A New Chapter for Spain’s Labour Market

Spain

History in the Making 

Starting in September 2025, Spain will reduce the standard working week to 37.5 hours, without any reduction in salary. This marks the first adjustment to weekly working hours since 1983 and is part of a broader effort to modernise labour regulations, improve work-life balance, and respond to evolving social and economic needs. The reform was agreed through formal negotiations between the government and major trade unions, including CCOO and UGT, and signed on 20 December 2024.

Stronger Digital Protections for Staff

In addition to shorter hours, the reform strengthens the right to disconnect. Employees are no longer required to respond to communications outside of their agreed working hours, and employers will face tighter restrictions on the use of surveillance tools such as geolocation and video monitoring. These measures aim to protect rest time and personal privacy, especially in sectors where digital oversight has become more common.

Impacts on Employers

Employers will now be required to use digital systems for tracking working hours that are transparent, dependable, and easy to access. These systems must also be remotely accessible to the Labour Inspectorate and employee representatives. Penalties for non-compliance will be applied per employee affected, making enforcement more targeted and impactful. This is relevant for industries such as hospitality, retail, and agriculture, where extended shifts are a standard process. 

Period to Adapt

Businesses and unions have until 31 December 2025 to update collective agreements in line with the new law. This transition period allows companies to review internal policies, engage with employee representatives, and ensure that all workers—whether covered by collective agreements or not—benefit from the reform.

Building on Spain’s Labour Tradition

Spain has a long history of progressive labour legislation, having introduced the eight-hour workday in 1919 following the La Canadiense strike. This latest reform continues that legacy, reaffirming Spain’s role as a leader in European labour policy. Vice President and Minister of Labour Yolanda Díaz described the reform as a “debate about life” and emphasised that it responds to a widely recognised social need: “Today we begin to recover the most valuable thing we have—time”.

Simon Duff, Director at Leap29, shares his perspective: 

Spain’s decision to shorten the working week to 37.5 hours without reducing pay is a bold shift that prioritises wellbeing, digital boundaries, and modern work-life balance. By reinforcing the right to disconnect and tightening rules around surveillance, it challenges employers to rethink how they measure productivity and respect employee autonomy. This reform sets a strong example for progressive labour policy across Europe”

Leap29 Recommendations 

For Spanish employers, acting early is key to navigating the upcoming labour reforms. Review work schedules and resource plans now to align with the new 37.5-hour week and update time-tracking systems to meet legal standards.  

Refresh internal policies on after-hours communication and employee privacy and start conversations with unions or staff representatives ahead of the 2025 deadline. 

These steps not only ensure compliance—they also underline a commitment to fair, forward-thinking working conditions in Spain’s evolving labour market. 

How Leap29 Can Help

Leap29’s Spanish EOR Services can help manage your international hires, taxes, benefits and payroll. Combining extensive experience in international business expansion with up-to-date knowledge of Spanish employment laws, our expert EOR team can save you time, money and resources when expanding into Spain.

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