TRADE: The Legal Status that Protects Sole Traders Who Depend on One Client

Registration, contract and protection of the TRADE status: compliance with LETA Law 20/2007, mandatory contracts with the principal client and defence before the Labour Inspectorate.

Why TRADE status requires a formal contract and directly affects Social Security contributions and termination rights

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80%
Of potential TRADEs who have not formalised their status
75%
Income threshold from a single client to qualify as TRADE (Art. 11 LETA)
18 days
Guaranteed minimum annual rest for TRADE workers
4.8/5 on Google · 50+ reviewsSince 2007 · 19 years of experience5 offices in Spain500+ clients
Responsible team
RDRaquel Dominguez Pardo· Senior Associate - Legal DivisionCMCarlos Martinez Valero· Partner - Legal Division
Our approach

Our TRADE registration, contract drafting, and advisory process

01

TRADE requirements compliance analysis

We verify compliance with the Art. 11 LETA requirements: at least 75% of income from a single client, personal and direct work performance, no employed workers or subcontracting, real organisational and economic dependence.

02

SEPE notification and principal client communication

We process the notification to the Public Employment Service (SEPE — Servicio Público de Empleo Estatal) evidencing TRADE status and the formal communication to the principal client of economic dependence status.

03

Drafting the mandatory TRADE contract

We draft the mandatory written contract in accordance with Art. 12 LETA, covering activity conditions, termination, justified interruptions, annual rest and grounds for compensated termination.

04

Advisory and representation in disputes

We advise on unilateral contract termination by the client, claims for breach, and representation before the Social Court, which has exclusive jurisdiction over disputes arising from TRADE contracts.

The challenge

The economically dependent self-employed worker (TRADE — trabajador autónomo económicamente dependiente) is a legal category established in Law 20/2007 for over fifteen years, but 80% of the self-employed workers who would qualify are unaware of it or have not formalised it. The consequence: they lack the legal protections the law grants them — annual rest, justified interruption of activity, compensated contract termination — and are exposed to the sudden loss of their sole client with no safety net whatsoever.

Our solution

We analyse whether the self-employed worker meets the LETA requirements for TRADE recognition, process the SEPE communication, draft the mandatory contract with the principal client and advise on contract termination or disputes with the principal client, including representation before the Social Court (Juzgado de lo Social).

The economically dependent self-employed worker (TRADE — trabajador autónomo económicamente dependiente) is the legal category established by Articles 11 and 12 of Law 20/2007 (the Self-Employment Statute — LETA) for self-employed workers who obtain at least 75% of their professional or business income from a single principal client. TRADE status grants significant legal protections not available to ordinary self-employed workers: a minimum 18-day annual rest entitlement, justified activity interruptions for incapacity or maternity/paternity leave, minimum notice of contract termination, and compensation for unjustified termination. These protections are activated by a formal SEPE notification and a mandatory written contract with the principal client — a step that the vast majority of qualifying self-employed workers have not taken.

Why TRADE status matters

The distinction between a TRADE and an ordinary self-employed worker is not merely formal. Without TRADE status, a self-employed worker who derives all their income from a single client has no legal protection against sudden contract termination: the client can end the commercial relationship at any time, with no notice period and no compensation, even after years of collaboration.

With TRADE status and a properly drafted contract, the same worker has minimum notice rights, a right to compensation for unjustified termination quantified at the actual loss suffered, and access to the Social Court (Juzgado de lo Social) for dispute resolution — the same court that handles employment disputes, not the civil courts used for commercial contracts.

TRADE and concealed employment: managing both sides

TRADE status creates complexity for the principal client as well. If the Labour Inspectorate investigates the relationship and finds employment indicators — integration in the client’s organisation, fixed remuneration regardless of results, client-controlled working hours — it may reclassify the relationship as employment, triggering retroactive Social Security contributions and wage arrears. Proper structuring of the TRADE relationship from the outset is the most effective way to manage this risk.

This service is part of our employment law advisory practice.

Concrete deliverables

Eligibility analysis and SEPE notificationTRADE contract draftingAdvisory on TRADE contract terminationDefence against employment reclassification

Eligibility analysis and SEPE notification

Verification of Art. 11 LETA requirements and processing of the SEPE and principal client notification to formalise TRADE status recognition.

