The worker is an important asset for the company,but also a source of expenses,since, in addition to paying his salary, he must pay monthly the corresponding contributions to the Social Security, being the salary burdens very high and this causes to make unwise decisions.


Working without a contract is a crime in Spain

Working without formalizing an employment contract is a crime in Spain and, unfortunately, it is becoming an increasingly common situation in recent years, due to the economic difficulties that thousands of companies in our country are going through.

This is reflected in article 311 of the Penal Code and In Royal Legislative Decree 5/2000, of August 4, which states that “labour infringements are the actions or omissions of employers contrary to the laws, regulations and regulatory clauses

of collective agreements on industrial relations, both individual and collective”.

The problem is that most of these companies are unaware of the consequences of working withouta contract, or simply believe that they will not be unlucky enough to receive a labour inspection, being fully convinced that nothing will happen to them.

In addition, there are also many workers who apply to work without contract for different issues, believing that the responsibility lies with the company. What they don’t know is that there are also consequences for the worker by working without an employment contract.

In both cases, the fine for working without a contract is not exactly insasure,and the most serious cases would even be punishable by up to 3 years in prison. Therefore, savings are expensive.

For this reason, in AYCE we review the main consequences and sanctions of working without a contract, both for the company and for the worker. So if you have a worker without a contract or have valued this possibility, pay attention and take note.


Consequences for the company to work without a contract

The employer / self-employed who hires a worker without the corresponding employment contract, may face a fine for working without a contract of 3,126 to 10,000 euros.

Having workers without a contract is violating the worker’sright to be discharged and listed on Social Security, which involves the commission of a serious misconduct punished by a fine of between 3,126 and 10,000 euros.

And the penalty for working without a contract does not end here, but, in addition, the employer must pay all the unpaid contributions to the Social Security for the time that the employee has been without a contract plus corresponding surcharges.

In addition, the company would lose all public aid granted to it,as well as the possibility of accessing bonuses until two years have passed since the infringement was committed.


Consequences for the worker to work without a contract

Focusing on the consequences for the worker to work without a contract,the first and most important is that he will not be discharged in Social Security,with all that this entails.

Consequences of not being discharged from Social Security for the worker:

  • The time worked will not count towards contribution purposes,which in the future will affect both your unemployment benefit and your retirement pension.
  • In the case of a unfair dismissal, the worker is not entitled to any compensation. In addition, it will be unprotected in the event that the employer ceases to pay the agreed salary, since in this case, before claiming what is owed to him, he must initiate actions in order to be recognized that there was an employment relationship.
  • One of the most serious consequences of working without a contract is that, in the event of an occupational accident or illness, the employee will not be able to receive the compensation that corresponds to him. In addition, the employer will not be obliged to take charge of his salary during the days of leave. That is, you will not receive any compensation for the damage suffered, and you will also no longer receive your salary.

And, in the case of working without a contract and collecting unemployment benefit, the worker should return all the amounts received,in addition to losing the right to future benefits and being sanctioned with a fine for working without a contract.

Following the law is always the most profitable. We recommend that every company has a
labor advisor
to comply with all current regulations on hiring employees.

Contact an Ayce job advisor