How temporary work agencies work in Spain

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1. A temporary work agency hires workers and assigns them temporarily to other companies. Only duly authorized agencies may carry out this activity.
2. Operating requires prior administrative authorization, with requirements such as working only in this activity, having no pending tax or Social Security debts, and including the words "empresa de trabajo temporalEmpresa de trabajo temporal Temporary work agency: a company that hires workers to assign them temporarily to other companies." in the company name. The authorization lasts one year and is renewed twice; after three years of activity it is granted without a time limit.
3. Agencies must provide a financial guarantee (a deposit or a bond) to cover wage and Social Security debts. For the first authorization it equals twenty-five times the annual minimum wage; afterwards, 10% of the previous year's total payroll.
4. The supply contract links the temporary work agency with the user company to assign a worker. It can only be used in specific cases, such as work of uncertain duration, excess orders, or replacing workers with the right to keep their job. It is banned to replace striking workers or to fill especially dangerous jobs.
5. If the worker keeps working at the user company after the term ends, that company is considered to have hired them on a permanent basis. Any clause forbidding the user company from hiring the worker when the contract ends is void.
6. Workers have the right to the wage set by the applicable collective agreement, including extra payments, holidays and vacation, plus compensation of twelve days of wages per year when the contract ends. The agency must spend 1% of its payroll on worker training and cannot charge selection or hiring fees. The user company must inform workers of job risks, is responsible for safety and hygiene, and is subsidiarily liable for wages and Social Security.

Who it affects

• Temporary work agencies: They must obtain authorization, provide a financial guarantee, keep records, and meet information and training duties; violations can lead to fines or a one-year suspension.
• User companies: They can only use this system in the cases allowed by law, must inform worker representatives, and are responsible for safety and, subsidiarily, for wages and Social Security.
• Assigned workers: They have the right to wages under the collective agreement, end-of-contract compensation, training, use of company transport and shared facilities, and to file claims through the user company's worker representatives.
• Worker cooperatives: They may obtain authorization to operate as temporary work agencies, with their own rules for their worker members.

Words worth knowing

Empresa de trabajo temporal

Temporary work agency: a company that hires workers to assign them temporarily to other companies.

Empresa usuaria

User company: the company that receives the assigned worker, where the worker performs the job.

Contrato de puesta a disposición

Supply contract: the agreement between the agency and the user company to assign a worker.

Masa salarial

Payroll: the total wages a company pays its workers.

Responsabilidad subsidiaria

Subsidiary liability: the duty to pay another company's debts if that company cannot pay them.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries