Spain: 2026, Looking Ahead

As Spain enters 2026, its labour and employment landscape is defined by a dual dynamic: ongoing legislative modernisation and accelerated compliance. Several reform initiatives launched in 2024–2025 are expected to progress, while EU transposition deadlines will drive structural changes in documentation, pay transparency and platform work regardless of domestic political tempo. Overall, 2026 is shaping up as both a monitoring year (for reforms still under negotiation) and a compliance year (for measures with defined implementation periods or inspection focus), with multinational employers facing increasing expectations in terms of reporting, governance, traceability, and alignment with EU standards.

1. Minimum Interprofessional Wage (SMI)

The Minimum Interprofessional Wage (SMI) is updated annually. For 2026, the government has proposed a 3.1% increase, raising the SMI to EUR 1,221 per month (14 instalments), with retroactive effect from 1 January 2026. The proposal aligns with the recommendation issued by the committee of experts consulted by the Ministry of Labour and Social Economy. It has also been agreed with the Ministry of Finance that the SMI will continue not to be subject to personal income tax.

The proposal is currently under discussion with the social partners (Trade Unions and Employer Representative Federations) and may still be adjusted, particularly regarding the rules on set-off and absorption. Pending approval of the updated SMI, the existing amount remains in force by extension.

For employers, the approval of the new SMI will require payroll updates and a review of set-off and absorption mechanics in both individual contracts and collective agreements. Multinational employers should also assess indirect effects on salary structures, variable compensation floors, and benefits indexed to statutory thresholds.

2. Reduction of working hours and digital disconnection

The proposal to reduce the statutory working week from 40 hours to an annual average of 37.5 hours generated significant political and social debate throughout 2024 and early 2025. The initiative was initially backed by the Ministry of Labour and the trade unions, and the government undertook to promote a legislative reform that would require Collective Bargaining Agreements to adapt to the new maximum working time. The proposal also included adjustments to part-time contracts and further development of the right to digital disconnection.

However, the political momentum stalled during 2025. Congress rejected twice the request to discuss the proposal and no legislative text has been published. As at the end of 2025, there is no parliamentary timetable and no indication that the statutory working week will be amended in the short term.

In this context, 2026 is expected to be a monitoring year rather than a compliance year.

From a practical standpoint, the only relevant dimension continues to be digital disconnection, which is currently governed by Article 88 of Organic Law 3/2018. Companies are already required to adopt and enforce a Digital Disconnection Protocol (including the duty to refrain from contacting employees outside working hours and to prevent indirect contact through other employees or group companies).

At present, however, no specific regulatory framework has been enacted to develop the content or format of such protocols, leaving considerable discretion to employers. Legislative clarification could still be introduced during 2026, particularly if the government revives the broader agenda on working time and employee wellbeing.

3. Severance pay reform

The debate on unfair dismissal compensation intensified during 2025 and is set to remain on the agenda in 2026. Spain continues to face scrutiny under the European Social Charter and from the European Committee of Social Rights, which have repeatedly encouraged Member States to ensure that severance compensation acts as both a deterrent and a restorative mechanism, taking into account the actual damage suffered by the dismissed employee and their individual circumstances.

On 17 September 2025, Spanish Congress approved a non-legislative proposal urging the government to explore a reform of severance pay for unfair dismissal in order to bring Spanish law into line with the European Social Charter and ILO Convention No. 158. On 20 October 2025, the Ministry of Labour and Social Economy opened negotiations with the main Trade Unions and Employer Representative Federations to assess potential adjustments to the current statutory model. Under current rules, compensation for unfair dismissal is legally fixed on a tariff basis: 33 days of salary per year of service (capped at 24 months), with a transitional regime allowing 45 days per year for service accrued before the 2012 labour reform.

Any reform would therefore require amendments to Article 56 of the Employees’ Statute and would raise questions regarding whether compensation should incorporate employability, reallocation difficulties and personal circumstances that are not currently taken into account. Although the outcome of the negotiations remains uncertain, the trend points towards a more protective and personalised approach, consistent with European standards and the case law that has shaped the debate in recent years.

