What a labour consultancy does
The work of a labour consultancy covers the worker's entire life cycle in the company, from the signing of the contract to leaving it. These are the services it usually brings together:
- Payroll and social security: monthly calculation and submission of contributions
- Contracts and registrations and removals with the Social Security
- Management of the applicable collective agreement
- Dismissals, settlements and severance
- Occupational risk prevention and management of inspections
What it includes and what it does not
The labour consultancy focuses on the relationship with workers. The company's tax side is the tax consultancy, and defence in court proceedings is legal advice. They are different services that are often contracted together, but it is better not to assume they are included.
A gestoría usually offers all three fronts in one package, while a specialised labour consultancy only handles the labour side. Before signing, ask what is excluded so you do not get a surprise halfway through the year.
How much a labour consultancy costs
The price depends on the number of workers, the collective agreement and the services included, so the figures give an indication but are not a fixed fee. A self-employed person without employees usually pays between €50 and €150 a month; an SME with several workers is between €100 and €300 a month.
Many consultancies charge a fixed monthly fee and charge separately for one-off services, such as a dismissal or a special contract. Compare what each fee includes rather than just looking at the amount of the fee itself.
When outsourcing pays off
Until you hire your first employee, the labour burden is minimal. From then on things change: every registration, every payroll and every regulatory change adds work and risk. The tipping point is usually the first hire.
If you operate in several countries, the answer is even clearer. Each market has its own agreement, contributions and deadlines, and managing it through a single consultancy with international coverage avoids costly errors and duplication.
Labour consultancy vs gestoría
A gestoría is a broader concept that mixes labour, tax and accounting. A labour consultancy is only the employee side. For a small business, a comprehensive gestoría is usually more convenient; for one with staff and specific needs, a specialised labour consultancy provides more depth.
Neither of the two replaces a lawyer if the matter ends up in court. The consultancy prevents and manages day-to-day matters; the lawyer steps in when there is a dispute.
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