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TRADE contract drafting

Drafting of the mandatory written contract under Art. 12 LETA, including activity conditions, remuneration, annual rest, justified interruptions and termination grounds with consequences.

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Advisory on TRADE contract termination

Analysis of the termination cause invoked by the client, quantification of loss and extrajudicial claim or Social Court representation if no agreement is reached.

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Defence against employment reclassification

Advisory to the principal client or TRADE when the Labour Inspectorate investigates the relationship to determine whether a concealed employment relationship exists, with employment indicator analysis and defence strategy.

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Publications

Analysis and perspectives

Service Lead

Raquel Dominguez Pardo

Senior Associate - Legal Division

Master in Legal Practice, Universitat Pompeu Fabra Law Degree, Universitat de Barcelona
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FAQ

Frequently asked questions

The TRADE is a legal category regulated in Articles 11 and following of Law 20/2007 (the Self-Employment Statute — LETA). It is the self-employed worker who obtains at least 75% of their professional or business income from a single principal client. They enjoy specific rights not available to ordinary self-employed workers: annual rest of 18 working days, justified interruption of activity, notice on contract termination, and compensation for unjustified termination.
The Art. 11 LETA requirements are: (1) at least 75% of professional/business income comes from a single client in the preceding calendar year; (2) the activity is performed personally, directly and predominantly for that client; (3) no employees or subcontracting to third parties for the activity performed for that client; (4) own productive infrastructure and material for the activity; (5) the activity is carried out according to own organisational criteria; and (6) remuneration is based on the result of the activity.
Yes. The LETA requires notification of TRADE status to SEPE at the time it is acquired. This notification does not create the status — it arises by operation of law when the objective requirements are met — but it evidences the status and activates the legal protections. It must also be communicated to the principal client, who is required to accept it if the requirements are met.
The TRADE is entitled to: (1) annual rest of 18 working days (negotiable upwards in the contract); (2) justified interruption of activity for temporary incapacity, maternity/paternity, risk during pregnancy and other statutory grounds; (3) notice of contract termination by the principal client (minimum 15 days for open-ended contracts); (4) compensation if the client terminates the contract without justified cause; (5) access to the Social Court for contractual disputes, instead of the ordinary civil courts.
Yes. Art. 12 LETA requires the principal client to formalise the contract in writing. If the client refuses, the TRADE may seek judicial enforcement of the formalisation. The contract must include: the conditions of the activity, the mode of performance, duration or criteria for determining it, time and place of work, price of the activity, justified interruptions and grounds for termination and their consequences.
The client may terminate the contract with a TRADE, but not unilaterally and without consequences. For open-ended contracts, a minimum 15-day notice is required. If termination occurs without justified cause, the TRADE is entitled to compensation equivalent to the loss suffered. If the client invokes a cause that the TRADE disputes, jurisdiction lies with the Social Court, not the civil courts.
If the real relationship has employment indicators (integration into the client's organisation, no personal economic risk, client-set working hours, fixed remuneration regardless of results), the Labour Inspectorate may conclude that a concealed employment relationship exists. In that case, the employment relationship is declared, with the consequent obligation to make retroactive Social Security contributions and pay wages in accordance with the applicable collective agreement.
Yes. TRADE status does not prevent working for other clients — it is sufficient that one of them represents at least 75% of income. If at any point no single client exceeds that threshold, TRADE status is lost and SEPE must be notified. If a second client exceeds 25% of income and the first falls below 75%, TRADE status is also lost.
Quick assessment

Does this apply to your business?

Answer in under 30 seconds to see whether this service fits your business before getting in touch.

Do you obtain more than 75% of your self-employment income from a single client?

Have you formalised TRADE status with SEPE and signed the mandatory written contract?

Are you aware of your right to compensation if your principal client terminates the contract without cause?

Is your client treating you as an internal employee without recognising the corresponding employment rights?

0 of 4 questions answered

First step

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Our team of specialists, with deep knowledge of the Spanish and European market, will guide you from day one.

Economically Dependent Self-Employed (TRADE)

Employment

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