The Supreme Court upheld a reduction of the fine imposed on a Zaragoza bar to €4,000 after it failed to register a part-time employee with Social Security before her first shift. The court classified the breach as serious, not very serious, because the job could have been compatible with unemployment benefits if properly declared. The case began with a labour inspection on February 23, 2018. Inspectors found a woman in uniform serving drinks behind the counter and doing the same work as other staff. She was not registered with Social Security and was receiving unemployment benefits.
When inspectors identified themselves, the woman left the premises. The bar’s administrator later said she had come only for an interview and started working because of a misunderstanding. The employee, but, told authorities she had agreed to begin work that day.
The business registered her with Social Security the following day, issuing a temporary, part-time contract as an extra assistant. She later lost her unemployment benefit and had to repay €160.26 she received while working.
Legal Grounds for the Reduced Fine
The labour inspectorate initially imposed a €10,001 penalty, classifying the infringement as very serious. In Social Chamber ruling 183/2025, appeal 2569/2023, the Supreme Court upheld the reduction to €4,000. It found that the contract’s part-time nature mattered: Spanish rules allow unemployment benefits and part-time work to be combined in specified circumstances, if the worker requests compatibility and meets the applicable requirements.
That compatibility is not automatic. A worker must notify the State Public Employment Service (SEPE) and complete the required administrative steps. When compatibility applies, the benefit is adjusted in proportion to the hours worked. It does not entitle the worker to receive full benefits alongside wages. Applications are subject to procedural deadlines, including a 15-business-day period in certain circumstances.
Under the General Social Security Law, unemployment benefits are generally incompatible with employment, subject to defined exceptions. This distinction matters under the LISOS, Spain’s Law on Infractions and Sanctions in the Social Order: the court held that a job that could be compatible with benefits if properly declared did not meet the threshold for the very serious classification imposed by the inspectorate.
Obligation to Register Before Work Begins
The reduced penalty did not remove the bar’s duty to register its employee before work began. Spanish rules require employers to register new hires with Social Security before employment starts. Allowing the woman to work her shift without registration constituted a serious infringement under Article 22.2 of the LISOS.
The Supreme Court’s decision followed an earlier ruling by the High Court of Justice of Aragón, which had reduced the fine from €10,001 to €4,000. The case separates two issues: the employer’s obligation to register a worker before her first shift, and whether the work is compatible with her benefit. Receiving unemployment benefits does not by itself make every instance of unregistered employment a very serious infringement. The classification depends on the circumstances, including whether the benefit could have been compatible with that job.
Context and Implications
The ruling highlights the need to complete Social Security registration before an employee starts work, including temporary and part-time staff. For workers receiving unemployment benefits, part-time employment may be compatible only under specified conditions and after they complete the required administrative steps. Failing to register the employment or request compatibility can lead to sanctions. Workers may also lose benefits and have to repay amounts received.
