Balearic Times — News from Mallorca, Menorca, Ibiza & FormenteraENESFRDE·news@balearictimes.com·Send a tip·Palma·--:--
← Back to Economy
Economy2 min read

Supreme Court lets temp agencies recruit workers abroad for jobs in Spain again

The court struck down the 2024 rule excluding ETTs from hiring at source, a system that has brought more than 25,000 workers to Spain.

Spain’s Supreme Court has overturned a government rule that barred temporary employment agencies, known in Spain as ETTs, from recruiting workers in their home countries and bringing them to Spain for seasonal and temporary jobs.

The rule

The 2024 reform of Spain’s immigration regulations excluded temporary employment agencies from the “hiring at source” system, under which workers are recruited abroad for specific jobs in Spain. The Supreme Court has now ruled that the exclusion was not properly justified and lacked a sufficient legal basis, and has annulled it.

How hiring at source works

Under the system, a company or agency selects candidates in their home countries, arranges visas, contracts, travel and housing, and brings them to Spain for a set period. When the job ends, the workers return home, with the possibility of coming back in future seasons.

According to data from the Ministry of Inclusion, Social Security and Migration, the model has brought 25,767 foreign workers to Spain.

Why companies use it

Many employers struggle to fill certain jobs, particularly in agriculture, construction and hospitality, where work can be seasonal, physically demanding or poorly paid, or requires specific experience. Recruitment abroad has become an important tool for these sectors, especially during harvests and the tourist season.

What changes

The ruling allows ETTs to return to the system, recruiting workers abroad, handling the paperwork and arranging accommodation on behalf of the companies that need staff.

The usual obligations remain: employers must provide suitable accommodation, comply with immigration procedures and ensure workers’ rights are respected.

The debate

Supporters of the ruling say it gives employers a flexible, legal way to meet labour shortages. Trade unions have long been more cautious about the role of temporary agencies, warning that workers recruited abroad can be vulnerable to poor housing and working conditions, and calling for strict oversight.

Relevance for the Balearics

In the islands, where hotels, restaurants and construction firms struggle to find staff every summer — not least because of the shortage of affordable accommodation — hiring at source is one of the options businesses are exploring. The housing obligation attached to the system, however, remains a major obstacle on islands where finding a room is itself a challenge.

Keep reading

More Economy

Economy14 Jul 2026

CaixaBank rolls out its new shop payment platform with Calzedonia

The Italian retailer, part of the group that owns Tezenis and Intimissimi, has installed the system in more than 280 shops in Spain.

Read More
Economy11 Jul 2026

House prices stall in central Madrid, Barcelona and Valencia as the boom moves outwards

Asking prices in outer districts rose faster than in city centres between January 2025 and April 2026, narrowing the gap.

Read More
Economy11 Jul 2026

Xavier Niel becomes Vodafone's largest shareholder with €5.2bn stake bought from e&

The French telecoms billionaire is buying 16.2% of the group from the UAE's e& through his company Vega and says he has no plans for a full takeover.

Read More