Second vice president and Minister of Labor Yolanda Díaz unveiled the government’s labor agenda for the new legislative session, laying out reforms aimed at reshaping work in Spain over the next four years. The plan centers on shortening the weekly work time, clarifying dismissal criteria and compensation, reforming part-time work, and strengthening worker representation on the boards of large companies.
The previous legislative period brought a wave of labor reforms, including telework measures and broader changes to the labor framework. This new era is expected to bring notable shifts in workers’ daily routines and in the way businesses operate. The scope and impact of these measures will depend on social dialogue and the parliamentary arithmetic that the governing coalition can assemble in each case, as observed by analysts and stakeholders.
One of the first topics to be addressed is reducing the maximum weekly hours, with discussions set for a morning meeting. Díaz highlighted this as one of the Sumar coalition’s flagship commitments during the election campaign, noting broad support even among some voters on the right side of the spectrum.
The objective is clear: cutting the current 40 hours to 38.5 hours in 2024 and achieving 37.5 hours by the end of the legislative period. The labor ministry will examine how work organization should adapt to diverse business needs and how the annual hourly distribution should be managed. Díaz pressed for a tripartite agreement whenever possible; if this cannot be achieved, a bilateral arrangement with employers would be pursued.
Dismissal reform
The minister is looking toward Europe to gauge how future decisions might be interpreted by European institutions. The aim is to secure favorable guidance that would support reform if necessary, while the Justice Department’s stance remains nuanced. In May 2022, the UGT criticized the current terms of dismissal before the European Committee of Social Rights, arguing that the Spanish system did not adequately protect workers. Díaz intends to hinge the reform on any positive interpretation from European bodies, aligning local norms with broader standards.
Díaz had proposed plans to regulate termination terms before the elections so that compensation would reflect the real cost to employers and act as a deterrent when appropriate. The reform envisions aligning national practice with European standards on minimum compensation, as used by several courts to raise awards above statutory minima. In the short term, the government plans to remove the legal basis for abrupt incapacity as a cause for dismissal while refining the grounds on which layoffs can be justified.
Bias, interns and boards
The labor agenda also emphasizes reforming part-time work. It is estimated that 2.6 million people in Spain are affected, with women comprising about 73 percent of those workers. Díaz argued that persistent part-time arrangements contribute to insecurity and gender discrimination, and that updating the framework is essential for fairness and equality in the workplace. The discussion centers on making part-time roles more secure and better aligned with actual hours worked, with safeguards to support workers who seek more consistent schedules.
One notable measure involves transposing the European directive on transparent working conditions, with several specifics highlighted by media reports. Among them is the obligation for companies to provide three days notice if a part-time employee is asked to take on additional hours, ensuring predictable planning for workers and preventing abrupt changes to schedules. This shift aims to foster clarity and fairness across employment relationships.
Tying these reforms together is the plan to modernize the Labor Code and present a new Labor Code for the 21st century. A central feature will be expanding the role of workers’ representatives in the management bodies of large companies, drawing on elements of the German model. The government stresses that constitutional coherence on this issue is presently lacking and that closer alignment with European practices will be pursued where appropriate, aiming to strengthen employee voices within corporate governance and provide clearer channels for dialogue and accountability.