Hiring your first employee is an important milestone for any SME or self-employed person. But beyond the emotional aspect, it's essential to comply with all the legal, tax and commercial requirements to avoid sanctions and get off to a good start.
This article offers you a step-by-step legal checklist to successfully hire your first employee in Spain, with key deadlines and practical examples.
1. Define the type of contract and working conditions
Choose the appropriate modality
The first step is to decide what type of employment relationship you need. The most common contractual arrangements include:
- Permanent contract: the most stable option, increasingly favored by regulations following the 2021 labor reform.
- Temporary contract: limited to justified reasons (production, substitution, etc.).
- Part-time contract: ideal for reduced hours, with proportional rights.
- Training or internship contract: reserved for young people or those in the qualification period.
It is mandatory to consult the applicable collective bargaining agreement, which regulates aspects such as maximum working hours, minimum wage, breaks, vacations, and salary bonuses.
Regulatory context: Workers' Statute and sectoral agreements. Failure to comply may result in sanctions or automatic conversion into a permanent contract.
Practical example: A self-employed person in the service sector may need someone to work 20 hours a week. A permanent part-time contract would be legal and tailored to their needs.
2. Register as an employer with Social Security
Request for the Contribution Account Code
To hire an employee, you must register as an employer with the General Treasury of Social Security (TGSS) and request a Contribution Account Code (CCC). This is the identification number used to manage the employee's contributions.
This procedure can be completed online through the RED System, if you have a digital certificate, or in person by appointment.
Important: This step is mandatory even for self-employed individuals who only hire one employee.
3. Selection of collaborating mutual
The regulations require the employer to join a mutual collaborator of Social Security, who will be responsible for managing:
- Occupational contingencies (work accidents and occupational diseases).
- Temporary disability benefits.
- Training in occupational risk prevention (in some cases).
Recommendation: Choose a mutual insurance company that offers coverage tailored to your activity and excellent post-employment service. Find out about the additional services some mutual insurance companies offer, such as prevention training.
4. Registration of the worker in Social Security
Prior communication
Before the employee begins providing services, you must register them with Social Security under the General Regime. This notification must include:
- Personal data.
- Day.
- Start date.
- Type of contract and contribution group.
Term: Registration must be processed at least the day before the actual start of work.
Sanctions: Failure to register the worker can result in fines of between 3,000 and 10,000 euros, in addition to the obligation to pay retroactive contributions.
Via: RED System (if you have a digital certificate) or at TGSS offices.
5. Signing the contract and notifying the SEPE
Signing the contract
Although some contracts may be verbal, a written signature is highly recommended and mandatory in most cases (for example, part-time, temporary, or internship contracts).
- You must keep a signed copy.
- The worker has the right to receive a basic copy of the contract.
Communication to the SEPE
Once the contract is signed, it must be notified to the State Public Employment Service (SEPE) within 10 business days.
This is done through the system Contractor (telematically with digital certificate) or in person at the SEPE offices.
6. Occupational Risk Prevention (ORP)
As an employer, you have a legal obligation to ensure the health and safety of your employees. This includes:
- Make a risk assessment from the workplace.
- Provide preventive training to the worker adapted to the functions.
- Offer a medical examination when required by agreement or specific risk.
You can manage this by hiring a external prevention service, especially if you don't have the internal structure for it.
Practical advice: Informs and trains the worker from day one. A common mistake is leaving occupational health and safety (ORT) issues “for later,” which can lead to serious penalties.
Before the worker starts his activity, you must comply with the obligations regarding PRL:
ExampleIf you hire an administrative assistant, a basic assessment of the office environment will suffice.
7. Tax and payroll aspects
Withholdings and contributions
Each month you must:
- Withholding personal income tax corresponding to the worker according to remuneration and personal situation and declare it through the Form 111 (quarterly).
- Enter Social Security contributions, both the worker's side and the business side (common contingencies, professional, training...).
- Issue the payroll, with a breakdown of concepts: base salary, supplements, prorated payments, personal income tax, social security, etc.
In addition, you must submit the following: tax models:
- Model 111 (quarterly): withholdings on account of personal income tax.
- Model 190 (annual): 111 information summary.
Practical example: for a gross salary of €1,500/month, the withholding may range between 2 % and 10 %, depending on the circumstances.
8. Commercial and accounting obligations
If your business is a corporation (SL or SA), you must reflect salary expenses in your accounting books, specifically in account 640 (salaries and wages) of the General Accounting Plan.
You must also:
- Record your employment obligations in your official books.
- Have up-to-date access to the Labor Inspection system, which may require documentation in the event of a visit.
Although paper visitor logs are no longer required, electronic work records are still required.
9. Additional documentation
To properly formalize and maintain the employee's file, you will need:
- Copy of DNI or NIE.
- Social Security affiliation number.
- Updated resume.
- Degree or certificates (if the position requires it).
- Criminal record certificate (in sensitive sectors such as education or healthcare).
- Disability certificate or unemployment benefits, if you qualify for benefits.
10. Access to bonuses or subsidies
Hiring certain groups can give you access to public aid or social security contribution discounts. Some examples:
- Young people under 30 years old.
- Women victims of gender violence.
- People with disabilities.
- Long-term unemployed.
Where to check: SEPE website and that of your autonomous community. Some bonuses can reach 100% of the business contribution for 12 months.
Summary table by phases
| Stage | Key action | Term |
| Type of contract | Choose modality and review agreement | Before discharge |
| Employer Registration (CCC) | Registration with the TGSS | Before hiring |
| Collaborating mutual | Election and formalization | Before discharge |
| Worker registration | Communication to Social Security | Before the start |
| Signing the contract | Signing and delivering copies | Start day or before |
| Communication to the SEPE | Sending the contract to the SEPE | 10 business days |
| PRL | Evaluation and training | Before the start |
| Taxation and payroll | Withholdings and presentation of models | Monthly/quarterly |
| Commercial accounting | Recording in books and accounts | When starting activity |
| Additional documents | Gather ID, certificates, etc. | When hiring |
| Bonuses | Check and apply for aid | According to current regulations |
Conclusion
Hiring for the first time means taking on new legal obligations, but it's also a key step in growing your business. proper management from the start It can save you from penalties and help you take advantage of all possible tax and employment benefits.
In ILCOWORKING & Legal Services We offer a Comprehensive labor, tax and commercial advisory service that accompanies entrepreneurs and companies throughout the entire process.
Are you going to hire your first worker? Let us help you do it with all the guarantees.
