Significant Changes in Labor Laws and Housing Regulations in Spain: What Expats Need to Know

Spain has recently introduced several key changes in its labor laws and housing regulations, which are set to impact both employers and individuals, including expats living in the country.

Labor Law Reforms

Temporary Contracts and Penalties

One of the major labor law reforms in Spain involves significant changes to temporary contracts. As of December 30, 2021, the royal decree-law amended several provisions in the Worker’s Statute to modernize the employment market and reduce temporary employment rates. The temporary contract for a specific project or service has been abolished, and contracts for backlogs and relief work now have limited durations. Penalties for fraudulent temporary hiring have been stiffened, with substantial fines imposed for each employee involved[2].

Training Contracts and Permanent Contracts

Training contracts have been redefined to make paid work compatible with training processes, with a maximum duration of two years. Contracts for obtaining practical experience are limited to one year. Additionally, permanent contracts for intermittent work have been strengthened, allowing them to be used for seasonal or non-seasonal intermittent work[2].

Climate Change and Labor Measures

In response to the increasing impact of climate change, Royal Decree-Law 8/2024, published on November 29, 2024, introduces new labor measures. This law includes provisions for paid leave during adverse weather events, such as flash flooding, and the option for temporary redundancy plans on the grounds of force majeure. Companies must also negotiate action plans that include health and safety measures for such events[4].

Housing Law Reforms

Speedy Eviction Procedures

A new law aimed at tackling the issue of "okupas" (individuals who illegally occupy properties) has been introduced. This reform focuses on speeding up court procedures for cases of illegal property occupation. Court proceedings are now limited to a maximum of 15 days, and evictions must be carried out immediately after a verdict is issued. This change is designed to protect the rights of homeowners and apartment owners more effectively[1].

Criticism and Limitations

Critics argue that this new legislation could adversely affect vulnerable individuals, such as families with children, who may occupy vacant properties due to a lack of alternatives. The law does not cover situations where tenants have a lease agreement but are in arrears with rent or remain in the property after the contract expires[1].

Regional Housing Regulations

Different regions in Spain have their own set of housing regulations. For example, in Andalucia, properties need a First Occupation Licence, and booking sites are no longer allowed to list unregistered properties. In the Balearic Islands, homes in tourist zones must have licenses, and owners are limited to three properties. In Catalonia, owners must log guest details with the police and pay for quality grading[3].

Implications for Expats

These changes in labor and housing laws are crucial for expats to understand, especially those who are employed or own property in Spain. The labor reforms aim to provide more stability and protection for workers, while the housing reforms are designed to address issues of illegal occupation and ensure that property owners' rights are respected.

For expats who are renting, it is important to note that long-term contracts typically last for at least a year and can automatically renew up to a minimum of five years. Rent increases are also capped at 3% per year in areas designated as stressed[3].

In conclusion, these recent legal changes reflect Spain's ongoing efforts to balance economic and social needs. Expats should stay informed about these developments to navigate the legal landscape effectively and ensure compliance with the new regulations.