The basic law in this field is the Workers’ Statute (Legislative Royal Decree 1/1995), which defines the respective rights of employees and employers, general terms of labor employment contracts, procedures for dismissal and collective bargaining rules.

In addition, there are specific regulations for different industries and certain groups of employees such as commercial representatives and senior management personnel.

Another important source of labor law is collective labor agreements, which may be negotiated at the company level (or more reduced scope) or by industries at the State level or more reduced territorial scope.

Individual employment contracts also contain numerous mandatory provisions which condition labor relationships.

There are also detailed regulations affecting working hours and occupational health and safety in specific industries.

Also significant in this field is Legislative Royal Decree 5/2000, of August 4, approving the Revised Labor Infringements and Penalties Law. The Legislative Royal Decree imposes for the most serious cases fines of up to €90,151.82 (in the legislation on prevention of occupational risks, there are fines of up to €601,012.10).

Law 12/2001, for Urgent Measures to Reform the Labor Market to increase and improve the quality of employment, which amends various articles of the Workers’ Statute and other labor provisions and regulates permanent employment promotion contracts and part-time contracts, should also be noted.

Additionally, on November 5, 1999, the Law 39/1999 on the Reconciliation of the Work and Family Lives of Female Employees was published, signaling a major advance in promoting equality between men and women and introducing a range of measures designed to make family responsibilities compatible with the possibility of promotion and advancement at work. This Law has been implemented in part by Royal Decree 1251/2001 regulating Benefits under the social security program for maternity and for risks during pregnancy.

Law 29/1999 introduced changes (to Law 14/1994) as regards temporary employment agencies, in an attempt to have the terms of employment enjoyed by employees of client companies also applied as far as possible to the workers supplied to them to meet their temporary needs, so as to avoid biased and discriminatory practices.

Lastly, in connection with the legislation on pension plans and funds, Royal Decree 304/2004 was approved on February 20, 2004, and establishes regulations on the functioning of pension plans and funds. However, it is expected that the current Pension Plans and Funds Law will be amended to bring it into line with the 2003 EU Directive.