Employment lawyer in construction: comply with the most demanding sector in Spain

Employment law in construction: a sector with its own rules

Construction is one of the most complex sectors in Spanish employment law. The General Building Sector Collective Agreement, which applies nationally, is one of the most extensive and technical agreements in Spain: it regulates occupational categories, working hours, project-linked bonuses, leave, and safety conditions in a level of detail that requires specific expertise to apply correctly.

At BMC we have employment lawyers with direct experience in the construction sector. We know the CGSC and the provincial agreements in the main regions, and we act with the speed that the project-based nature of a construction business demands when problems arise and immediate answers are needed.

Subcontracting: managing the liability chain

Subcontracting is structural in construction. But with subcontracting comes joint and several liability: the principal contractor may be held liable for the wage and Social Security debts of its subcontractors in respect of workers employed on the project. This liability can extend for up to one year after the engagement concludes.

We advise on the design of subcontracting agreements, on the controls the principal contractor must exercise over the subcontractor, and on the management of the mandatory subcontracting register on projects with an approved plan. An adequate control system significantly reduces the risk of joint and several liability.

Workplace accidents: response protocol and defence

When a serious workplace accident occurs on a project, the first hours are critical. Notification to the labour authorities, internal investigation of the accident, coordination with the accident mutual, and preservation of safety documentation are actions that must be taken immediately and correctly.

At BMC we have a response protocol for serious workplace accidents that includes: legal assistance to the administrator at the appearance before the Labour Inspectorate, advice throughout any criminal proceedings, and representation in the benefit surcharge procedure before the Labour Inspectorate and Social Security authorities.

Managing a workforce at the pace of project activity

Construction companies have a workforce that expands and contracts with the rhythm of contracted projects. Managing this cycle efficiently — engaging staff when there is work and reducing headcount when there is not — without breaching employment law is one of the sector’s constant challenges. ERTE on productive grounds, termination of project-end contracts, and geographical mobility are the principal instruments of this management.

The 2022 labour reform and construction employment

The 2022 labour reform (RDL 32/2021) introduced specific provisions for the construction sector that reflect the sector’s unique employment model. Unlike other sectors where the project-specific fixed-term contract was abolished, construction retains a special project-linked contract under the General Building Sector Collective Agreement (CGSC) conditions — the CGSC itself regulates when and how project-specific contracts can be used.

The reform also requires construction companies to document more rigorously the connection between each project-linked contract and the specific project. Contracts that are not project-specific — or that extend beyond the natural conclusion of the designated project without formal extension — are presumed by law to be indefinite. For construction companies with large project workforces, auditing the alignment between active contracts and ongoing projects is an annual compliance exercise.

The fixed-discontinuous contract (contrato fijo-discontinuo) is now relevant for construction companies with recurring but intermittent project patterns — companies that win contracts cyclically and can anticipate future work, but cannot offer continuous employment. BMC advises construction companies on the optimal contract structure for each workforce segment under the post-reform rules.

Working time recording and overtime compliance in construction

Construction site working hours create specific compliance challenges. The CGSC contains detailed provisions on the standard working week, overtime rates, and project-linked bonus payments. Since the 2019 mandatory working time recording obligation came into force, construction sites must maintain daily time records for every worker on site — including subcontractor workers where the principal contractor has management and scheduling responsibility.

The ITSS inspects construction sites as part of its sector programme, focusing on: time recording accuracy, overtime declaration and payment, minimum rest periods between shifts, and safety record checks. A site with inadequate time records faces both a working time recording infringement (up to €7,500 per affected worker) and exposure to CGSC overtime premium claims if actual hours exceed declared hours.

BMC designs time recording protocols for construction sites that meet the statutory requirements and integrate with existing project management and payroll systems.

Dismissal and occupational classification disputes in the construction sector

Dismissal litigation in the construction sector frequently turns on occupational classification disputes: a worker’s entitlement depends on whether they are classified as a Peon Ordinario, an Oficial de Primera, or a Jefe de Equipo — each with different minimum wages and dismissal compensation under the CGSC. Classification errors can result in underpayment of wages throughout the employment relationship and inflated compensation calculations on dismissal.

Objective dismissal for production or economic grounds in a construction company requires documentary evidence that the grounds are genuine: a decline in project volume, loss of a major contract, or a technical change that eliminates the need for the role. The CGSC does not provide immunity from challenge — a dismissed CGSC worker has the same right to contest dismissal before the employment courts as any other employee. BMC prepares dismissal documentation to withstand tribunal scrutiny and represents construction companies in contested dismissal proceedings.

Equality plan and pay transparency obligations for construction companies

Construction companies with 50 or more employees must have a negotiated equality plan registered with the relevant labour authority. The historically male-dominated occupational structure of construction — with few women in site-based production roles and a small proportion in management — creates a specific equality plan challenge: the pay gap analysis must address genuine occupational segregation rather than individual pay discrimination.

The equality plan must include: a workforce diagnosis (occupational composition by gender, pay levels by category, promotion rates, work-life balance measures, and harassment prevention protocol), specific measures to address identified gaps, and measurable targets. BMC prepares equality plans for construction sector clients, including the statistical pay gap analysis required by RD 902/2020.

Companies without a registered equality plan by the statutory deadline are excluded from public contract and subsidy eligibility — a significant commercial consequence for construction companies dependent on public works contracts.