Significant Labor Reforms Set to Transform Spain’s Workplaces in 2025

As the year 2025 unfolds, Spain is on the cusp of major labor reforms that promise to revolutionize the workplace environment for both locals and expats. These changes, driven by agreements between the Spanish government and trade unions, are designed to enhance work-life balance, improve working conditions, and adapt to modern labor standards.

Reduction of Working Hours

One of the most notable changes is the reduction of the standard working week from 40 hours to 37.5 hours per week on an annual average. This historic agreement, clinched by Labour Minister Yolanda Díaz with the main trade unions CCOO and UGT, marks the first significant overhaul of Spain’s workweek since the 1980s. By December 31, 2025, all sectors, including those with existing collective bargaining agreements, must comply with this new maximum working week[1][3][5].

This reduction is part of a broader effort to support work-life balance and employee well-being. Companies will need to reorganize shifts and schedules to maintain productivity while adhering to the new regulations. Part-time contracts with working days equal to or greater than the new maximum will be automatically converted into full-time contracts, and part-time workers with lower agreed working days will see a proportional increase in their remuneration[1][3][5].

Digital Disconnection and Time Recording

In addition to the reduced working hours, the new legislation reinforces the right to digital disconnection outside working hours. This means that employers will no longer be able to contact employees via calls, messages, or emails once the workday has ended. This measure aims to draw a clear line between work and personal time, enhancing employee well-being and reducing burnout[1][3][5].

Companies will also be required to implement digital, real-time records of employee working hours, replacing traditional paper logbooks. This change is intended to ensure objectivity, reliability, and accessibility in tracking working hours. Inspectors will have the ability to access these records easily, and non-compliant businesses will face significant fines for each affected worker[5].

Reform of Occupational Risk Prevention Law

The year 2025 will also see a reform of the Law on Occupational Risk Prevention. This reform is aimed at adapting regulations to modern times, with a special focus on small and medium-sized companies. The new measures are expected to intensify the prevention of risks associated with the use of technologies, exposure to chemical substances, high temperatures, climatic phenomena, and psychosocial risks. This will ensure a safer and healthier work environment for all employees[1].

Industry Law and Transparent Working Conditions

Spain is also set to transpose the EU Directive on transparent and predictable working conditions into national law. This directive seeks greater transparency in labor contracts, including the minimum content of contracts and the elimination of limitations for workers who wish to provide services in other companies. The directive will also reinforce information provided to part-time workers about possible extensions of working hours[1].

New Intern Statute

Another significant change is the introduction of a new Intern Statute. This reform will cap the number of interns at 20% of the workforce and ensure fair compensation for interns. The goal is to professionalize internships and provide more equitable conditions for young professionals entering the workforce[3].

Regularization of Undocumented Migrants

In a separate but related development, the Spanish government is implementing a plan to regularize the status of approximately 300,000 undocumented migrants annually over the next three years. This initiative, aimed at addressing labor shortages and demographic challenges, will also impact British expats living in Spain without proper legal status. Those who have built ties to the community and can provide proof of long-term residency may be eligible for residency under the expanded arraigo framework[2].

Implications for Expats and Businesses

For expats in Spain, these changes offer both opportunities and challenges. While the reduction in working hours and enhanced digital disconnection rights can improve work-life balance, businesses may face significant adjustments in their operations. Employers will need to adapt their practices and procedures to comply with the new regulations, which could include reorganizing shifts, implementing digital time tracking systems, and ensuring compliance with the new Intern Statute[1][3][5].

In conclusion, 2025 is poised to be a transformative year for labor relations in Spain. With a focus on improving working conditions, enhancing employee well-being, and adapting to modern labor standards, these reforms promise to create a more balanced and equitable work environment for all. As these changes unfold, it will be crucial for both expats and businesses to stay informed and adapt to the new landscape.