1. Virginie Molinier Florence, October 30th, 2014 IS MY COUNTRY ATTRACTIVE TO FOREIGN INVESTORS? - SPAIN FOREIGN INVESTMENT COMMISSION AT THE 58 th UIA CONGRESS IN FLORENCE

2. Overview 2 Employment law: -Employment legislation is contained in “Estatuto de los Trabajadores”: the Employee Rights regulation and Collective Bargaining agreements. -An unusual feature of Spain’s employment legislation is the special Status of executive manager, “alto directivo” Different types of employment agreements: -Fixed Term Contracts – possible only in specific cases and for a limited period of max. 24 months. -Full-time/Part-time employment agreements: statutory working time of 40 hours per week. -Paid vacation: minimum 30 calendar days.

3. Attractive points: 1. Social Security Contributions 3 The main costs: -Social security rates (employer):31.55% -Social security rates (employee): 6.35% -Monthly contribution basis:  Minimum : 753 €  Maximum : 3.597 € Investment support measures: -Since February 2014: an employer hiring someone on a permanent contract between 25 February and 31 December, is eligible for a reduced employer’s social security contribution of a lump sum of € 100 per month, per contract, for a period of two years from the date of hire.

4. Attractive Points: 2. Flexible Hiring 4 Act of 2013 established a new type of employment contract: «contrato indefinido de apoyo a los emprendedores», or employment agreement for unlimited period of time to support entrepreneurs, which allows a probation period of one year. Increased possibilities in hiring apprentices and trainees: the age limit is raised to 30.

5. Attractive Points: 3. Flexible Dismissal Provisions 5 Common characteristics: -Notice period : 15 days. -Severance payment: Since 2012, decrease from 45 days’ salary per year of service to 33 days in case of dismissal without fair cause (up to a maximum of 24 months) dismissal for economic, technical, organisational or productivity reasons: 20 days’ salary per year of service (up to a maximum of 12 months).

6. Attractive Points: 3. Flexible Dismissal Provisions 6 Grounds for dismissal: -Disciplinary: causes established by applicable Collective Bargaining agreement. -Objective: a) ineptitude b) lack of flexibility/adaptability c) absenteeism (since 2012 opportunity to dismiss in cases of absence of 20% of the working time in 2 consecutive months) d) insufficient cash flow e) economic, technical, organisational or productivity issues

7. Attractive Points: 3. Flexible Dismissal Provisions 7 Dismissal for economic, technical, organizational or productivity issues: Greater flexibility in the grounds for dismissal: for current or predicted losses or persistent decrease in incomes or sales. Easier procedure: abolition of prior administrative authorization required for collective dismissal.

8. Attractive Points: 3. Flexible Dismissal Provisions 8 Increase in employers’ bargaining strength over employees: right to change some conditions of employment without employees’ prior consent: -relocation; -change in function and responsibility; -salary (up to 10% in case of losses in income for 9 consecutive months); -working time (reduce working time up to 70%).

9. Attractive Points: 3. Flexible Dismissal Provisions 9 Common characteristics: -Notice period : 15 days. -Severance payment: Since 2012, decrease from 45 days’ salary per year of service to 33 days in case of dismissal without fair cause (up to a maximum of 24 months) dismissal for economic, technical, organisational or productivity reasons: 20 days’ salary per year of service (up to a maximum of 12 months).

10. 10 ABOGADOS 7, rue Margueritte – 75017 Paris Telf.: + 33 1 44 40 12 90 8, rue Richer de Belleval – 34000 Montpellier Telf.: + 33 4 30 63 83 05 Avda. Diagonal 442 3º 2ª – 08037 Barcelona Telf.: +34 93 238 62 00 Calle Serrano 63, 2º D. 28006 - Madrid Telf.: +34 91 083 18 84 v.molinier@mbabogados.eu Thank you