Spain: Self-employed workers
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Self-employment is remarkably important in the Spanish economy and labour market, as the self-employed account for around 3.6 million people, out of which 2.2 million are self-employed without employees (representing 18.3% and 11.1% of the total Spanish workforce, respectively).The recent Self-Employed Workers’ Statute constitutes a giant step towards improving the social protection of the Spanish self-employed, as well as regulating for the first time so-called economically-dependant self-employed workers (or “bogus” self-employed workers)
1. Legal provisions and social security
As defined by the Spanish Social Security Law, self-employed workers are those workers who are older than 18 who exert an economic activity on their own account under no labour contract, irrespective of whether or no they hire employees and regardless of the type of business, i.e. individual or family. Therefore, they are understood as those who habitually, personally and directly carry out a profit-driven activity without receiving a regular wage.
Spanish Social Security includes the general system of social security (Régimen General de la Seguridad Social) and a group of special systems (Regímenes Especiales de la Seguridad Social). Self-employed workers, in particular, have to contribute to the second group, mainly by means of the so-called special subsystem for self-employed workers (Régimen Especial de los Trabajadores Autónomos). This special subsystem for the self-employed covers 90% of total self-employed workers regardless of whether they have employees and with no differences according to sector or occupation. The remaining self-employed workers contribute to other subsystems aimed at specific sectors such as the special agricultural subsystem (Régimen Especial Agrario) and the special subsystem for mariners (Régimen Especial de los Trabajadores del Mar).
It is especially relevant to stress important recent changes in the area of self-employment. Most importantly, the Self-Employed Workers’ Statute (Estatuto del Trabajador Autónomo) was approved in the Spanish Parliament in July 2007, after negotiations with the social partners. In essence, this new law provides a comprehensive and systematic legal framework covering all aspects of self-employment and brings together a number of proposals intended to bring the conditions of the general system of social security more into line with the special system of social security. Some of the most innovative elements related to the social protecion of self-employed workers can be summarised as follows:
Benefits for the cessation of activities have been established (prestación por cese de actividad), with the aim of protecting those self-employed facing an urgent situation due to the involuntary cessation of activities (a kind of unemployment benefit for self-employed workers), including both paternity and maternity leaves
Social protection for temporary sick-leave (prestación social por incapacidad temporal) is extended to all self-employed people and is received from the very first day of leave, in addition to the introduction of reductions in the social security contribution rates for some distinct groups of people (disabled people, artisans or young entrepreneurs, among others).
Self-employed workers are entitled to benefit from early retirement (jubilación anticipada), when they are involved in toxic, dangerous or painful activities, under the same conditions as the general regime of social security.
Within this innovative legal framework for self-employed workers, the role of economically-dependent self-employed workers is specifically defined (trabajador autónomo económicamente dependiente). They are understood as those who usually, personally and directly carry out an economic or professional activity for lucrative purposes and only for one client, from whom they receive, at least, 75% of their income. Among the measures, these self-employed workers have the right to enjoy 18 days of holiday per year as well as the right to be covered by insurance against work-related accidents and professional diseases and insurance against cessation of activities.
2. Recent trends in self-employment with no employees
The "Survey of the Active Population" (EPA), the most valuable and widely used source for Spanish employment statistics, shows that the total number of self-employed workers was 3,633,100 during the third quarter of 2007. Of that volume, something more of 60 per cent (2,213,100) are self-employed without employees. The first group accounts for 18.3 % of the total working population and the second group 11.1 %.
This information corresponds essentially with other sources. For instance, statistics from the Spanish National Insurance organisation show that self-employed affiliates totalled 3,405,192 in September 2007. Among these, 3,145,212 were subscribed to the special social security system for self-employed workers; 244,999 were covered by the system for farm workers (in 1993 the number was 443,397); and 14,981 were covered by the system for mariners.
The Central Directory of Enterprises (DIRCE), of the National Institute of Statistics shows that at the beginning of 2007 there were 1,706,140 enterprises without workers. This represents 51 % of the total number of firms, but there is a certain distance with the self-employed without employees of the EPA (1,237,792 enterprises with the legal form that corresponds to a physical person)
The Census of Population of 2001 (with data referring to the end of 2000), shows that 1,699,740 people operated as an "industralist or professional who does not use personnel" (1,157,983 men and 541,757 women). That number is quite close to the 1,897,700 given by the EPA.
