LABOR AND SOCIAL SECURITY LAW
While recent years have already been turbulent for labor law, 2025 is shaping up to be anything but calm. The Government is planning to approve labor reforms that will expand workers’ rights and impose greater obligations on companies. The most notable changes include:
Working Hours Reform
Pending final approval by Congress, the Council of Ministers has pushed forward a Draft Bill that introduces changes to working hours.
The proposal sets the maximum working week at 37.5 hours on average annually without any reduction in salary. Part-time contracts that currently meet this threshold will automatically be considered full-time contracts. Meanwhile, contracts with fewer hours will maintain their schedule, but salaries will increase to align with the new legal maximum working hours.
Additionally, companies will be required to implement a digital working hours register accessible to the Labor Inspectorate to verify compliance. Sanctions for time-related breaches will become stricter, with fines not only increased but applied per affected worker.
The bill also seeks to reinforce the right to digital disconnection by making it non-waivable, meaning no worker can voluntarily renounce this right.
Dismissal Compensation System Reform
Following a non-binding decision by the European Committee of Social Rights in response to a UGT union inquiry, the Government plans to overhaul dismissal compensation. The reform proposes an individualized compensation system that considers the worker’s personal circumstances, rather than solely basing severance pay on length of service and salary.
While intended to enhance worker protection, this change could create significant legal uncertainty and potentially increase litigation.
End of Automatic Contract Termination Due to Permanent Disability
Companies will be required to adapt job positions or relocate employees declared permanently disabled, instead of automatically terminating their contracts.
Mandatory Algorithmic Audits
Businesses will need to conduct algorithmic audits to identify and correct discriminatory biases in automated decision-making processes. These audits will involve union representatives in both their design and evaluation. Additionally, a “risk of automation” indicator will be introduced to help the Ministry identify workers most vulnerable to automation.
Internship Statute Approval
A new Internship Statute will establish a legal framework for internships, aiming to protect students and prevent fraudulent use of internships as disguised labor.
Union Representation on Company Boards
A proposal is under discussion to allow union representatives to participate in company boards of directors, giving unions a real say in strategic business decisions.
New Framework for the Right to Strike
Legislation will prioritize protecting workers’ rights during strikes and preventing retaliatory measures against participants.
Since the political party behind most of these reforms governs with a minority in Parliament, it remains to be seen which proposals will ultimately be approved and which will fall by the wayside. We’ll need to stay vigilant because a bumpy ride is ahead!
