Permanent Employment Contract Spain (Contrato Indefinido)

A Permanent Employment Contract Spain (Contrato de Trabajo Indefinido) is a formal written agreement between an employer (empresario) and an employee (trabajador) in Spain establishing an open-ended employment relationship with no predetermined end date, governed principally by the Estatuto de los Trabajadores (Real Decreto Legislativo 2/2015, de 23 de octubre) and the Constitución Española 1978 Article 35, which guarantees the right to work under dignified conditions. The Contrato Indefinido is the default and legally preferred form of employment contract in Spain — Article 15.1 of the Estatuto de los Trabajadores establishes a presumption that employment contracts are concluded for an indefinite period unless a specific temporary cause can be justified under Article 15 paragraphs 2 through 9.

The Estatuto de los Trabajadores (ET) is the cornerstone statute governing the employment relationship in Spain, consolidating workers' rights including minimum wage (salario mínimo interprofesional — SMI), maximum working hours of 40 hours per week under Article 34 ET, paid annual leave of 30 calendar days under Article 38 ET, and protections against unfair dismissal under Articles 51 through 56 ET. The ET was substantially reformed by the Real Decreto-Ley 32/2021, de 28 de diciembre (Labour Reform 2021), which strengthened the presumption of indefinite contracts and restricted the use of temporary contracts, making the Contrato Indefinido even more significant for Spanish employers.

All employees working in Spain must be registered with the Tesorería General de la Seguridad Social (TGSS) before beginning work, through the employer's Código de Cuenta de Cotización (CCC). Social security contributions are split between employer and employee — the employer contributes approximately 29.9% of the gross salary and the employee contributes approximately 6.35%, covering contingencias comunes (common contingencies: illness, maternity, retirement), desempleo (unemployment), formación profesional (professional training), and FOGASA (Fondo de Garantía Salarial — wage guarantee fund) under the Ley General de la Seguridad Social (Real Decreto Legislativo 8/2015).

Spain's payroll tax obligations require employers to withhold income tax (IRPF — Impuesto sobre la Renta de las Personas Físicas) from employee salaries under Ley 35/2006 del IRPF, and report to the Agencia Estatal de Administración Tributaria (AEAT) via monthly or quarterly Modelo 111 declarations and annual Modelo 190 summaries. The withholding rate depends on the employee's personal circumstances, salary level, and declarations filed with the employer under Modelo 145.

The Contrato de Trabajo Indefinido must be registered with the Servicio Público de Empleo Estatal (SEPE) within 10 days of execution under Article 16.1 of the Estatuto de los Trabajadores and Royal Decree 1483/2012. The contract must be provided to the employee in writing upon signature, and a copy filed through the SEPE's electronic platform (Contrat@ system) or at the local Oficina de Empleo. Collective bargaining agreements (convenios colectivos) applicable to the employer's sector and geographic area supplement the ET's minimum standards — salary scales, additional benefits, and specific working conditions in the applicable convenio must be respected and often exceed the statutory minimums.

Termination of a Permanent Employment Contract in Spain requires a legally justified cause. Dismissal (despido) may be disciplinary (despido disciplinario) under Article 54 ET — for serious misconduct — or objective (despido objetivo) under Article 52 ET — for economic, technical, organisational, or production causes — requiring 20 days' severance pay per year of service (up to 12 months' salary) and 15 days' notice. Unfair dismissal (despido improcedente) entitles the worker to 33 days' salary per year of service up to 24 months' salary, under Article 56 ET as reformed in 2012. Employment disputes are resolved before the Juzgado de lo Social after mandatory SMAC (Servicio de Mediación, Arbitraje y Conciliación) conciliation proceedings under Article 63 of the Ley Reguladora de la Jurisdicción Social (Ley 36/2011).

A Permanent Employment Contract Spain is required whenever a Spanish employer engages a worker in an open-ended employment relationship — the Estatuto de los Trabajadores Article 8.2 requires that employment contracts be put in writing when the duration exceeds four weeks, when the worker is employed part-time, when the worker is posted abroad, or when the worker expressly requests it.

A Contrato Indefinido is needed when a Spanish business (sociedad limitada, sociedad anónima, autónomo, or other entity) hires a worker for ongoing duties that are part of the company's ordinary and permanent activity. Under the 2021 Labour Reform (Real Decreto-Ley 32/2021), temporary contracts may only be used for specific legally defined causes — for all other hires, the Contrato Indefinido is mandatory.

A Permanent Employment Contract is required when an employer converts a temporary contract to permanent status — a conversion that generates a government incentive (bonificación) administered by the TGSS for certain worker categories, including workers over 52 years of age, long-term unemployed persons, and workers with disabilities registered at the Servicio Público de Empleo Estatal (SEPE).

A Contrato Indefinido is needed for apprenticeship and training contracts (contratos de formación en alternancia) that transition to permanent employment upon completion of the training period, as encouraged by the 2021 Labour Reform to combat Spain's high youth unemployment rate (tasa de paro juvenil).

A Permanent Employment Contract is required when a company hires workers through a Empresa de Trabajo Temporal (ETT) under Ley 14/1994, and the assignment period ends but the company wishes to retain the worker on a permanent basis — the ETT assignment contract must be converted to a direct Contrato Indefinido.

