The Spanish Government has initiated the process of reducing the maximum working week from 40 hours to 37.5 hours. The Council of Ministers approved the draft bill on Tuesday, setting the stage for an expedited legislative process.
While the proposal has been agreed upon with the UGT and CCOO trade unions, it was not endorsed by business organisations and must still return to the Council of Ministers before being sent to the Congress of Deputies. Securing sufficient parliamentary backing remains a challenge, with negotiations focused on both Junts and the opposition Partido Popular (PP).
The Minister of Labour, Yolanda Díaz, hailed the move as "a historic day," arguing that reducing the standard 40-hour workweek would modernise Spain’s labour market and prioritise quality of life over time spent at work. She emphasised that the reform aims to enable people to "live better, work less, and be more productive and efficient economically," describing the initiative as "a change of paradigm."
The proposed legislation guarantees that the reduction in working hours will not result in a loss of salary. According to estimates from the Ministry of Labour, approximately 12 million workers will benefit from the change.
The bill also includes measures to automatically convert part-time contracts of 37.5 hours or more into full-time contracts once the new law takes effect. For employees with shorter working hours, salaries must be adjusted accordingly to maintain proportional pay.
Tougher Penalties for Non-Compliance
To ensure compliance, the government plans to introduce stricter penalties for companies that fail to adhere to working hour regulations. Fines for violations will increase to €10,000 per employee, up from the current maximum of €7,500.
Additionally, a new digital and real-time tracking system will be implemented to monitor working hours, allowing the Labour Inspectorate to detect breaches more efficiently. The law will also reinforce the right to digital disconnection, further safeguarding employees' work-life balance.
Following Tuesday’s approval, the draft law will undergo scrutiny by the Council of State and the Economic and Social Council (CES) before being submitted again to the Council of Ministers, potentially by late February. If no significant amendments are made, the bill will then be sent to the Congress of Deputies for debate and approval.
Opposition from Business Groups
Spanish business organisations remain firmly opposed to the proposed reduction in working hours. CEOE President Antonio Garamendi warned that employers would push back against the bill when it reaches Parliament. The business community argues that working hours should be negotiated at the sectoral or company level rather than imposed universally.
While Garamendi reaffirmed support for social dialogue, he criticised the government for sidelining employer organisations in the negotiations. "We always support social dialogue, but not social monologue," he remarked.
Meanwhile, Lorenzo Amor, president of the self-employed association ATA, warned that the measure would have a disproportionately negative impact on small businesses and the self-employed. "If someone thinks companies will hire more staff to cover the reduced hours, they have never paid a payroll in their life," he argued.
Despite business opposition, the government remains determined to push the reform through Parliament, believing that broad public backing will pressure political parties to support the change. If approved, the new working week of 37.5 hours will mark a significant shift in Spain’s labour landscape, aligning with broader European trends towards shorter working hours.
