The Spanish Council of Ministers has approved a draft law aimed at reducing the maximum workweek to 37.5 hours without any salary reductions.

Despite this legislative progress, the proposal currently lacks sufficient support in Congress to pass.

Labor Minister Yolanda Díaz has reached out to the political party Junts, which holds a critical seven votes necessary for the proposal’s approval, stating, 'There is room for negotiation.'

Díaz articulated her intent to gain support from Junts amid opposition from the Popular Party (PP) and Vox.

She referenced previous statements from Junts indicating the need for adaptations specific to Catalonia, reaffirming her openness to discussions.

Furthermore, she framed the introduction of a comprehensive amendment to the government's approved norm as a typical part of the negotiation process.

At a press conference following the Council of Ministers meeting, Díaz emphasized the government's commitment to the legislation, which has faced substantial criticism from business sectors due to concerns about its potential impact on employment and struggling businesses.

In defense of the legislation, she noted that company margins have significantly increased since 2019, citing a 35% improvement in the hospitality industry and over 20% in commerce.

Díaz reported positive employment statistics released that day, attributing these trends to the government's reforms.

She indicated that the core objective of the proposed legislation extends beyond reducing work hours; crucial elements also include a restructuring of mandatory timekeeping.

A digital and interoperable time tracking system is to be implemented within six months following the law's enactment, allowing the Labor Inspectorate to monitor employees’ hours in real-time.

The new regulations mandate that the person responsible for entering time records is identified clearly to ensure data authenticity.

The format of these records will be 'processable, readable, and compatible,' enabling immediate access by workers, their legal representatives, and labor inspectors in a manner that is remote and interoperable.

Companies will be required to retain these time records for four years, during which they must be accessible to workers, their representatives, and the Labor and Social Security Inspectorate.

Under the provisions of the proposed law, companies that fail to comply with the new timekeeping regulations or the reduction of the maximum workweek will face fines up to €10,000 per employee, representing a tightening of existing penalties.

This change includes fines applied on a per-employee basis rather than globally, alongside an increase in penalty amounts for serious infractions, escalating from a maximum of €7,500 to €10,000 for each violation.

Violations regarding work hours, night work, overtime, breaks, holidays, and other related employment conditions will incur fines ranging from €1,000 to €10,000, depending on the severity of the violation.