A reform pushed forward by the Ministry of Labor targets domestic workers with new limits on arbitrary dismissal by employers. The second vice-president, Yolanda Díaz, stated she believes the reform can be finalized quickly and will proceed through the Congress of Deputies. The package includes unemployment benefits and protective compensation for termination, among other provisions. Díaz also signaled the immediate deployment of an algorithm designed to monitor overtime at companies, especially unpaid hours.
Diaz emphasized that the reform will address the recognition of dismissal and the seriousness of withdrawal decisions. Domestic workers currently operate under a special regime that allows an employer to use the withdrawal option. This can justify dismissal after more than one year, with a stated reason and certain notice requirements, based on seniority. The regime allows a payment of 12 days per year worked, up to a maximum of six months. This system creates a process that may not require economic justification for the dismissal, which is inconsistent with how other workers are protected under the law. In those cases, unfair dismissal costs can run up to 24 months and these are often more costly under the coverage of justified reasons.
The reform aims to end the ambiguity surrounding withdrawal by introducing clearer standards or replacing it with protections that reflect the risks of arbitrary termination. Díaz did not spell out every option being considered, but proposals on the table include strengthening or limiting severance payments and revising notice periods. The government’s direction in this area may depend on rulings from the courts. European justice recently ruled that Spain discriminated against domestic workers by denying unemployment benefits, a judgment that is already influencing national proceedings.
Spanish courts are already applying that case-law. For instance, as reported by El Periódico de Catalunya, the TSJC has recognized subsidies for domestic workers aged 52 or older and has expanded compensation guarantees should an employer declare bankruptcy. The Ministry of Labor has not yet fully compiled these judicial precedents within the legal framework or resolved related questions as previously promised.
Algorithm against overtime
The second vice-president also indicated that forthcoming public results from the expert commission will address algorithms used in Spain’s labor relations. This topic is tied to a reform commitment under which home delivery workers should be paid properly and employees could request information about any algorithms used by their employer to organize work and the parameters involved. The timing of these disclosures may align with the rollout of the monitoring algorithm to empower the Labor Inspectorate to pursue false overtime more effectively.
According to El Periódico de Catalunya, compliance with time-control rules remains a concern. After several years with the current regulations, many audits still reveal shortcomings. Recent data indicate that about 27 million overtime hours are worked monthly, with roughly 40 percent unpaid, highlighting the need for better enforcement and clearer employer responsibilities. The discussion around the so‑called equestrian law and Diaz’s stance on delivery platforms underscores the issue. Glovo and similar platforms, which rely on a large contingent of self-employed delivery workers, face the prospect of facing the new rules and Labor Inspection enforcement if they fail to comply.