Panama Employment Guide

Essential Elements of an Employment Contract in Spain

Employment contracts in Spain must be drafted in Spanish, though bilingual versions are permissible. They must be executed in writing and signed by both parties to be legally valid. A comprehensive contract should clearly outline the following details:

• Employee's full name, nationality, age, gender, marital status, residential address, and valid identification number.
• If the employer is a corporate entity, the company's legal name, registered address, name of the legal representative, and official registration details from the Public Registry.
• Names of any individuals cohabiting with the employee and details of dependents.
• The official start date of employment and the duration of the contract.
• A precise description of the job role and primary responsibilities.
• The designated workplace or primary location of employment.
• Standard working hours and the weekly schedule.
• Total compensation, agreed salary payment dates, and the method of payment.
• The specific location and date where the contract is signed.
• Original signatures from both the employer and the employee.

Understanding the Probationary Period

For international hires managed through SailGlobal, a probationary period of up to 90 days is implemented, aligning with the maximum duration permitted under Spanish labor law. This period is non-extendable. Since January 2022, SailGlobal's internal policy mandates the inclusion of a probation clause in all employment agreements to ensure compliance and clarity from the outset.

The probation period serves as a critical evaluation phase for both the company and the new hire. It allows the employer to assess the employee's performance, integration into the team, and overall suitability for the role. Conversely, it provides the employee with an opportunity to evaluate the company culture, job responsibilities, and alignment with their long-term career aspirations. This mutual assessment period helps mitigate long-term mismatches and supports informed employment decisions.

Case Study: Implementing Effective Probation

Consider a recent case where SailGlobal assisted a tech startup in Barcelona with hiring a senior developer. By clearly defining performance metrics and scheduling bi-weekly feedback sessions during the 90-day probation, the company was able to confirm a successful fit, leading to a stable and productive long-term engagement. This structured approach minimized onboarding risks and set clear expectations for both parties.