Employment contract under Spanish law (contrato laboral)

The contrato laboral is the Spanish-law agreement by which a company hires an employee under its direction and organisation. It sets the type of contract, pay structure, probation, working hours, severance, notice, and the rules on non-compete, IP and confidentiality, under the Workers' Statute (Estatuto de los Trabajadores).

Jurisdictions
Spain
Contract languages
Spanish, English

What it is and when it is used

A Spanish employment contract records the hiring of an employee who works for the company's account and under its direction, governed by the Workers' Statute (RDL 2/2015), the applicable collective agreement and Spanish labour law. According to Dealroom's current catalogue, the contract covers contract type (including fijo-discontinuo), pay, probation, working hours, the working-time registry (article 34.9 of the Workers' Statute), termination and severance, resignation notice, non-compete, IP, confidentiality and dispute resolution.

For employees under California or English law, see the employment agreement.

Who signs it and in which role

  • The Company (Empresa), identified by its tax number (CIF).
  • The Employee (Trabajador/a), identified by DNI or NIE.

The job title, salary amounts and other figures are set out in an Annex.

Key clauses

Contract type and pay

Indefinite, fixed-term for production circumstances, or training in alternation (working time capped at 65% of the maximum in year one and 85% in year two). Pay may be 14 payments (12 monthly plus extra payments in June and December), 12 payments with the extras prorated, or a fixed salary plus a variable component tied to written objectives, which counts as salary for all legal purposes.

Probation and working hours

Probation at the legal maximum, reduced to one month, or none. Hours may be full-time (40 hours a week in annual average, with minimum rest periods), part-time with the hours stated in writing, or flexible with remote work under Law 10/2021, which requires a separate remote work agreement and guarantees the right to digital disconnection.

Termination, severance and notice

Severance may be the legal minimum, enhanced (33 days per year for any involuntary termination), or an executive package (blindaje) with a fixed lump sum plus 12 months of private health insurance and outplacement. Notice may be 15 days, one month or three months.

Non-compete, IP and confidentiality

A non-compete is optional: the legal maximum with compensation, a 12-month covenant with proportional compensation, or none. IP may be assigned broadly, limited to the employee's job functions, or licensed non-exclusively while the employee keeps ownership. Confidentiality may be broad and indefinite, standard for two years after employment, or limited to trade secrets.

Dispute resolution

The labour courts after mandatory conciliation before the SMAC, mediation first, or labour arbitration where regulations and the collective agreement permit it.

What the two sides usually negotiate

The company tends to prefer a fixed-term contract, maximum probation, the legal minimum severance, a variable pay component and broad IP and confidentiality terms. The employee prefers an indefinite contract, no probation, flexible remote work, enhanced or executive severance and a licence model for IP. Dealroom's middle ground is 12 prorated payments, a one-month probation, full-time hours, enhanced severance, a limited IP assignment and two-year confidentiality. On contract type, notice, the non-compete and disputes no option is fully neutral; the moderate non-compete and one-month notice sit closest to the middle.

Jurisdictions and languages Dealroom supports for it

Spanish law only (Spain). The contract can be drafted in Spanish or English.

Common mistakes

  • Misusing temporary contracts. They need a real legal cause; exceeding the maximum duration makes the employee indefinite.
  • Probation for someone who already did the job in the company: it is void.
  • A non-compete without adequate compensation, or with no real business interest: it is void.
  • Remote work without a written agreement where it exceeds 30% of working time over three months.
  • Ignoring the collective agreement, which can change pay minimums, extra payments and probation.
  • Waiving non-waivable rights: the employee cannot give up rights the Workers' Statute or the collective agreement make mandatory.

Frequently asked questions

What types of employment contract exist in Spain?

Since the 2021 labour reform (RDL 32/2021) the indefinite contract is the default. Temporary contracts are limited to production circumstances (up to 6 months, extendable to 12 by collective agreement) or substitution, and training contracts follow article 11 of the Workers' Statute. Dealroom offers indefinite, fixed-term and training-in-alternation contracts.

How long can a probation period be in Spain?

Under article 14 of the Workers' Statute, up to 6 months for qualified technical staff and 2 months for other employees (3 months in companies with fewer than 25 workers). It must be agreed in writing, and it is void if the employee already performed the same functions in the company.

What severance does Spanish law require?

The statutory minimum is 20 days' salary per year of service for objective dismissal (capped at 12 months' pay) and 33 days per year for unfair dismissal (capped at 24 months). A lawful disciplinary dismissal carries no severance. A fixed-term contract pays 12 days per year on expiry. The contract may improve these amounts.

Is a non-compete valid in a Spanish employment contract?

Only if the employer has a genuine industrial or commercial interest and pays adequate compensation, for up to 2 years for technical staff and 6 months for others (article 21.2 of the Workers' Statute). Without adequate compensation the covenant is void.

Two ways to make it

Create it in Dealroom

Choose the jurisdiction and language, answer a few questions and negotiate each clause with the other side, or prepare it alone.

Start in Dealroom

Have your agent draft and negotiate it

Your AI agent can read the clause library and create the contract through the agent API or the MCP server. A short example:

MCP: list_templates (query: "CONTRATO_LABORAL"), get_template, create_playbook, initiate_negotiation.

Read the agent API guide
# 1. Read the clauses, options and the facts it needs
curl https://dealroom.todo.law/api/v1/agent/templates/CONTRATO_LABORAL \
  -H "Authorization: Bearer drk_YOUR_KEY"

# 2. Create the contract (clauses you leave out take the default option)
curl -X POST https://dealroom.todo.law/api/v1/agent/deals \
  -H "Authorization: Bearer drk_YOUR_KEY" \
  -H "Content-Type: application/json" \
  -H "Idempotency-Key: $(uuidgen)" \
  -d '{
    "schema": "dealroom.solo-intake/1",
    "contractType": "CONTRATO_LABORAL",
    "governingLaw": "SPAIN",
    "language": "en",
    "dealName": "Example CONTRATO_LABORAL",
    "selectionPolicy": "defaults"
  }'

Drafting and negotiating are free.

Related contracts

This page explains how the contract usually works. It is general information, not legal advice.

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