Employment Issues

Employment here is quite complex and if you’re considering carrying out your own payroll – forget it!

With several types of contract, facing the issue of how and when employees should become permanent, what rules apply to a particular category is a minefield and you will need the help of an expert who is specially trained in employment and labour issues.

Employing is also quite expensive due to social security payments which the employer pays.

In addition depending on the category an employee is entered under, these payments can rise significantly making the cost to the business fairly hefty.

For example each employment category potentially carries a different "covenant" in respect of job description, length of contract and anything additional which must be applied.

Say you are a constructor with a particular job set for a particular length of time, depending on certain criteria you could possibly opt for offering a "fins de obra" contract which literally means end of work or job.

Also when calculating your overheads if you are employing, remember to take into account whilst it is a twelve month year payments can equal fourteen months, due to two extra payments which apply here, these can be spread over the year.

And finally, if you are taking over a business that already has employees then there will be other issues which you will need to have clarified.