Else Beekman
Luxury real estate agency Engel & Völkers must pay €6.4 million in unpaid Social Security contributions after employing 569 commercial agents in Valencia as false self-employed between 2018 and 2023. The ruling by the Valencia High Court (TSJCV) upholds an investigation by the Labour Inspectorate.
Inspectors found the company controlled how these supposed freelancers worked, assigning sales areas, fixing commission rates and organising teams under company-appointed leaders. The court concluded this amounted to an employment relationship, not genuine self-employment.
Engel & Völkers has appealed the €6.4 million demand to the Supreme Court and says it no longer operates with this model. Since 2024, the firm claims to have hired its sales staff directly to “professionalise” the role.
Wider industry impact
The case mirrors other recent actions by the Labour Inspectorate, which has stepped up enforcement against false self-employment across sectors. In 2024 alone, inspectors reclassified 7,234 workers and imposed €73.1 million in fines and back payments.
The company, of German origin, has faced similar scrutiny in its home country, with authorities there also investigating its labour practices.
Calls for regulation
Spain’s real estate sector, comprising around 20,000 agencies and over 100,000 workers, has long mixed employed and self-employed agents. However, the president of the industry association FADEI, Miguel Ángel Gómez Huecas, warns that differing interpretations by inspectors create uncertainty for businesses. He also calls for a national register of estate agents to regulate working conditions.
Ongoing crackdown
The Labour Inspectorate’s crackdown began under former minister Magdalena Valerio. It now continues under current deputy prime minister Yolanda Díaz. Previous high-profile cases involved food delivery riders and workers in the meat industry.