At this moment women are less than a half that men in self-employment and in self-employment without employees. In the case of men, this second group makes up little more than 60 per cent of the first group, and in the case of the women, less of 63 %. Nevertheless the growth of female self-employed workers has been greater and much more constant that of the men.
Recent trends in self-employment (2000-2007) (in 1000)
| 2000 | 2003 | 2006 | 2007 | |||||
| Men | Women | Men | Women | Men | Women | Men | Women | |
| Self-employed (no.) | 2,168.2 | 946.7 | 2,169.0 | 965.9 | 2,418.8 | 1,098.1 | 2,488.5 | 1,144.6 |
| Self-employed with no employees (no.) | 1,358.0 | 539.7 | 1,279.6 | 565.1 | 1,423.6 | 645.1 | 1,495.3 | 717.8 |
Source: Survey of the Active Population. Instituto Nacional de Estadística, 3Q
Self-employment without employees has developed in the services sector in particular. The second-largest sector in terms of the numbers of self-employed workers is agriculture. However, whereas self-employment in services has been growing rapidly, it has been decreasing in agriculture. In the third quarter of 2007, the number of self-employed workers without employees was (according to the `Survey of Active Population´), 2,292,600 in services, 305,500 in agriculture, 304,100 in construction and 178,200 in industry. Inside the services sector, trading and retail stands out in terms of the numbers of self-employed workers, followed by transport and company services.
As for occupational distribution, slightly less than half of the number of self-employed workers – close to a million people - can be regarded as managers in full sense, professional or technical. The incidence of self-employment is very high also in commercial activity, and especially in retail, activities of hostelry, vehicle driving and company and personal services. One fifth of the self-employed without employees (433,600) is composed of craft workers and qualified workers in industry and the building sector; 196,200 are operators and installers; and 69,700 are unskilled workers. It is necessary to highlight the increasing importance of self-employment in IT-related business. the numbers in housekeeping and social care are also rising. Further, there are hundreds of thousands of workers (mostly women) who are not reflected at the statistics, who need attention and support.
With regards to gender, men are far more represented than women in construction, somewhat less in industry and transport, and less in the agriculture, although men outnumber women in terms of self-employment in all of these sectors. However the number of women is approaching that of men in the general services sector. Femenine presence has also been growing to very high levels in retail, company services and hostelry.
With regard to age, the majority of self-employed workers are found in the central age brackets: from 16 to 24 years, there are 80,700 self-employed workers without employees; from 25 to 59 years 1,380,500; from 60 to 64 years 161,900; and 65 and over, 48,000.
As for self-emploment from the perspective of nationality, at present the proportion of non-Spanish workers is just over 10 % (220,800), but it this number is growing very quickly. Of this number, less than 100,000 persons come from the European Union.
The occupation of the autonomous worker seems to be very productive. Whereas the national average working week for the entire workforce is 39.5 hours , self-employed people work 45.6 hours a week. Nevertheless, 114,700 self-employed are underemployed.
Economically dependent employment and ‘Bogus self-employment’
In general, there seems to be a certain evolution from ‘bogus self-employment’ towards economically dependent employment. In the near future, it seems to be probable that this trend will intensify. However the type of employment that looks likely to increase more quickly is autonomous working. At present, however, the proportion of two kinds of dependence is less than 20 %.
It seems probable that the Law 20/2007, of July 11, of “Estatuto del Trabajo Autónomo” (self-employed workers' statute), protects the self-employed and disminishes the relative volume of dependent employmnet. Some public entities and social initiatives stimulate self-employment. It seems predictable that this promotion mainly helps autonomous employment in the very proper sense.
‘Bogus self-employment’ appeared in the 1980s, particularly in the building sector. Large companies found that the most important focus for profits were the projects and the contracting with the final client and that the productive phases that demanded relatively low levels of skills and qualification and were easily controlable could be subcontracted. Companies of intermediate size also tended to concentrate themselves in activities in which they could better employ their specific know-how. At the base of the chain, companies whose focus was the operation of work proliferated, often with workers who were self-employed in formal terms.
