Proposed Reduction of Working Time by the Spanish Government
One of the latest initiatives of the Spanish government is the reduction of working hours. This plan envisages a first phase in which the working week would be reduced to 38.5 hours, with a final target of 37.5 hours per week. The proposal has the backing of the UGT and CC.OO. trade unions, while CEOE-CEPYME, as employers’ representatives, oppose the measure.
Evolution of Weekly Working Hours in Spain
Historically, the number of weekly hours worked has decreased. In Spain, it has gone from an average of 42 hours per week in 1987 to 38 hours in 2022. The limit established by the OECD (Organisation for Economic Co-operation and Development) is 40 hours per week. According to current Spanish law, the working hours are those agreed in collective agreements or employment contracts (Article 14.1 of the Ministry of Labour and Social Economy). Collective bargaining prevails in the establishment of working hours.
Impact of the Reduction of Working Time on Companies and Workers
The proposed reduction in working time would maintain current wages. This means that workers would receive the same amount of money while working 30 minutes less per day. This decrease in productivity would force employers to assume the wage costs that were previously covered by worker productivity. The options for employers would include hiring additional staff or closing the business earlier, which would entail extra costs and could affect profitability.
Key Aspects of the Draft Law on Working Time Reduction
The Spanish government has drafted a bill on the reduction of working hours, which includes the following relevant aspects:
Toughening of Penalties for Non-Compliance.
- Penalties:
- Low level: between 1,000 and 2,000 euros.
- Medium level: between 2,001 and 5,000 euros.
- Maximum level: between 5,001 and 10,000 euros.
- Infringement Commission: The creation of a commission is envisaged for cases of:
- Absence of registration.
- Omission of data.
- Inclusion of false or inaccurate data.
Changes to the Working Time Register
- Digital Register: Implementation of a digital, accessible and automatic register.
- Access: Available to workers, trade union representatives and the Labour and Social Security Inspectorate.
- Effective Time: Effective time will be considered to be the time between the start and end of the register. Additional time will be considered as overtime or complementary hours.
Part-Time Contracts and Wage Increases
- Part-time contracts: Contracts exceeding 38.5 hours per week in 2024 and 37.5 hours in 2025 will be considered full-time contracts.
- Workers’ Rights: Workers with reduced working hours will maintain their previous hours and will be entitled to a proportional increase in their salary. In addition, they will be able to maintain the percentage of part-time work previously applied, subject to the employer’s assessment.
Creation of a Social Dialogue Table
- Social Dialogue Table: The government will create a table to evaluate results and propose changes.
Future Perspectives
Although the entry into force of this new law has not yet been confirmed, the open negotiations with the CEOE provide hope that an agreement will be reached between the social partners and the employers’ representation, thus marking the future of the working day in Spain.
