August is usually a period of rest for most professionals. However, as labour lawyers, we know that summer never means a complete break: there are always legal reforms, regulatory proposals or amendments that directly affect companies and workers.

With the end of summer in sight and September just around the corner, it is time to review the main labour developments that will shape the agenda for the coming months.

Reform on the extension of work-life balance leave

The most notable development this summer has been published in the Official State Gazette (BOE) and affects maternity, paternity and family work-life balance leave.

In summary, the key points of this reform are:

• The duration is extended by three additional weeks, reaching a total of 17 weeks.
• Two extra weeks are added for childcare, with the possibility of taking this leave until the child reaches the age of eight, providing greater flexibility for families.
• In the case of single-parent families, an additional four weeks of leave is recognised, financed entirely by the Social Security.
• The measure will apply to all children born on or after 2 August 2024, although the benefit can be claimed from 1 January 2026.

In short, this type of leave covers 100% of the applicant’s regulatory base, with a maximum period of 19 weeks. This is a significant step forward in terms of work-life balance, reinforcing shared responsibility for childcare.

Possible change in severance pay

Another highly relevant issue that has been discussed this month is the need to review certain tax benefits in the workplace, in particular the exemption from severance pay provided for in Article 7 of the Personal Income Tax Law.

Currently, severance pay is exempt up to a limit of €180,000.

A change of this magnitude would undoubtedly have a tremendously important implication on the possibility of being able to carry out a dismissal, as the ‘profitability’ of the dismissal and, above all, the additional costs for the company in terms of additional contributions in the event that workers are not capped would skyrocket, creating even greater difficulty, if possible, than we currently have in reconciling, leaving aside the fact that if the maximum exempt amount is reduced (currently €180,000), this would create further problems in negotiations, with the additional cost being passed on, as always, to the company’s ‘net profitability of the dismissal’.

Reduction of working hours: an imminent reform

The third major issue that continues to dominate the debate is the reduction of working hours. Although the reform has not yet been approved, everything points to the Ministry of Labour promoting, before the end of the year, a regulatory amendment that could even be approved by decree with regulatory status.

This is a measure that has been on the public agenda for some time and has already generated numerous analyses in specialised journals and debates on social media. The key will be to determine whether this will be a general reduction or whether it will be applied progressively depending on sectors or collective agreements.

Labour law practice never stops

As a good colleague of mine often says, lawyers can take a summer break, but they can never go on holiday. Regulatory realities and legislative changes force us to remain alert at all times, even in August.

Anticipate and seek expert advice

The labour market is undergoing a complete transformation. For companies, anticipating changes and adapting quickly will be key to avoiding conflicts and unnecessary costs. For workers, knowing their labour rights is essential to protecting their position in a constantly evolving environment.

At Ayuela Jiménez Abogados, our team of specialists in employment law supports companies and workers in managing these challenges. We offer strategic, preventive and effective advice, helping them to make informed decisions and minimise risks.