The situation evolved, resulting in temporary employment agencies and services companies taking on a greater role. The volume of workforce supply for activities of low and middle qualification reduced labour cost. Service companies added organisational services to what they could offer. That attracted demand from companies which wanted to take advantage of the opportunities on offer, mainly in activities in which the objective is more to diminish the cost than to obtain quality (often in the called ‘nonwanted services’), But soon that objective led to great substitutions of dependent and skilled work with less skilled work that was simply hired rather than employed.
There are situations that do not correspond exactly to the above-mentioned. For example, there is an important group of professionals such as lawyers, architects, consultants or accountants, who works in conditions of economic dependency under an employer, but sometimes with certain personal identity. Often a significant proportion of remuneration for these workers comes in the form of performance bonuses.
We must also mention the sectors in which there are different types of self-emplyment but which are in reality dependent: transport and storage (and logistics in general), IT, consultancy, cleaning, maintenance, hostelry, retailing (and marketing promotion in other services, such as finance), and mainly temporary agencies.
It should also be mentioned that certain activities that do not correspond to the sector of the “client company” nor to that of an intermediate enterprise. Many companies have been focusing on the processes where they can obtain greater added value. Those activities usually correspond to their productive specificity and they therefore tend to externalise tasks which do not correspond to that central activity. This happens with activities related to transport, maintenance, cleaning, monitoring or marketing promotion. In addition, this happens in the case of activities with a larger added value, like IT, consultancy, marketing, accounting and human resources.
3. Collective representation and collective bargaining
In Spain, the two main trade unions, the Confederation of Workers' Commissions (Comisiones Obreras, CCOO) and the General Union of Workers (Union General de Trabajadores, UGT) have undertaken in different forms the representation of the self-employed. In addition, there is the Union of Professionals and self-employed Workers of Spain (Unión de Profesionales y Trabajadores Autónomos de España, UPTA), which has been campaigning for a long time for a self-employed workers' statute.
In turn, CCOO has kept the idea that essentially there are two classes of autonomous workers: some are small businesspeople, and even can be employers. Other are wage-earners. Accordingly, it believes that those workers should be represented by unions alongside other wage-earners.
That approach has led to CCOO not representing self-employed workers in a direct way and in a specific organisation, and to criticising the Autonomous Work Statute. The self-employed were considered as having a mixed profile, although priority is given to recognition of economically dependent workers.
Nevertheless, CCOO is promoting or supporting regional associations of autonomous workers, such as the "Association of Dependent Self-employed of Castille and Leon", TRADECYL. This association excludes autonomous workers with employees.
In turn, the main organisation for Spanish business, the CEOE, has also a confederacy of associations constituted by self-employed people, the Spanish Federation of Self-Employed (Federación Española de Autónomos, CEAT). In this organisation, the self-employed are considered as businesspeople.
There are other organisations for autonomous workers that belong neither to the large unions nor to the business confederation. The main one is the Self-employed Workers’ Association (Asociación de Trabajadores Autónomos, ATA).
ATA, UPTA and CEAT have negotiated with the government the Self-Employed Workers' Statute (Estatuto del Trabajo Autónomo), approved finally by Law 20/2007, of 11 July 2007. That law includes important achievements for autonomous workers, and especially for "economically dependent" workers. For example, "agreements of professional interest" can be negotiated, that will benefit the associates of the singnatory organisations. It is to be expected that this will contribute to reinforcing the representation of the self-employed, and collective bargaining for self-employed workers.
Another measure is setting up of the ‘Counsel of Autonomous Work’, which engages in debate and action with the aim of improving the situation of the self-employed. It is established at state level , but it is foreseen that it will also include representatives of the Autonomous Communities in Spain. If similar counsels are created at Autonomous Community level, this might led to them sending another representative to the Counsel at state level.
ATA is the largest of the organisations for autonomous workers that it linked neither to unions nor business associations. It is relatively young: it was set up in 1996, and in 2000 redefined its identity as a national confederacy of self-employed people. It says to have 440,000 members.
Another important,organisation, dating from 1990, is the Organisation of Professionals and Autonomous Workers (O.P.A.), in addition to the National Association of Businesspeople and Autonomous Professionals with Dependent Workers (ASNEPA).
Something characteristic of almost all the confederations cited is that they require their members to be affiliated to the National Insurance as autonomous workers.
