Labour reforms in Spain: current status and business obligations
The year 2025 is marked by significant labour reforms in Spain, with some measures already in effect and others still under parliamentary review. Companies must remain alert and proactive to ensure legal compliance and anticipate internal adjustments as the legislative landscape evolves.
Working hours reduction: pending approval
The proposal to reduce the maximum legal working week from 40 to 37.5 hours was approved as a draft by the Council of Ministers in May 2025. While it has strong support from trade unions, the measure still requires parliamentary approval and publication in the Official State Gazette (BOE) before it becomes law.
Final approval is expected in the second half of 2025, with potential implementation by the end of the year or during 2026. Although not yet mandatory, companies are advised to begin assessing the potential impact on working schedules, shifts, and salary structures.
Digital time tracking: already mandatory
The requirement to digitise employee time tracking is already in force. Throughout 2025, all companies —regardless of size or sector— must implement a digital system capable of reliably recording clock-in and clock-out times, breaks, and overtime hours.
This measure is being regulated by decree, allowing immediate application without the need for additional parliamentary procedures. Time tracking systems must comply with data protection laws and are ideally integrated with payroll and HR processes. The Labour Inspectorate will have direct access to these records when requested.
Dismissal reform: under discussion
A review of the legal framework surrounding dismissals is also underway. Proposed changes include stricter justification requirements, updated severance calculations, and stronger protections for vulnerable groups. However, no specific modifications have yet been approved, and legislative discussions are still ongoing.
Regulatory transition and internal planning
2025 is shaping up to be a year of regulatory transition. While some measures are already enforceable, others will require gradual adaptation once approved. Reviewing internal policies and planning ahead will be key to ensuring legal certainty and leveraging the opportunities that these reforms may bring to the modern workplace.