when the probationary period is nearing its end.
PAYROLL PROCESS
The Payroll is processed on a monthly base. The pay period runs from the first day of the month through the last. Payments to the employees are made no later than the last day of the month. Payments of tax and social security and to other benefit providers are paid on a strict schedule.
MAXIMUM SOCIAL SECURITY SALARY BASE
. (Compare this to France, Sweden or UK for instance where there is no salary limit).
With effect January 1st, 2024, a new maximum salary of €4720.50 per month has been established, (up (previously it was €4,495.50 in 2023).
WAGE INFORMATION/ WORKING TIME
Standard hours are 40 hours/week. Overtime is limited to 80 hours per year.
VACATION / HOLIDAYS (Permanent Contracts)
All employees in Spain are entitled, at least, to 23 working days + 14 public holidays per year : You can check the public holidays of your city in the following link: https://www.calendarioslaborales.com/
MATERNITY, PATERNITY, BREASTFEEDING benefits (Mandatory per law) ï Maternity / Paternity 16 weeks + 2 weeks when multiple birth. In the coming months, it is expected to be extended to 20 weeks (pending approval). The salary is paid by Public Administration, not the employee. ï Breastfeeding: 15 labor days. Salary Paid by the Company.
OTHER FREQUENT BENEFITS (Not statutory, charged with S.S costs)
Health Insurance
Ticket Restaurants
Retirement Benefits
Flexible (cafeteria style) Benefits
Cars
TYPES OF CONTRACT IN SPAIN
- Fixed Term Contract (Temporary Contract) “Contrato por Circunstancias” In Spain, Fixed Term Contracts “Contratos por Circunstancias” have a maximum length of 6 months that can be renewed for another 6 months (maximum length of 1 year). The Probationary Period length is limited to 3 months. There is an indemnity of 12 days per year of service payable at the end of the contract and there is a penalty of 3% of the total remuneration paid over the employment period, payable to the employee when the contract is finally finished.
- Permanent Contract or “Open Ended Contract” (Contrato Indefinido). The Probationary Period can be up to 6 months maximum. The notice to be given to end the contract is usually 15 to 30 days- it varies according to the collective agreement for the industry involved.
END OF SERVICE INDEMINITIES
With an open ended contract if the employee is dismissed (fired) there is a severance to be paid. This severance has to be paid at the end of the relation with the worker. It is calculated as 33 days’ salary for each year of service completed until the termination date). Severance compensations are tax free, capped at €180,000, provided that the parties ratify the settlement agreement before an official body (Conciliation Chambers).