Labour Reform 2025: Key Implications for Companies in Spain
The recent publication of Organic Law 1/2025 brings significant changes that directly impact business management, necessitating a comprehensive review of labour policies.
The recent publication of Organic Law 1/2025 brings significant changes that directly impact business management, necessitating a comprehensive review of labour policies.
The Spanish government is reducing the maximum working hours to 37.5 hours per week, marking the first adjustment of this kind since 1983. This measure forces companies to reorganize their work schedules to comply with new regulatory requirements.
In Spain, Law 4/2023 enhances the rights of LGTBI and trans individuals in the workplace. Companies must adjust their internal policies to ensure equality and inclusion by implementing specific plans that uphold diversity and prevent discrimination.
Following Supreme Court ruling 544/2024, Absolute Permanent Disability and Major Disability benefits are now incompatible with any work requiring Social Security contributions. The new criteria allow only minor, occasional work that does not involve registration or contributions, aiming to protect genuine cases of income loss due to disability.
In Spain, actual working time is when the worker is at the employer’s disposal. But what is the consideration of travel, breaks, attendance and on-call times?
Following the 2022 labour reform, the types of temporary contracts in Spain have undergone significant changes. These measures aim to adapt the labour market to the new socio-economic needs and realities.
The employment relations of Senior Management, regulated by Royal Decree 1382/1985 in Spain, have special conditions, especially concerning contract terminations, where the sometimes less favourable conditions for Senior Managers (compared to regular employees) generate frequent conflicts after the termination of the working relationship.
In a complex labor environment, companies engaged in diverse activites face uncertainty regarding the application of collective bargaining agreements in industrial relations. There is an ongoing debate about the feasibility of utilizing different agreements versus a single agreement. Critical factors such as corporate purpose, turnover, and contracting activities play a pivotal role in making this decision.
In recent years, the use of Professional Employment Organisations by foreign companies to hire workers in Spain without registering with the Spanish authorities, has become increasingly popular. Although this practice is legal in many EU countries, it can result in the declaration of an illegal transfer of workers within the Spanish legal system.
The collective dispute is a procedure invoked due to disagreements in labour matters in Spain. It involves a general interest claim made by a group of workers regarding the application and interpretation of a state regulation, collective agreement or a decision or practice adopted by a company.