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Employee Benefits Law - Spain

About this Practice Area
Related Practice Areas: Labor and Employment Law, Pricing, Tax Law
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Employee Benefits Law Definition

The Employee Benefits law referrs to the compensation provided by the Companies to employees in addition to their normal wages or salaries. 

This practice area regulates the types of compensation that must be provided by law and those the employer offers as an option to compensate employees.

Spain is a country which offers a higher amount of coverage - for example, the coverage of unemployment, medical, maternity and paternity leave, and retirement through the Public System ruled by the General and Social Security Act, 8/2015. 

Other employee benefits are normally used as a recruitment and retention tool by the Companies. This plays an important role inside a Company, as the benefits offered can be a deciding factor for a potential employee´s decision to work in a particular Company. Lawyers experienced in the employee benefits area of law can assist employees in the defense of their rights to already established benefits, particularly when they have been modified or terminated. 

These lawyers can also assist the employers in their knowledge about the position of the law regarding these benefits as well as making sure they comply with the laws and have a correct understanding of them. They must also know the difference between what is required by law and what benefits are part of the employee´s compensation package to help in recruitment.

It is also important to have full knowledge of the tax regime of these benefits, as most kinds of employee´s benefits are taxable to at least some level. An important part of this practice area would be analyzing the tax impact in these measures adopted by a Company.

The most common employee benefits that are not required by law, and are offered by Companies as a compensation package are: retirement plans, life insurance, health insurance, dental insurance, and paid leave.

These packages are highly relevant nowadays in Spain, especially due to the increasing uncertainty of the future of the public system, which might not ensure coverage as it does these days.

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