Domestic workers | Key points of the new Law.

On September 8, Royal Decree-Law 16/2022, of September 6, on improving the working and Social Security conditions of domestic workers, was published in the Official State Gazette (BOE). The new rules seek to place this group on an equal footing with other employees with regard to the rules on termination of the employment relationship and unemployment benefit, among other matters. The new legislation will not have retroactive effect.

New unemployment protection for this group
In 2012, Spain approved the current regime for domestic workers, giving them access to the General Social Security Scheme (Régimen General). Domestic workers began to pay contributions from the first hour worked and could take sick leave.
However, their entitlement to unemployment benefit upon termination of their contract was not regularized. To ratify Convention 189 of the International Labour Organization on domestic workers and to regularize access to unemployment benefit, the Government has approved the right of domestic workers to unemployment benefit.
The new rules also provide that domestic workers will be entitled to all welfare benefits available under the labor law framework and will be brought within the scope of occupational risk prevention.
To access unemployment benefit, a domestic worker must meet the general requirements for entitlement to the benefit:
• Be registered with the Social Security system and be in active registration (alta) or in a situation treated as equivalent to active registration, in the cases determined by regulation.
• Have completed the minimum contribution period (360 days) within the six years preceding the legal situation of unemployment (situación legal de desempleo) or the time when the obligation to contribute ceased.
• Be in a legal situation of unemployment and prove availability to actively seek employment and to accept suitable job placement by signing the activity commitment (compromiso de actividad).
• Not have reached the ordinary retirement age required in each case to qualify for the retirement pension.
• Be registered as a jobseeker with the competent public employment service.
Contributions
Domestic workers will begin paying contributions toward their unemployment benefit as from October 1. Contributions to the Wage Guarantee Fund (Fondo de Garantía Salarial) will also be mandatory as from October 1. From then on, domestic workers will be able to receive compensation in the event of insolvency.
Contributions will benefit from 80% relief (bonificación), and the existing 20% reduction in the employer’s contribution for common contingencies will be maintained.
In addition, the relief brackets above 20% are increased, taking into account household composition and income and wealth levels.
Employers will be responsible for handling the contributions of domestic workers who work fewer than 60 hours per month.
Calculation of contribution bases
Contribution bases for common and occupational contingencies will be determined according to the pay received by domestic workers, as provided for in the General State Budget Law.
Until 2022, the monthly pay and contribution bases in the scale will be updated in proportion to the increase in the national minimum wage (SMI).
In 2023, monthly pay and contribution bases will be as follows (€/month):
Bracket 1: Up to 269 … 250
Bracket 2: From 269.01 to 418 … 357
Bracket 3: From 418.01 to 568 … 493
Bracket 4: From 568.01 to 718 … 643
Bracket 5: From 718.01 to 869 … 794
Bracket 6: From 869.01 to 1,017 … 943
Bracket 7: From 1,017.01 to 1,166.669 … 1,166.70
Bracket 8: 1,166.67 … Monthly pay
Amount of severance pay
The new rules abolish termination by the employer’s unilateral withdrawal (desistimiento). Until now, domestic workers could be dismissed without any reason, and the employer paid them severance of 12 days’ salary per year of service, capped at 6 months’ pay. This will no longer be the case. The new rules provide that the grounds for terminating the contract must be proven.
The employment relationship may be terminated on any of the following grounds, provided that they are justified:
• A decrease in household income or an increase in household expenses due to a supervening circumstance.
• A substantial change in the household’s needs justifying dispensing with the domestic worker.
• Conduct of the worker that reasonably justifies the employer’s loss of trust.
If the employment has lasted more than one year, the domestic worker will be entitled to be notified of the decision to dismiss them at least 20 days in advance. In all other cases, notice must be given at least 7 days in advance. During that notice period, a domestic worker employed full-time will be entitled to 6 hours’ leave per week to look for a new job (without any loss or reduction in pay).
Domestic workers will be entitled to severance pay of 33 days’ salary per year worked if the dismissal is held to be unfair (despido improcedente), up to a maximum of 24 months’ pay. They will be entitled to severance of 20 days’ salary per year worked, capped at 12 months, in the case of a dismissal on objective grounds (despido objetivo).