They coincide also in the mention of their objectives: to participate in the negotiation of favorable conditions for autonomous workers, at state level and, thanks to its federated organisations, at territorial and sectoral level. The federal or confederal organisation facilitates articulated collective bargaining, in which demands at different levels are juxtaposed.
They aim also to participate in the creation of legal regulations and programmes aimed at promotion the interests of the self-employee, both in general terms and in specific areas, such as training in labour risks prevention.
The confederations and associated organisations also aim to participate in the consultative process, and in the social dialogue with business organisations. This links to the new functions opened by the Statute for Autonomous Work and the advance in protection in many autonomous communities. For example, LETA has opened the possibility of the legal defence of self-employed economically dependent workers.
The described confederations have sectorial and territorial organizations, with own instruments of other associative social organizations such as magazines or websites.
Something important in all this question is that the social dialogue on the self-employement, is not given in the traditional form of the labor relations. This type of negotiations probably take place among the economically dependent and the businesses of which they depend. However, to a more global scale the negotiation on the self-employement work is very diversified, among different institutional subjects, and objectives. For example, it is frequent that different organizations of autonomous, that negotiate simultaneously with public institutions, differ between itself and arrive at easy agreements with the seconds. We have the idea that the negotiation usually links with conflicts, but the self-employment requires many profiles of cooperation, and that also needs negotiation.
4. Employment and working conditions
According to the 2006 Survey on Quality of Life in Workplace (developed by the Spanish Ministry of Labour and Social Affairs), the majority of self-employed workers with no employees (67.7%) earn a net salary between €600 and €2,100 per month, slightly below the national average (78.7%). Meanwhile, lowest wage levels (less than €600 per month) and highest salaries (over €2,100 monthly) are more frequent among the self-employed group (16.8% and 15.5% respectively) than in the whole occupied population. The type of salary received also varies according to professional situation, as most of surveyed self-employed people have a type of mixed salary (83.3%), while the average Spanish worker basically receives a fixed wage (67.7%). In addition to monthly earned salary, over half of the self-employed without employees participate in a part of the company’s profits, whereas this participation rate goes down to 23.7% in the case of the fully employed people.
| Self-employed workers (% vertical) | Total Occupied Population (% vertical) | ||
| With employees | With no employees | ||
| Monthly net incomes | |||
| < 600 € | 5.2 | 16.8 | 11.3 |
| 600 - 1,200 € | 26.2 | 39.0 | 48.4 |
| 1,201 - 2,100 € | 34.4 | 28.7 | 30.3 |
| > 2,100 € | 34.3 | 15.5 | 10.0 |
| Type of salary | |||
| Fixed | 31.1 | 14.2 | 67.7 |
| Mixed | 62.3 | 83.3 | 27.3 |
| Variable | 6.6 | 2.5 | 4.9 |
| Participation in the firm’s profits | |||
| They participate | 75.6 | 53.5 | 23.7 |
| They do not participate | 24.4 | 46.5 | 76.3 |
Source: 2006 Survey on Quality of Life in the Workplace
As showed by the 2006 Survey on Active Population (developed the Spanish Institute of Statistics), self-employed workers with no employees work 5.8 hours more than the the average for the whole number of occupied people in Spain (40.9 hours per week compared to 35.1 hours of the whole occupied population). In addition, more self-employed workers with no employees work very long working hours than the national average - 28.6% work more than 50 hours a week compared to 11.9% of the whole occupied people. By gender, male employees work over six hours per week more than women, on a general basis, and a higher proportion of men work long working hours as well.
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| Total | Men | Women | Total % | Men % | Women % | |
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40.4 | 42.8 | 35.3 | 29.0 | 33.7 | 18.8 |
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42.9 | 44.3 | 38.8 | 35.3 | 39.0 | 23.9 |
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40.9 | 42.9 | 36.6 | 28.6 | 32.7 | 19.8 |
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35.1 | 37.9 | 31.0 | 11.9 | 15.8 | 6.3 |
Source: 2006 Survey on Active Population
According to National Statistics about Working Accidents (developed by the Spanish Ministry of Labour and Social Affairs), just 1.1% of the total number of accidents registered at work in Spain corresponds to self-employed workers (above all to the grioup without employees, that is, 0.9%), which is far below the proportion they represent over the total occupied population (17.8% according to the Spanish Institute of Statistics for the year 2006). Most of the working accidents have a minor level of seriousness, regardless of the professional category analysed. However, there is a slightly higher proportion of serious accidents within the group of self-employed workers without employees (4.0%) comparing to the national average (0.9%).
