The labour market in Spain


The Workers’ Statute (E.T.) governs both the individual and the collective employment relations regulating the formats and types of contracts, causes for dismissal and possible compensation, unemployment benefits and pensions. The E.T., which has undergone various reforms and changes over the years, is divided into three main sections: individual relations, collective relations and collective bargaining. This bargaining is carried out between representatives of employers’ associations, most of which are members of the CEOE (Spanish Confederation of Business Organisations) and the CEPYME (Spanish Confederation of Small and Medium-Sized Companies), and workers’ representatives, the trade unions, with aim of reaching collective agreements in which working conditions are established for a particular economic sector (sectoral agreements) and those confined to a specific enterprise (company agreements) are established.