New requirements for terminating employment agreements due to permanent incapacity

2025-04-30T13:02:00
Spain
Act 2/2025 abolishes automatic employment agreement terminations due to permanent incapacity and requires companies to try to preserve employment
New requirements for terminating employment agreements due to permanent incapacity
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April 30, 2025

Recently, Act 2/2025, dated April 29, has been published, which modifies the regime for terminating employment contracts due to the permanent incapacity of the worker.

The law eliminates the possibility of automatic termination of the employment contract due to the mere declaration of total, absolute, or severe permanent incapacity. From now on, the company must first consider both the worker's interest in maintaining their employment relationship and, if applicable, the reasonable adaptation of the job to their residual capacities.

In this Legal Flash, we highlight the most relevant aspects of this modification, which will generate new conflicts in managing the continuity or termination of workers who are declared to be in a situation of permanent incapacity.

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April 30, 2025