The gross number of work accidents occurring in the case of self-employed workers without employees has almost doubled since 2003 (an increase of 82%). Likewise, the contribution of this group to the total number of work accidents in Spain has slightly increased since 2003, from 0.5% to 0.9% in 2006.
| Distribution of working accidents | Degree of seriousness of working accidents 2006 | |||||||
| 2003 | 2004 | 2005 | 2006 | Total Accidents | minor % | serious % | fatal % | |
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99.3 | 99.3 | 99.1 | 98.9 | 901,688 | 99.0 | 0.9 | 0.1 |
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0.7 | 0.7 | 0.9 | 1.1 | 9.873 | 95.8 | 4.0 | 0.3 |
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0.2 | 0.1 | 0.1 | 0.2 | 1.415 | 96.1 | 3.5 | 0.4 |
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0.5 | 0.6 | 0.8 | 0.9 | 8.458 | 95.7 | 4.0 | 0.2 |
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100.0 | 100.0 | 100.0 | 100.0 | 911.561 | 99.0 | 0.9 | 0.1 |
* Including accidents causing leave during working time.
Source: Spanish Survey on Work Accidents
The innovative Self-Employed Workers’ Statute , which came into force on 12 October 2007, specifically refers to equal working conditions for male and female self-employed workers and, in particular, within the frame of work-life balance, following the 3/2007 Law for Effective Equality of Men and Women. In this respect, progress made in the field of both maternity and paternity leave are especially relevant (such as the right of a 13-day leave for fathers), and they were established in the same terms for both self-employed workers and the whole occupied population.
In any case, and as registered in the 2006 Survey on Quality of Life in the Workplace, 32.5% of female self-employed workers with no employees still consider maternity as a situation that has or might have hindered their professional career, a figure which is similar to the average for employed women in Spain (30.0%).
Work-life balance of Spanish self-employed women according to their opinion towards maternity situation, 2006
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29.5 | 32.5 | 30.0 |
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70.5 | 67.5 | 70.0 |
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100.0 | 100.0 | 100.0 |
Source: 2006 Survey on Quality of Life in the Workplace
As published by the 2006 Survey on Quality of Life in the Workplace, the general job satisfaction of self-employed workers without employees is rather good and very similar to the national average (7.4 and 7.3 points respectively in a scale of 0 to 10 points), although there are some differences concerning their working and employment conditions. Firstly, self-employed workers without employees are mostly satisfied with their level of autonomy (8.4 points), participation in the decision-making process (8.4 points), comradeship (7.9 points), personal development (7.7 points) and their working activity itself (7.6 points). Additionally, some working conditions are better valued by this group than the whole occupied population, such as the level of autonomy and participation, as well as work organisation and personal development.
Secondly, the analysed self-employed group is less satisfied with social security (3.3 points), holiday (4.9 points) and level of autonomy (4.9 points). Compared to the national average, they have lower satisfaction rates concerning social security and holidays, as well as with the working day and breaks.
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7.9 | 7.3 | 7.3 |
| 8.3 | 7.9 | 7.8 | |
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7.7 | 7.5 | 7.2 |
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7.8 | 7.4 | 6.7 |
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8.0 | 7.6 | 7.6 |
| 8.6 | 8.4 | 7.2 | |
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8.1 | 7.7 | 7.3 |
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8.8 | 8.4 | 6.7 |
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6.6 | 6.3 | 6.9 |
| 7.0 | 6.6 | 6.5 | |
| 6.0 | 5.9 | 6.3 | |
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6.0 | 4.9 | 6.9 |
| 6.9 | 5.9 | 6.2 | |
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5.0 | 3.3 | 4.3 |
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8.0 | 7.4 | 7.3 |
In a scale from 0 points (not satisfied at all) to 10 points (very much satisfied)
Source: 2006 Spanish Survey on Quality of Life in the Workplace
Finally, as far as some possible negative aspects of the workplace is concerned, self-employed workers with no employees seem to be moderately affected by the level of monotony and stress (4.9 points and 5.8 points respectively), similar to the national average (5.0 points and 5.6 points respectively).
