Approval of draft bill on reducing maximum working hours to 37.5, modifying working hours register and strengthening right to digital disconnection

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SubscribeThe draft bill approved by the Council of Ministers on May 6, 2025, which proposes reducing the legal maximum working hours to 37.5 per week on an annual basis, coming down stronger regarding the working hours register and strengthening the right to digital disconnection, has generated uncertainty regarding its impact on business management and related costs.
It is important to understand at what point we are and examine how companies should adapt to the new scenario arising from the possible future approval of this bill.
Labor regulations not yet amended
First, we must specify that no changes have been made to the regulations yet. The text approved by the government is a draft bill that is starting its parliamentary procedures now. This means that both the upper and lower house of the Spanish parliament have yet to debate the bill, and the text could undergo changes. Therefore, until the final approval, current regulations continue to apply.
Relevant amendments if bill approved
Although the result of the parliamentary procedures is uncertain, this does not prevent companies from knowing in which direction the legal amendments intended by the government are moving. Specifically, the draft bill proposes amendments in three areas of the working hours:
- First, it proposes reducing the legal maximum working hours of 40 hours per week to 37.5 hours, without reducing the workforce’s salary proportionally. For those companies affected, the measure would mean reducing the availability of the workforce and simultaneously increasing the value of the hours worked. The proposal also requires companies to negotiate the organizational adaptations needed with the committees negotiating the collective bargaining agreements and, if there is no applicable collective bargaining agreement, with the most representative labor unions.
If the reform goes ahead, companies that exceed the new working hours limit will have to adjust their work schedule, their working hours and their internal organization. Part-time contracts with working hours equal to or greater than the new maximum working hours will have to be made into full-time contracts, and companies will have to proportionally increase the salary of part-time workers and of workers with reduced working hours due to legal guardianship that continue to work the same number of hours. - Second, this draft bill also seeks to increase control over the working hour register which all companies in Spain must have since 2019. One of the measures is to ensure that the working hour register is managed through a digital and interoperable timekeeping system, i.e., one that facilitates the sharing and exchanging of its information and data with other systems and platforms, particularly those used by the Labor Inspectorate. For this purpose, it is proposed to (i) unify all the regulations, including the regulation regarding part-time work, into a new article 34.bis of the Spanish Workers Statute; and (ii) suppress the current obligation to register overtime separately. It is also proposed to amend the Labor Infringements and Sanctions Act to increase sanctions for company breaches in this area, foreseeing the presumption of overtime being carried out when the working hours register is not in line with the new regulation. There is also a referral to the regulatory development to establish the other requirements and contents that registers must guarantee, including ways to identify the working hours and their compensation in the case of an irregular distribution of the working day.
- Lastly, the legal amendment discussed proposes strengthening the right to disconnect digitally (already recognized in article 20 bis of Spanish Workers Statute since 2018), establishing the unwaivable nature of this right. It also specifies that the ways for exercising this right to disconnect digitally must be defined through collective bargaining and expressly states that rejection of or lack of attention to communications outside of working hours cannot generate negative consequences for workers.
Individual analysis and flexibility
Given the imminent legal amendments if the proposal is approved, the impact on each company will be different.
To enable companies to adapt to this new regulation, the labor legal system offers flexibility mechanisms that can help companies adapt in a less traumatic way. Therefore, it is necessary to analyze each particular case; review collective bargaining agreements, other agreements and internal organization systems; and assess the alternatives that best adapt to each situation.
Anticipation: the best strategy
Although the final wording of the act or its approval are not yet a reality, we recommend starting to work on these aspects. Anticipation will enable companies to identify possible areas for improvement and find solutions that facilitate compliance with the new regulation without reducing competitiveness or efficiency.
For more information, please contact our Knowledge and Innovation Area specialists.
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