On February 4, the Spanish Council of Ministers approved a draft law to reduce the standard workweek from 40 hours to 37.5 hours, maintaining current salaries for employees.

This regulation also includes provisions for time tracking and the right to digital disconnection, reflecting a broader shift in labor policy aimed at enhancing work-life balance.

The proposed change has sparked significant controversy among business owners, with many expressing strong opposition to the agreement reached between the government and labor unions.

A report by the Confederation of Small and Medium Enterprises (Cepyme) indicates that nearly 50% of businesses may take drastic measures in response to the implementation of the new workweek.

The LaPymeHabla 2024 barometer reported that approximately 51% of companies foresee implementing measures upon the introduction of the shortened workweek.

Such measures could include project abandonment or workforce reduction, significantly affecting employment levels.

Furthermore, 90% of surveyed businesses acknowledged a negative impact from the reduced work hours, with 25% indicating that operational adjustments would be necessary for sustainability.

Over 10% of businesses believe they may not survive the change, highlighting potential job losses across Spain.

The draft law is currently set to undergo parliamentary procedures, and its enactment will depend on parliamentary approval, which may include amendments during the legislative process.

Once ratified, the measure will be officially published in the Official State Gazette.

Collective agreements containing annual work hours exceeding the new weekly average of 37.5 must be adapted by negotiation committees to comply with the new law, with a deadline for adaptations set for December 31, 2025. As a result, the full implementation of the new work schedule is not expected until January 1, 2026.

Criticism of the reform has also emerged from the Economic and Social Council (CES), which, while supportive of the law's social importance, criticized the rapid pace of legislative processes and the limited time given for feedback from consultative bodies and business organizations.

The CES described the economic rationale behind the measure as "incomplete" and "insufficiently substantiated."

For part-time workers whose contracts were initially established for hours equal to or greater than the new maximum of 37.5 hours, their contracts will be converted to full-time automatically.

Conversely, if part-time employment is below the new threshold, workers may continue their existing hours with a proportional salary increase.

In terms of compliance, businesses failing to adhere to the new labor regulations could face fines from labor inspections, potentially reaching up to €7,500.

New penalties will also be implemented for companies violating timekeeping requirements, with fines escalating to €10,000 per worker, a substantial increase from the previous maximum of €7,500 for general violations, marked as a serious infringement by employer standards.