Labour law updates on the horizon: summary of measures that could be approved in Spain in 2025
Published on 22nd Jan 2025
Significant changes in labour legislation are expected, affecting both workers’ rights and workplace organisation
While it is challenging to predict the exact outcome of future legislative reforms, certain initiatives are anticipated based on statements from government officials and Spain’s international commitments. The reforms aim to adapt the law to the country’s new economic and social realities. Below, we highlight potential reforms and measures that could significantly affect workers’ rights and workplace organisation in 2025.
Reduction of maximum legal working hours
On 20 December, the Ministry of Labour and Social Economy published the draft law on the reform of the Workers' Statute and LISOS, which addresses key issues such as the reduction of the maximum working week to 37.5 hours, digital disconnection and time registration.
It is expected that if the published text passes through the parliamentary process without significant changes, the measure will come into force in 2025 and will be accompanied by a tightening of the obligation for companies to keep time records, with fines of up to €10,000 per worker for companies that fail to do so.
Elimination of permanent incapacity as automatic grounds for termination
Under the planned amendment to Article 49 of the Workers’ Statute, scheduled for early 2025, permanent incapacity will no longer automatically result in termination of employment. Employees will have 10 days after being deemed permanently incapacitated to request a job adaptation, or a transfer to a suitable vacant position.
To protect employees during this transition, workers will continue to receive temporary incapacity benefits while awaiting the company’s response. Additionally, criteria will be introduced to determine when job adaptations may impose undue hardship on employers, giving them grounds to deny the request.
New solidarity social security contribution
Starting on 1 January 2025, a new solidarity social security contribution is being introduced, targeting companies and high-income workers. Phased in gradually until 2045, this measure will raise social security contributions for salaries exceeding the maximum contribution base (€4,720.50 per month in 2024).
The additional contribution will apply exclusively to salaries above this threshold and will be shared proportionally between workers and employers, as is the case with existing common contingency contributions.
Increase in the minimum wage
From January 2025, the minimum wage (SMI) will rise to €1,191 per month across 14 payments. This increase aims to enhance the purchasing power of low-income workers and reduce wage inequality in Spain. Simultaneously, the maximum Social Security contribution base will also increase, with implications for both high-earning employees and their employers.
Possible approval of the trainee statute
The Ministry of Labor and Social Economy has indicated plans to resume discussions on the Trainee Statute, a measure designed to regulate the working conditions of trainees. Currently, interns face vulnerability regarding their labour rights.
Although the initial proposal was rejected by employers in mid-2024, it is expected to be revisited in 2025 to improve the legal protections for interns in Spain.
Extension of maternity and paternity leave to 20 weeks
Another proposed reform for 2025 is the extension of maternity and paternity leave to 20 weeks, from the current 16 weeks. While no specific implementation date has been set, this measure would significantly enhance parental rights in Spain.
Changes to compensation for unfair dismissal
The European Committee of Social Rights has pointed out that Spanish legislation on compensation for unfair dismissal does not comply with the requirements of the European Social Charter, as it does not always provide sufficient compensation for the damage caused to the employee. Therefore, it cannot be ruled out that the government will introduce some kind of amendment to labour legislation to bring severance pay as close as possible to European requirements.
Osborne Clarke comment
Despite political uncertainty, 2025 promises significant reforms in Spain’s labour landscape, aiming to balance workers’ rights with labour market demands and European regulations. While many initiatives remain under negotiation, understanding these potential changes is crucial, as they could have a profound impact on labour relations and workplace dynamics.
