As more UK employers support staff working remotely from Spain under the Digital Nomad Visa, it is crucial to understand which employment laws apply and what obligations arise.
UK Law in the Contract – But Not the Whole Story
Your employment contract can specify that UK law governs the employment relationship. This choice is valid and enforceable. However, under the Rome I Regulation, which both the UK and Spain apply, you cannot contract out of mandatory protections in the country where the employee habitually works.
If your UK-hired employee lives and works in Spain most of the time, Spanish employment law minimum standards will apply, even if they have a UK law contract.
Key Spanish Protections That May Apply
- Minimum wage levels are set in Spain.
- Maximum weekly working hours (typically 40).
- Paid annual leave of at least 30 calendar days.
- Rules on termination, including notice and severance pay.
- Health and safety requirements apply even to remote work.
Social Security and Tax Considerations
- UK National Insurance can be continued if the employee holds a valid A1 certificate, typically for up to 24 months.
- Without an A1 cover, Spanish social security contributions may be compulsory.
- Employees spending over 183 days in Spain in a year will usually become Spanish tax residents and be taxed on worldwide income.
What Should UK Employers Do?
- Include a clear governing law clause (UK law) in the contract.
- Ensure terms meet or exceed Spanish minimum standards.
- Apply for and maintain A1 certificates for social security.
- Review health and safety obligations for remote work.
- Advise employees on possible Spanish tax residency consequences.
Conclusion
Employers cannot simply assume UK law applies in full. For staff habitually working in Spain, Spanish employment protections will apply by law. Careful planning, clear contracts, and adherence to local standards are crucial for minimising legal risks.
Please get in touch with us at Del Canto Chambers. We specialise in Anglo-Spanish tax advice for UK employers and employees working in Spain.
Eoin McGirr is a dual-qualified barrister in England and a Spanish abogado. Based in Bilbao, he specialises in immigration, real estate, family law, and cross-border legal matters. He is also a lecturer at the University of Deusto, where he supports students in international legal practice.
