Spain Employment Legislation Changes 2024
Businesses in Spain will need to be ready to implement these new regulations for their employees in 2024
In this article, we will delve into the 2024 Employment Legislation Changes for Employers in Spain. Let’s understand the key updates and amendments in labor laws that are expected to impact employers across various sectors. Join us as we explore what employers need to know to stay compliant and adapt to the evolving regulatory environment in Spain.
Parental Leave Extension
Spain now offers extended parental leave benefits. Besides the 16 weeks of paid maternity leave, both parents can take up to 8 weeks of unpaid parental leave, which can be used intermittently until the child is 8 years old.
Parents of disabled children are entitled to up to 26 weeks of leave.
The extended parental leave is expected to become a paid-leave from 2 August 2024; however, legislation regarding this provision has not been released.
Employers' Social Security Contribution
Effective January 1, 2024, the maximum contribution base is €4,720.50 per month, rising from € 4,495.50 per month in 2023.
Retirement Age Adjustment
Starting in 2024, the retirement age for full pension eligibility will be 66 years and 6 months for those with less than 38 years of contributions. Individuals with 38 or more years can retire at 65. This is part of a plan to gradually increase the retirement age to 67 by 2027.
Minimum Wage Increase
Starting February 2024, Spain’s Minimum Wage (SMI) will rise to €37.8 gross per day or €1,134 gross per month, spread over 14 payments. This represents a 5% increase, applicable to all workers regardless of age, gender, or industry.
The amount set is for full-time work, a maximum of 40 hours per week. There is no specific reference to the daily working day, although 8 hours is the most common when there is no specific regulation by collective agreement.
Transparent and Predictable Working Conditions
In alignment with EU directives, Spain’s new decree, effective February 2024, prohibits companies from unilaterally reducing part-time hours and mandates that fraudulent part-time contracts be converted into permanent contracts.
The regulation prohibits on-call work and zero-hour contracts, so that workers will not have to be permanently available to employers.
The rule requires the company to strictly record all the conditions of the employment relationship in writing, such as the duration of the contract, the type of working day and the distribution of hours, the records, the salary and the length of the probationary period.
Equality Plans
Companies with 50 or more employees are required to maintain an active Equality Plan, which outlines measures to ensure equal opportunities for men and women in the workplace. Non-compliance with this requirement may result in fines up to €225,018.
LGBT+ Equality Plans
As of March 2024, companies with 50 or more employees must implement plans promoting LGBT+ equality.
After the passing of the Trans Law, this implies the explicit incorporation of measures against discrimination against LGTB+ people to the company’s Equality Plans.
These plans must address and prevent harassment or violence against LGBT+ individuals, with violations subject to fines up to €150,000.
The specifics of these plans will be determined through collective bargaining agreements (CBAs) and worker representatives.
Labor Inspectorate Focus
In 2024, the Labor and Social Security Inspectorate (ITSS) will prioritize assessing companies’ gender equality policies, wage equity, and diversity and inclusion measures.
Supporting this initiative, a Royal Decree issued on December 5, 2023, and effective from March 2024, aims to improve ITSS operations by incorporating electronic media, sanctioning procedures in social jurisdictions, and Social Security contribution settlements.
Key measures include electronic processing of procedures and the creation of an ITSS Electronic Register of Representatives.
Teleworking Regulations for remote workers
Teleworking agreements are now to be formalized in writing before an employee starts working remotely, with non-compliance fines up to €7,500.
Timekeeping Requirements
Companies must maintain a time register for workers with correct entry and exit time recordings, with non-compliance fines up to €225,018.
Occupational Risk Prevention
Companies must have an Occupational Risk Prevention Plan for the mental and physical well-being of their employees. Non-compliance & negligence fines of up to €819,000 could be imposed.
Digital Disconnection Guarantee 2024
Companies must respect employees’ right to digital disconnection, with non-compliance fines up to €7,500. The Spanish Court of Appeals has declared that companies can unilaterally develop internal digital disconnection policies as long as the workers’ legal representatives have been consulted in the process.
Considerations to draft a digital disconnection policy:
- If there is an employees’ legal representation, the policy must be drawn up jointly by the company and this representation.
- It should set out the mechanisms for exercising the right to digital disconnection, specifying the periods during which the digital disconnection will apply, which will coincide with the duration of daily and weekly breaks, paid leaves and holidays.
- Training and awareness-raising actions should be defined to train employees in using digital media.
These updates mark significant shifts in Spanish employment legislation for 2024, impacting both employers and employees. Staying informed and compliant with these changes is essential for all businesses operating in Spain.
How Beyond Borders HR Can Help You
These 2024 employment legislation changes for Spain can be challenging for employers to process independently. Beyond Borders HR, a global HR consulting firm, stands ready to assist businesses in understanding and implementing these changes effectively. With our extensive expertise in global HR practices, we ensure that your organization stays compliant with the evolving regulatory landscape. Reach out to Beyond Borders HR for tailored solutions, expert guidance, and seamless integration of these legislative updates into your HR policies and practices. Our team is dedicated to empowering your business with the knowledge and support needed to thrive in this dynamic regulatory environment.
