Labour adaptation measures Post-Brexit

The Spanish Government approved on 29 December 2020 the Royal Decree-Law 38/2020 adopting measures to adapt the United Kingdom of Great Britain and Northern Ireland to the status of third country following the end of the transitional period provided for in the Agreement on its withdrawal from the European Union.

The main measures in relation to employment are the following:

Labour relationships

  • Companies established in Spain which on 1 January 2021 had workers temporarily posted at United Kingdom or Gibraltar will continue applying the United Kingdom legislation during the period of posting of the workers, provided that reciprocal treatment is recognised.
  • Companies established United Kingdom or Gibraltar whose workers have been posted to Spain before 31 December 2020 will be able to remain in Spain without having to obtain a residence and work permit until the end of the planned period of posting, provided that reciprocal treatment is recognised.

If the planned period of the posting finishes and must be extended, the worker must obtain a residence and work permit. The same applies to workers that were posted after 1 January 2021.

European work councils

European work councils agreed before 1 January 2021 participated by UK workers and companies and having its main address in Spain will be in force until its modification is done.

Contributions for unemployment or cessation of business

For UK nationals to have access to such contributions, it would be considered the periods of contribution in any EU state up to 31 December 2020, provided that the last contribution is paid in Spain and the right to legally reside in Spain is maintained.

For nationals of EU states, it would be considered the periods of contribution paid in the British Social Security system up to 31 December 2020 when the last contribution is paid in Spain.

For EU citizens residing in Spain, but commuting to Gibraltar for work and not covered by the Withdrawal Agreement, these benefits will be available until 31 December 2022 for periods of contribution in Gibraltar without having to pay the last contribution in Spain.

The information contained in this note should not be considered in itself as specific advice on the subject under discussion, but only as a first approximation to the subject matter, and it is therefore advisable that the recipients of this note obtain professional advice on their particular case before adopting specific measures or actions.

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