Government Moves Forward with Plan to Reduce Workweek to 37.5 Hours
After weeks of negotiations, the Spanish government has reached an agreement to reduce the standard workweek from 40 to 37.5 hours. The proposal, which has been a key priority for labor unions and the Ministry of Labor, is set to be approved by the Council of Ministers next week through an urgent legislative process. This move aims to fulfill a promise made in the government’s coalition agreement, though it still faces significant challenges in parliament.
What’s in the Agreement?
The agreement, finalized during a meeting of the Delegated Commission for Economic Affairs (CDGAE), includes several key measures:
- Reduction of Working Hours: The standard workweek will be reduced from 40 to 37.5 hours, with the goal of implementing the change by 2025.
- Support for Part-Time Workers: Employees working part-time will have the option to either maintain their current hours with a proportional increase in pay or reduce their hours while keeping their salary unchanged.
- Stricter Work Hour Tracking: Employers will be required to use digital systems to record working hours, replacing the current allowance for manual records.
- Harsher Penalties for Violations: Companies that exceed legal limits on working hours, overtime, or night shifts could face fines of up to €10,000 per affected worker, a significant increase from the current system, which imposes penalties per company rather than per individual.
- Right to Digital Disconnection: Employees will have the legal right to disconnect from work-related communications outside their designated working hours.
Why the Urgency?
The government initially promised to reduce the workweek to 38.5 hours by 2024 but failed to meet that deadline. To avoid missing the 2025 target, the Ministry of Labor pushed for the proposal to be fast-tracked through the Council of Ministers. While the Ministry of Economy initially favored a standard legislative process, it ultimately agreed to the accelerated timeline.
Challenges Ahead
Despite the government’s internal agreement, the proposal faces significant hurdles in parliament. The ruling coalition holds a narrow majority, and opposition parties have already signaled potential resistance. Additionally, small and medium-sized enterprises (SMEs) have expressed concerns about the financial and operational impact of the reduced workweek.
To address these concerns, the government has indicated that support measures for SMEs, such as flexibility in implementation and financial assistance, could be introduced during parliamentary discussions. These measures were initially part of the draft agreement but were removed due to opposition from employer groups like CEOE and Cepyme.
Impact on Workers and Businesses
The reduced workweek is seen as a major win for labor unions, which have long advocated for shorter working hours to improve work-life balance and address issues of worker precarity, particularly in low-wage sectors dominated by women. However, businesses, especially SMEs, worry about the potential strain on their operations.
The government has acknowledged these concerns and emphasized the need for flexibility and support to ensure the reform is sustainable. For example, measures could include phased implementation or financial incentives to help smaller businesses adapt.
Broader Implications
The proposal is part of a broader effort by the government to modernize labor laws and improve working conditions in Spain. By reducing working hours, the government aims to align Spain with other European countries that have already adopted shorter workweeks. The reform also seeks to address long-standing issues such as overwork, burnout, and the lack of work-life balance.
What’s Next?
The proposal will be presented to the Council of Ministers next Tuesday. If approved, it will move to parliament, where it will face intense debate and potential modifications. The government will need to secure support from other political parties to pass the measure, given its narrow majority.
Labor unions have expressed cautious optimism, emphasizing their willingness to accept amendments during the parliamentary process. However, they remain committed to ensuring the core principles of the agreement are upheld.
A Transformative Step for Spain
The reduction of the workweek represents one of the most ambitious labor reforms in Spain in recent years. If successful, it could significantly improve the quality of life for millions of workers while setting a new standard for work-life balance in the country. However, its success will depend on the government’s ability to address the concerns of businesses and secure broad political support.
As the proposal moves forward, all eyes will be on Parliament to see whether Spain can take this transformative step toward a fairer and more sustainable working environment.
Main image: Pexels/Andrea Piacquadio
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