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4.3 | 4.9 | 5.0 |
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6.7 | 5.8 | 5.6 |
In a scale from 0 points (not affected at all) to 10 points (very much affected)
Source: 2006 Spanish Survey on Quality of Life in the Workplace – Spanish Ministry of Labour and Social Affairs
5. The social partners’ positions
The most recent phase of collective bargaining on self-employment has been dominated by the negotiation of the Self-Employed Workers' Statute. This was approved finally by Law 20/2007, of 11 of July. Of the principal trade unions and associations, two have negotiated the Statute and approve it essentialy. They are the General Union of Workers (Union General de Trabajadores, UGT), trough the Union of Professionals and self-employed Workers of Spain (Unión de Profesionales y Trabajadores Autónomos de España, UPTA, the main promoter of the Statute), and the Self-employed Workers’ Association (Asociación de Trabajadores Autónomos, ATA).
The Spanish Federation of Self-Employed (Federación Española de Autónomos, CEAT, belonging to great confederacy or employers, the CEOE) has also participated in the negociation, but has criticised the protection to the economically dependents, and the margin of collective bargaining acknowledged.
The Trade Union Confederation of Workers’ Commissions (Confederación Sindical de Comisiones Obreras, CC.OO) has criticised the fact that, in its belief, the bargaining processes were based on consultation between associations rather than between trade unions. It believes that there was no need to regulate the activity of self-employed workers beyond the existing regulations. Beyond the opinions about its main contents, CCOO believes that the Statute is effective in an incomplete way. Certain dispositions will obtain full effectiveness in some months, and in a way that in some cases implies certain negotiation. On the other hand, it states that the law requires norms of development, and these will require certain negotiation.
On the other hand, there is a view that the Statute will influence the social dialogue. For example, agreements of professional interest can be negotiated for economically dependent workers, which will only cover the members of the signatory organisations. Therefore, it seems probable that this will help to reinforce the representation of the self-employed.
Another area is the Counsel of the Autonomous Work (LETA), that allows many advances to be made in many areas that will help to support autonomous workers.
Up to now we have only cited LETA as a factor that has contributed to the dynamisation of bargaining, but it has also a great importance in terms of the cooperation that has been opened in several autonomous regions.
However, there are some challenges and further issues:
a) In terms of representation, LETA has set out the fundamental rules, but additional rules will be required. The organisations of self-employed workers are trying to influence this, and to increase their presence and action in all levels and fronts, including the National Counsel and the autonomous counsels.
b) In collective bargaining, the organisations are prepared to negotiate "agreements of professional interest" at a variety of levels and with different partners.
c) Concerning legal regulation, politics and programmes of support, the main organizations are trying to increase their power and to apply it.
An important challenge for collective bargaining, cooperation and promotion, is labour risks prevention.There are activities in which the prevention of risks is so complex that it requires extremely specific knowledge.The self-employed sometimes have difficulties in overcoming these challenges
6. NC Commentary
Self-employment is extremely important for the Spanish economy and labour market. According to the available figures provided by the Spanish Labour Force Survey, Spanish self-employed workers account for around 3.6 million people, out of which 2.2 million are self-employed without employees (representing 18.3% and 11.1% of the total Spanish workforce, respectively). This importance of self-employment is particularly relevant in some sectors, such as retail distribution, HORECA, transport or personal and enterprise services sectors. From a working conditions perspective, Spanish self-employed workers with no employees are characterised by longer working hours and relatively unsatisfactory holiday and working time conditions, as well as difficulties in achieving a work-life balance, whereas in other aspects they benefit from relative better conditions (autonomy, personal development, decision making, work organisation and physical environment).. It is worth stressing that the recent “Self-Employed Workers’ Statute” constitutes a giant step towards improving the social protection of Spanish self-employed workers, especially in aspects such as the provision of benefits for the cessation of activities, benefits in the case of temporary sick leave and early retirement possibilities. Moreover, and for the first time, there is an attempt to regulate so-called economically-dependent self-employed workers (or “bogus” self-employed), although there are important discrepancies on this issue amongst the different Spanish self-employed representative organisations.
Antonio Corral, IKEI, CIREM, Esteban Villarejo, CIREM