As we approach the summer break of 2024, it is essential to not only disconnect but also to be aware of the labour reforms impacting the field of labour relations. Understanding the current status of these regulations is crucial for planned adaptation and compliance with the new legal requirements recently implemented by the Government.
In this guide, we outline the main developments that every human resources and labour relations department should be aware of in the coming months. These include the reduction of the working day to 37.5 hours, the elimination of automatic dismissal for permanent incapacity, the mandatory nature of equality plans and LGTBI harassment protocols, 6 months’ notice for workplace closures, the transposition of European directives on transparency, and changes in the prevention of occupational hazards.
- Six months’ notice for workplace closures and mass lay-offs
Since the publication of Royal Decree 608/2023, companies are required to give 6 months’ notice for any closure of workplaces involving the dismissal of 50 or more workers. This notification must be made to the competent labour authority and the Ministry of Labour and Social Economy. However, the Supreme Court has recently annulled the obligation to also inform the most representative trade unions. It is possible that this obligation will be regulated again in the future without discrimination between trade unions.
- Reduction of the working day to 37.5 hours
One of the most anticipated changes is the reduction of the maximum working week to 37.5 hours, effective from 1 January 2025. This change is being negotiated at a tripartite social dialogue table, though a final agreement has not yet been reached. The intention is to not only change the length of working hours but also the methods of recording working hours and the infringement regime (LISOS), with fines of up to 10,000 euros per affected worker.
- Elimination of automatic dismissal for permanent incapacity
The Workers’ Statute will no longer consider permanent incapacity as grounds for automatic dismissal. This amendment follows a ruling by the European Union’s High Court of Justice, which requires companies to seek reasonable accommodation to keep the employee in their job, whenever possible. Refusal to make such adjustments without justification could be considered discriminatory and void. The reform introduces the adaptation of Article 49 of the Workers’ Statute, eliminating permanent incapacity as a cause for automatic termination of the employment contract. The final text will be published in the BOE in the coming days.
- LGTBI plans and harassment protocols
From March 2024, companies with more than 50 employees must implement LGTBI equality plans. Regulatory development detailing the content and scope of these measures is still pending, with five cases for the negotiation of these measures established, depending on the type of applicable collective agreement and the existence of legal representation of workers (RLT). The measures include non-discrimination, access to employment, professional classification and promotion, training, and action protocols.
- European directive on transparent and predictable working conditions
The transposition of Directive (EU) 2019/1152 into Spanish law seeks to ensure that working conditions are clear and predictable for all workers. This new regulation includes the right of employees to know their working hours in advance and the criteria under which these can change. Companies will need to adapt their contractual models and internal policies to comply with these transparency requirements. Additionally, it states that working conditions must be communicated in an understandable and accessible manner, ensuring that employees are fully informed about their rights and duties. This approach strengthens protection and predictability, reducing uncertainty and improving the employment relationship. The right to predictable working conditions will be included in Article 4 of the Workers’ Statute.
- European directive on pay transparency
Directive 2023/970 of the European Parliament aims to reinforce equal pay for men and women through pay transparency. Although Spain already has legislation in this area, this Directive introduces new features such as the right of job applicants to know their starting pay, the obligation for companies to make pay criteria public, and the possibility for employees to request individualized information on their pay.
- Amendments to the law on the prevention of occupational risks in the workplace
The government is working on amending the Law on Prevention of Occupational Risks to include the gender perspective, generational diversity, and exposure to psychosocial risks. Proposals include the designation of prevention service interlocutors and a special focus on workers’ mental health. These changes will significantly impact how companies approach risk prevention and ensure greater protection for all workers.
- Possible reform of the severance pay system
In March 2024, the European Committee of Social Rights ruled against the Spanish regulation of compensation for unfair dismissal, arguing that it is neither “dissuasive nor restorative” and violates Article 24 of the European Social Charter. On 29 July 2024, the ECSR published the full opinion. UGT, the trade union that initiated the complaint, considers it unacceptable that the average compensation is only 9,000 euros and calls on the government to reform the legislation. The Minister of Labour has indicated that this reform will be addressed at the social dialogue table, so significant changes are expected in this area.