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Spain’s foreigner unemployment rate shoots up by 37% due to Covid crisis

The joblessness rate among foreign nationals was 20 percent higher than the national average at the end of 2020.

Spain's foreigner unemployment rate shoots up by 37% due to Covid crisis
Photo: CRISTINA QUICLER/AFP

The number of people in Spain registered as unemployed surpassed four million for the first time in five years in February, government figures showed last Tuesday, as pandemic restrictions hit the country’s tourism-dependent economy.

A closer look at the stats shows that one group where this worrying trend is even more pronounced is the country’s 5.4 million foreign residents.

Unemployment among extranjeros (foreigners in Spanish) shot up by 37 percent by the end of last year – equalling 227,900 more foreigners without work than in 2019, according to Spain’s latest Survey of Working Population (Encuesta de Población Activa) EPA

In the final three months of 2020 alone, 40,000 of Spain’s foreign residents lost their jobs.

In fact, of the 527,900 newly unemployed people who were registered in 2020, four in every ten were foreign nationals.

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Only 2.3 million foreigners in Spain were registered as working by the end of last year, a figure that may explain why around 3 million foreigners are not affiliated to the country’s social security system as they don’t make tax contributions, and in principle won’t be able to access public healthcare or the Covid-19 vaccine yet (many aren’t on public hospital records).

That doesn’t mean that 3 million foreigners are out of work but rather that many form part of Spain’s underground or ‘black’ economy, whereby they often get paid cash-in-hand and don’t receive welfare benefits as their employers haven’t registered them as workers or offered them a contract. It’s a practice that is also common among Spanish workers.

Almost two in every three foreign nationals registered as unemployed had work in the service sector, a trend which makes sense given the hit Spain’s hospitality and tourism industry has received for the past year as a result of lockdowns, opening restrictions and international travel bans.

Unfortunately, 2021 hasn’t got off to a good start either, as the number of extranjeros en paro (foreigners out of work) this February totals 590,457, according to Spain’s Labour Ministry, 44 percent higher than in February 2020.

It’s worth noting that both Spain’s Labour Ministry and its National Statistics Institute don’t include in their calculations the roughly 755,000 people benefitting from a government coronavirus furlough scheme -ERTE – as of the end of last year.

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Do I have to take most of my annual leave in August in Spain?

Many Spanish companies still expect their workers to take their holidays at specific times of the year, primarily in August, right in the height of summer when many hotels are fully booked. So what are your rights, are you obliged to take your vacation in one particular month?

Do I have to take most of my annual leave in August in Spain?

While it’s your right as an employee to be able to take holiday days, do you have to take them when your company wants you to take them, or are you able to choose and have more flexibility?

Despite August being one of the hottest months in Spain and the one month of the year when many official companies and offices shut up shop, not everyone necessarily wants to take their break at the same time as everyone else.

Taking your holidays in August means less availability in hotels, overcrowding and more expensive transport and accommodation. If you don’t have children who are off from school during the summer months, then you may wish to take your vacation days at another time of the year, when it’s less busy and cheaper.

To answer the question it’s important to know the details about what the law says about how paid time off is taken, requested, imposed, or granted.

What laws or regulations dictate the rules about paid holiday time?

There are three different sets of rules and regulations, which are responsible for regulating the laws on vacation time in Spain. 

Firstly, you need to look at the Spanish Workers’ Statute, which includes rights, duties and obligations applicable to all salaried workers in Spain.

Secondly, you need to be aware of the collective sector and/or company agreements, which may dictate the rules for a particular industry for example.

Thirdly, you need to look at the contract, which you signed with your employer when you started working for them. This sets out your individual circumstances and the rules you must abide by.   

Workers Statute

As a general rule, all employees are subject to the Workers’ Statute. Holidays are part of this and are the subject of article 38. These conditions can never be contradicted by individual companies and are set as a guaranteed minimum. 

The minimum number of holidays in Spain is 30 calendar days per year. This equals two and a half days per month worked, in the case of temporary contracts. The statute states that vacations must be taken between January 1st and December 31st in separate periods, but one of them must be for at least two weeks. They are always paid and cannot be exchanged for financial compensation.

The period when you can take them is set by a common agreement between the employer and the worker, in accordance with what is established in the collective agreements on annual vacation planning. If there is disagreement, the social jurisdiction is resorted to.

At a minimum, the company must offer vacation days at least two months before the beginning of the holiday period, so that the employee has time to organise and book.   

When the planned time to take vacations coincides with a temporary disability, pregnancy, or childbirth, you have the right to enjoy the vacations at another time, even after the calendar year is over.

Collective agreements on vacations  

Your sector’s collective agreements may also help to answer this question. These aim to improve upon the basic and general rights that are included in the Workers’ Statute. They seek to adapt the rules to each type of industry or company. They could, for example, set out extra vacation days, which are greater than the standard 30 calendar days. 

You will need to find out what your specific sector or company’s collective agreement is. There is a possibility that your sector or company has mandatory summer vacations for the month of August and in that case, you can choose vacation dates, but only within this month.

Your work contract 

Lastly, you will need to consult your individual contract which you signed with the company when you were hired.  As well as the minimum conditions set out in the Workers’ Statute, your contract sets out your particular agreement with your employer in terms of holiday duration, the work calendar and other details.

Therefore, you should state in your contract whether you have to take your holidays during August, or if you’re free to take them at other times of the year.

If after consulting these three sets of regulations and there are still in doubt or in disagreement with your company about vacations, such as having to take them during the month of August, you should consult a lawyer specialising in labor law. They should be able to give you an answer specific to your situation.  

Can I appeal or disagree and what are the consequences? 

To appeal or express disagreement with what is proposed by the company, there is a period of 20 business days from when the vacation schedule is sent out, after which time you don’t have the right to show that you disagree.  

Companies can proceed to disciplinary dismissals due to abandonment of the job if you decide to take vacations that have not been granted or agreed upon with your employer. To avoid this type of problem, always make sure you have a record in writing of your request for vacation time and subsequent approval by the company.

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