What it is and who it binds
The agreement is negotiated between the most representative trade unions and employer organisations in the relevant sphere, or between the works council and management in a specific company. Its content is regulated in Articles 82 to 84 of the Workers' Statute, and it has the force of law between the parties and for all those covered by its scope.
The erga omnes effect is the key difference from other countries: a sectoral agreement applies to all companies in the sector and territory, even if they were not affiliated to the employers' association that signed it and even if they did not participate in the negotiation. For a newly created subsidiary, this means there is no option to stay outside: the wage tables of the agreement are the floor.
Sectoral or company agreement
Usually, each company is covered by a sectoral agreement, which may be provincial, regional, or national depending on where it is negotiated and what activity it covers. A company agreement is a specific agreement of narrower scope that a company can negotiate with its workforce representatives.
In the event of a conflict between the two, the labour reform gave priority to the company agreement in a list of matters: base salary and supplements, working hours and distribution of the working day, shift work, holiday planning, overtime, subcontracting clauses, or equality plans. In matters where the company agreement does not have priority, the sectoral agreement prevails.
What it contains: from wage tables to working hours
The agreement can improve almost any legal condition, but it cannot worsen it: the maximum working day, rest periods, the 30 days of annual leave, and the leave entitlements under the Statute are minimums of necessary law. An agreement that pays less than the wage tables of its sector is an infringement, not a saving: the Labour Inspectorate detects it quickly, and wage differences can be claimed with retroactive effect.
Key points
- Wage tables by professional group: the sector's minimum wage, paid in 12 or 14 instalments depending on the agreement
- Annual working hours, schedule, and distribution, with limits that improve on the Statute
- Bonuses: night work, hazardous work, arduous work, seniority, and job supplements
- Holidays, paid leave, and personal days, above the legal minimum
- Overtime: rate, compensatory rest, and limits
- Subrogation clauses and equality matters, such as the equality plan when applicable
Validity and survival (ultraactividad)
The agreement lasts as long as the parties agree, usually one to three years. When it is denounced (i.e., notice is given of the intention to negotiate a new one), the previous agreement is extended while the negotiation of the next one takes place: the 2021 reform eliminated the automatic expiry introduced by the 2012 reform, so there is no longer a deadline after which the agreement lapses simply with the passage of time.
To prevent this extension from becoming an eternal deadlock, if the negotiating committee has been unable to reach an agreement for more than six months since its constitution, the parties are obliged to submit to the mediation and arbitration procedures of the labour dispute resolution system.
The opt-out (descuelgue): when a company can stop applying the agreement
When economic, technical, organisational, or production circumstances justify it, a company may opt out of the agreement in matters such as salary, working hours, or schedule: this is the opt-out under Article 82.3 of the Statute. It is not free: it requires agreement with the legal representatives of the workers or, failing that, the intervention of the negotiating committee of the agreement or an arbitrator.
The opt-out has limits: it cannot affect rest periods, leave, compliance with legal minimums, or, in practice, non-compete clauses. It is understood as a temporary and proportionate measure, reviewable by the courts, not as a way to eliminate the agreement.
What to watch out for when hiring in Spain
The collective agreement is not a formality: it is the source of almost all your salary and working time obligations. Reading it before opening the subsidiary avoids the most expensive mistake of the first year, which is budgeting salaries below the wage tables and discovering it when a collective claim lands on your desk.
Key points
- Identify the applicable agreement: the actual main activity and the province where the workplace is located
- Read its wage tables before making offers: they are the minimum, not a rough guide
- Count the pay instalments: 12 or 14 depending on the agreement, so as not to miscalculate the annual cost
- Check the survival (ultraactividad) if you inherit a denounced agreement in an acquisition or subsidiary
- Consider a company-specific agreement if the workforce and representation allow it