A Contrato de Trabajo Indefinido is needed when an employer wishes to offer a part-time permanent contract (contrato indefinido a tiempo parcial) under Article 12 ET — employees working fewer than the standard 40-hour week but in a continuing relationship — which requires specific mention of the agreed number of hours and their distribution in the written contract.

The contract is also required when a foreign national authorised to work in Spain under a work permit (autorización de trabajo y residencia) issued under Ley Orgánica 4/2000 de Extranjería takes up permanent employment — the Contrato Indefinido serves as supporting documentation for residence and work permit renewals processed through the Subdelegación del Gobierno or Delegación del Gobierno in the relevant autonomous community.

Under the Estatuto de los Trabajadores (ET) RDL 2/2015, Spanish employment law governs contracts, dismissals, and working conditions. The Tesorería General de la Seguridad Social (TGSS) administers social security contributions. The Servicio Público de Empleo Estatal (SEPE) manages unemployment benefits. The Inspección de Trabajo y Seguridad Social enforces labour compliance. The Juzgados de lo Social hear employment disputes under the Ley Reguladora de la Jurisdicción Social (Ley 36/2011).

A valid Permanent Employment Contract Spain under the Estatuto de los Trabajadores (RDL 2/2015) must contain the following essential elements to be enforceable and to satisfy registration requirements with the SEPE and TGSS.

Identification of Parties: Full legal name, DNI/NIE/passport number, and registered address of both the employer (empresario) and the employee (trabajador). Where the employer is a legal entity (sociedad limitada or sociedad anónima), the company's NIF (Número de Identificación Fiscal) assigned by the Agencia Tributaria, the Registro Mercantil registration number, and the name of the legal representative signing the contract must be included.

Job Position and Professional Category: The specific job title (puesto de trabajo) and the professional group (grupo profesional) as defined by the applicable sector convenio colectivo. Article 22 of the Estatuto de los Trabajadores requires that workers be classified into professional groups based on their competencies, duties, and responsibilities, and the classification directly affects minimum salary entitlements under the applicable convenio.

Work Location: The workplace address (centro de trabajo) and, where applicable, the geographic mobility provisions (movilidad geográfica) under Articles 39 and 40 ET. Remote work arrangements must comply with Ley 10/2021 de Trabajo a Distancia, which requires a specific written remote work agreement (acuerdo de trabajo a distancia) in addition to the employment contract.

Start Date and Probationary Period: The contract start date (fecha de inicio) and the agreed probationary period (período de prueba) as permitted under Article 14 ET — up to 6 months for qualified technicians, up to 2 months for other workers (or 3 months in companies with fewer than 25 employees). During the probationary period, either party may terminate without notice or compensation.

Salary and Pay Structure: The agreed gross annual salary (salario bruto anual) broken down into base salary (salario base) and any supplements (complementos salariales) — attendance, productivity, seniority (antigüedad), or transport allowances. The salary must equal or exceed the minimum wage floor established in the applicable convenio colectivo and must never fall below the national salario mínimo interprofesional (SMI) set annually by Royal Decree.

Working Hours and Schedule: The number of weekly working hours (jornada laboral) — maximum 40 hours under Article 34 ET — the daily schedule, and the distribution of working time. For part-time contracts, the specific hours and their weekly distribution must be stated with precision. Overtime (horas extraordinarias) provisions and their compensation method (monetary payment or compensatory rest) must be addressed.

Annual Leave: The minimum 30 calendar days of paid annual leave per year under Article 38 ET, with the specific leave schedule or the procedure for agreeing it. Additional leave days under the applicable convenio colectivo must also be referenced.

Applicable Collective Bargaining Agreement: Identification of the sector convenio colectivo that applies, its geographic scope, and the employer's registration with the corresponding employer association (asociación empresarial). The convenio colectivo supplements the ET with sector-specific conditions — minimum salary tables (tablas salariales), overtime rates, special leave, and additional benefits.

Data Protection: A GDPR-compliant data protection clause under Reglamento (UE) 2016/679 (RGPD) and Ley Orgánica 3/2018 (LOPDGDD) — informing the employee of the processing of their personal data by the employer, the legal basis (performance of the employment contract under Article 6.1(b) RGPD), the data retention period, and the employee's rights to access, rectification, erasure, and objection managed through the Agencia Española de Protección de Datos (AEPD).

Severance and Termination: A reference to the applicable severance provisions — 20 days per year of service for objective dismissal under Article 53 ET and 33 days per year of service (up to 24 months) for unfair dismissal under Article 56 ET. The dispute resolution mechanism — mandatory SMAC conciliation under Ley 36/2011 before the Juzgado de lo Social — should be referenced.

Forms-legal.com provides this Permanent Employment Contract Spain template as a practical starting point. Every employment contract should be reviewed by a qualified abogado laboralista (employment lawyer) or gestor laboral to confirm compliance with the applicable convenio colectivo, autonomous community legislation, and the specific circumstances of the employment relationship.

Under the Estatuto de los Trabajadores (ET) RDL 2/2015, Spanish employment law governs contracts, dismissals, and working conditions. The Tesorería General de la Seguridad Social (TGSS) administers social security contributions. The Servicio Público de Empleo Estatal (SEPE) manages unemployment benefits. The Inspección de Trabajo y Seguridad Social enforces labour compliance. The Juzgados de lo Social hear employment disputes under the Ley Reguladora de la Jurisdicción Social (Ley 36/2011).