False Self-Employed Workers in Spain: What They Are and How the Law Protects Employees
The figure of the false self-employed worker has become one of the most significant sources of conflict within Spanish labour law. It is a form of employment fraud that affects both workers and companies and is subject to increasing scrutiny by the Labour Inspectorate and the courts. Understanding what false self-employment is and the legal consequences it entails is essential to protect workers’ rights and to avoid serious legal risks for businesses.
From a legal perspective, a false self-employed worker is someone who is formally registered as a self-employed professional but, in practice, provides services under conditions that are characteristic of an employment relationship. The decisive factor is not the contract signed or the fact that invoices are issued, but how the work is actually performed. Spanish case law consistently applies the principle of the primacy of reality, meaning that the true nature of the relationship is determined by the facts rather than by its formal appearance.
In these situations, the worker is usually integrated into the company’s organisational structure, follows instructions, complies with working hours and uses the company’s tools or resources. At the same time, the worker does not bear the economic risk of the activity and does not freely set the price of the services provided, which are key features of genuine self-employment. When these circumstances are present, the law considers that there is a hidden employment relationship, even if the worker has been required to register as self-employed.
False self-employment is particularly common in certain sectors of the Spanish economy, such as delivery services, transport, digital platforms, construction, commercial activities and some professional services. In many cases, this practice is used to reduce labour costs and to avoid obligations related to Social Security contributions, paid holidays or dismissal compensation, placing workers in a situation of legal and economic vulnerability.
From the employer’s perspective, the use of false self-employed workers can lead to serious legal consequences. The Labour Inspectorate may impose substantial financial penalties and require the retroactive registration of the worker under the General Social Security Scheme. In addition, companies may be obliged to pay unpaid Social Security contributions, together with surcharges and interest, which can represent a significant financial burden.
For affected workers, being recognised as falsely self-employed means recovering essential employment rights. These include the right to paid holidays, unemployment protection, remuneration in accordance with the applicable collective bargaining agreement and compensation in the event of unfair or null dismissal. Even if the working relationship has already ended, workers may still bring legal claims to have the employment relationship recognised and to recover outstanding amounts, provided that statutory limitation periods have not expired.
In cases of suspected false self-employment, seeking specialised legal advice is crucial. A labour lawyer can analyse the specific circumstances of the working relationship, assess whether there is an employment relationship disguised as self-employment and determine the most appropriate legal strategy, whether through a complaint to the Labour Inspectorate or legal action before the Labour Courts. Early and informed action is essential to protect workers’ rights and to minimise legal risks.
In conclusion, false self-employment is a practice that contravenes Spanish labour legislation and poses significant legal risks for both companies and workers. Correctly classifying the employment relationship and ensuring compliance with current labour regulations are essential to guarantee legal certainty and to prevent future disputes. Relying on the advice of a law firm specialised in Spanish labour law is the most effective way to address these situations with legal rigour and confidence.