Employment Agreement Adjustments in Spain

PTO, notice periods, bonuses, and more.

Updated on March 14th, 2023

Can we adjust the paid time off (PTO)?

Paid time off (PTO) can be adjusted via an addendum if your supported employee expressly agrees to the adjustment and as long as they receive the statutory entitlement, which is 23 working days.

Can we adjust working hours?

Working hours can be adjusted via an addendum. However, substantial modifications to working conditions can only be made when there are proven economic, technical, organizational, or production reasons.

Please note that your supported employee cannot agree to work more than 40 hours per week unless they are compensated overtime.

Can we remove the notice period?

No. If the notice period is not specified in the termination clause, it means that the statutory minimum prevails, which is 15 working days. In case a different notice period is preferred, please indicate that in your Onboarding Form.

Can we remove or increase the probationary period?

The probationary period can be removed, but it cannot be increased beyond the statutory limit (six months).

Can we add commissions, bonuses, or ad hoc payroll items?

Yes, your supported employees can receive commissions and bonuses. These compensation types can be added to the agreement. There is no limit for the amount that can be processed as a bonus, commission, or ad-hoc payroll item.

How can we offer equity or stocks to our supported employees?

In Spain, we offer you the option of issuing equity as either “nonemployee” or “employee” grants. Two conditions apply:

  • For clients that issue equity as “nonemployee” grants, we do not facilitate withholding and payroll reporting unless the award is cash settled
  • For clients that issue equity as “employee” grants, we do facilitate withholding and payroll reporting