A Zaragoza bar has been fined €4,000 for failing to register a new part-time employee with Social Security before her first shift. The Supreme Court ruled the violation was serious, not very serious, due to the job's part-time nature and the potential compatibility with unemployment benefits.
On February 23, 2018, labor inspectors entered a bar in Zaragoza and found a woman serving drinks behind the counter, dressed in uniform and performing the same duties as other staff. She was not registered with Social Security and was still receiving unemployment benefits at the time.
When the inspectors identified themselves, the woman left the premises. The bar's administrator later claimed she was only there for an interview and had started working due to a misunderstanding. However, the employee told authorities that 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. As a result of working while on unemployment, the woman lost her benefit and was required to repay €160.26 she had received in error.
Legal Grounds for the Reduced Fine
The initial penalty imposed by the labor inspectorate was €10,001, classifying the infraction as very serious. However, the Supreme Court, in its Social Chamber ruling 183/2025 (appeal 2569/2023), upheld a reduction to €4,000. The court found that, because the contract was part-time and Spanish law allows for partial compatibility between unemployment benefits and part-time work (if properly declared), the violation did not meet the threshold for a very serious offense.
According to the General Social Security Law, unemployment benefits are generally incompatible with employment, except when the job is part-time and the worker requests compatibility, with the benefit adjusted accordingly. The Supreme Court emphasized that only cases where the benefit is strictly incompatible with the job should be classified as very serious under the LISOS (Law on Infractions and Sanctions in the Social Order).
Obligation to Register Before Work Begins
Despite the reduction, the court made clear that the bar failed in its basic legal duty. Spanish regulations require employers to register new hires with Social Security before they begin working. Allowing the employee to start her shift without registration constituted a serious infraction, as outlined in Article 22.2 of the LISOS.
The Supreme Court's decision aligns with the earlier ruling of the High Court of Justice of Aragón, which had already lowered the fine from €10,001 to €4,000. The court clarified that the mere fact of receiving unemployment benefits does not automatically make the infraction very serious; it depends on whether the benefit is compatible with the specific employment situation.
Context and Implications
This case highlights the importance for Spanish employers of strictly adhering to Social Security registration rules, even for part-time or temporary staff. It also illustrates the legal nuances around combining part-time work with unemployment benefits, which is permitted under certain conditions if properly declared. Failure to comply can result in significant financial penalties and the loss of benefits for workers.
