Lorraine Williamson
Spain’s Ministry of Labour and trade unions have finalised an agreement to reduce the maximum working week to 37.5 hours, with no reduction in pay.
After nearly a year of negotiations, the deal will amend the Labour Statute to enshrine the new working hours, tighten time-tracking regulations, and increase penalties for non-compliance. However, the employers’ association CEOE has refused to endorse the plan.
Changes to the Labour Statute
The reform will alter Article 34 of the Labour Statute. It states: “The maximum duration of the regular working day will be an average of 37.5 effective working hours per week on an annual basis.” Hours exceeding this limit will be classified as overtime.
Timeline for implementation
The transition is detailed in the agreement’s first provision. Companies with working weeks exceeding 37.5 hours will have until 31 December 2025 to adjust their practices. Parliament must still approve the changes, but the Labour Minister, Yolanda Díaz, has hailed the agreement as a major milestone. Once passed, businesses will have until the end of the year to comply.
Mixed reactions from political and business leaders
The proposed reform has sparked debate among political parties. The Socialist Party (PSOE) has expressed concerns over its timeline, suggesting implementation could begin later, possibly in 2026. Meanwhile, the Catalan party Junts has shown reluctance to support the measure.
Unai Sordo, leader of the CCOO union, warned that CEOE might attempt to block the legislation in parliament. The unions have pledged to mobilise if necessary. UGT leader Pepe Álvarez urged the employers’ association to reconsider, leaving the door open for further dialogue.
Key provisions: No pay cuts
The agreement explicitly prohibits salary reductions as part of the reform. The additional provisions ensure that any reduction in working hours will not lead to diminished pay or less favourable conditions for workers.
Evaluation and broader implications
The government has committed to reviewing regulations on special working hours within 18 months. Sectors such as hospitality, agriculture, transport, and shift work will see their standards aligned with the new maximum hours.
The reform could also reintroduce incentives for small and medium-sized businesses, including subsidies for hiring additional staff and digitising time-keeping systems. These measures were initially proposed to win CEOE’s support but were rejected by the organisation.
Next steps in parliament
The Labour Ministry and unions face a critical parliamentary debate, where amendments may adjust the content or implementation timelines. The outcome will determine how swiftly the reform is rolled out and whether additional support measures for businesses are included.
The reduction of the working week is a significant step in reshaping Spain’s labour laws. Yet, its success depends on overcoming political hurdles and addressing concerns from employers.
Also read: Spain´s working week