The reforms undertaken in 1994 and 1997 in Spain have introduced high flexibility in the labor market. The most recent reform has rationalized and simplified the labor contract system, by reducing the number of available contract forms from 18 to 9; it has also clarified the terms of dismissal and introduced a new type of long-term contract with lower dismissal compensations. As the Spanish growth rate between 1996 and 1999 was way above the EU average, the increase in the employment rate outpaced the rest of Europe, reaching 3.5%, which compares favorably with the 1.1% EU average. A great deal of this improvement was due to the market labor reform. 

Source and more information in  www.investinspain.org (The Spanish Investment Promotion Agency):

   Types of Contracts
   Working Hours