Spain is moving towards reducing its legal working week from 40 to 37.5 hours, with no salary reduction, following approval from the Council of Ministers on February 4, 2025.
This landmark proposal, championed by the Labour Minister Yolanda Díaz, represents a significant shift in Spain’s labor policies, aiming to enhance work-life balance, boost productivity, and modernize the workforce. However, challenges remain as the measure still requires parliamentary approval and faces resistance from employer associations.
Spain’s Work Week: Key Highlights of the Proposed Change in Spain
Reduction in Working Hours: The legal workweek will be reduced from 40 to 37.5 hours, with full salary retention.
Widespread Impact: Over 12 million private sector workers stand to benefit from the new law.
Productivity and Absenteeism: Proponents argue the change will lead to increased efficiency and reduced absenteeism.
Right to Disconnect: The legislation also introduces provisions to modify time control and reinforce employees’ right to disconnect from work.
Implementation Timeline & Parliamentary Approval: The target date for adoption is expected to be the end of 2025, but the law still requires parliamentary approval. The government will need to negotiate for support to pass the reform.
Government's Perspective
Spanish Labour Minister Díaz has framed the workweek reduction as a transformational initiative that goes beyond mere labor policy. She emphasizes that it aligns with broader economic modernization efforts, fostering both a healthier work-life balance and improved economic efficiency.
Pilar Alegría, the government spokesperson, called the move a “historic commitment” to workers, underscoring the administration's dedication to labor reforms.
Challenges and Considerations of the Work Week Reduction
While the proposal is backed by major labor unions such as the Comisiones Obreras (CCOO) and the Unión General de Trabajadores (UGT), employer associations and economic analysts have voiced concerns. Spain's Central Bank has previously warned that the reduction in working hours could lower productivity and negatively impact certain economic activities. Meanwhile, Economy Minister Carlos Cuerpo Caballero has cautioned that higher labor costs may contribute to inflation and potentially hinder job creation
Additionally, with Spain’s government operating as a minority coalition, securing enough parliamentary votes to pass the legislation remains a key hurdle. Negotiations with smaller parties will be crucial in determining the bill’s final outcome.
Implications for Spanish Employers
If passed, companies will need to adjust operational strategies to accommodate the shorter workweek while maintaining productivity levels. Employers may explore flexible work arrangements, enhanced automation, or optimized workflows to counterbalance the impact of reduced working hours.
Next Steps
The draft bill has now moved to the parliamentary stage, where it will undergo further deliberation and potential amendments. With the Spanish government upgrading its economic forecasts for growth and job creation, the coming months will be crucial in determining whether this labor reform will become law.
As discussions continue, employers will need to stay informed about the evolving legislative process and prepare for potential shifts in Spain’s labor landscape.