Spain Reduces Legal Workweek to 37.5 Hours

The Spanish government has approved a reduction of the legal working week from 40 to 37.5 hours while maintaining employee salaries, a move spearheaded by Labour Minister Yolanda Diaz of the left-wing Sumar party. This initiative, seen as a significant social policy change, aims to enhance work-life balance and productivity but faces challenges in parliament due to a lack of majority support and opposition from the centre-right Catalan separatist party Junts. Employers have expressed concerns that the shorter workweek could increase operational costs, particularly affecting small and medium-sized businesses. The proposal also includes provisions for the right to disconnect, preventing employers from contacting employees outside working hours. While the cabinet supports the change, it still requires parliamentary approval, where further negotiations may be necessary to address employers' concerns. If enacted, Spain will see one of its most substantial shifts in labor laws in decades, aiming for implementation by the end of 2025.