For employers, the key development in 2026 will be monitoring the negotiation process and assessing potential impacts on termination policies, workforce cost planning, litigation strategies, and severance budgeting models.

4. Sustainable mobility to work plans

The Sustainable Mobility Law introduces a new regulatory framework requiring employers to implement Sustainable Mobility to Work Plans for workplace centres with more than 200 employees or more than 100 employees per shift whose usual workplace is located in those centres. Although the law also creates a separate regime for large activity hubs (Article 25), the primary impact for companies will stem from Article 26, which focuses on commuting-related mobility, environmental sustainability and road safety performance at workplace level.

The law entered into force on 5 December 2025 (triggering a compliance period of 24 months). Employers operating affected workplace centres will therefore be required to have their plans approved by 5 December 2027. Where applicable, the plans must first be negotiated with employee representatives or, in the absence of such representation, with an ad hoc negotiating committee that includes sector representative trade unions. Substantively, the plans must promote sustainable commuting through measures such as active mobility, public transport, shared or collaborative mobility solutions, low or zero emission vehicles, charging infrastructure for electric vehicles, and teleworking where such arrangements are feasible. They must also address road safety and accident prevention during commuting and include visitors, suppliers and any other individuals who need to access the workplace.

Once approved, employers must issue a monitoring report every two years (assessing the level of implementation achieved). Workplace centres with more than 1,000 employees located in metropolitan areas with a population above 500,000 inhabitants will be required to implement additional measures to reduce mobility during peak hours and promote low or zero emission commuting. Employers may also encourage the use of public transport through transport voucher schemes (which benefit from favourable tax treatment under the Spanish Personal Income Tax regime).

For multi-site or multinational employers, early mapping of affected workplace centres, a unified compliance and negotiation framework and a central mobility governance function may significantly reduce implementation costs (while avoiding negotiation bottlenecks and ensuring consistency with broader corporate ESG and sustainability strategies).

5. Digital working time records

A new Royal Decree on working time registration strengthens and standardises the requirements applicable to the Working Time Register introduced in 2019. The regulation does not create a new obligation; rather, it consolidates the practical criteria developed by the courts and the Labour Inspectorate (in particular following the interpretation of Directive 2003/88/EC by the Court of Justice in its judgment of 14 May 2019, case C-55/18) and clarifies what constitutes an effective, objective and reliable working time record. The government frames the measure as a necessary instrument to ensure compliance with maximum working hours, adequate rest periods and work-life balance objectives (with broader linkages to health, safety and wellbeing).

The Royal Decree requires companies to implement a digital working time registration system that is objective, reliable and accessible, and that includes a detailed minimum content: start and end of the working day, pauses that do not constitute effective working time, remote work and on-site arrangements, overtime, flexible working and conciliation measures, and other time slots that affect the duration of work. Modifications must leave a clear and non-alterable trace, and the system must allow immediate access for employees and their representatives and for the Labour Inspectorate (including remote access). Records must be retained for four years, and companies must adopt an internal protocol governing the organisation and documentation of the register, subject to prior information and consultation.

Although the text largely reflects existing jurisprudence and inspection practice, it raises the compliance standard for companies currently using low-traceability solutions (including Excel spreadsheets and handwritten registers). These systems may prove insufficient to meet the required levels of objectivity, traceability and auditability. A technical and procedural reassessment may therefore be necessary, particularly in relation to data protection, access rights, change tracking, file formats and multi-site consistency.

For employers, a smooth transition will typically involve conducting a gap analysis of the current system, aligning technical capabilities with the new standard, updating internal protocols, ensuring data minimisation and proportionality, training staff, and harmonising practices across workplace centres. In parallel, discussions are ongoing regarding a potential tightening of the sanctions for non-compliance with working time registration, including the possibility of shifting from a single fine per employer to fines calculated on a per-employee basis (an approach that, while not included in the initial draft, is expected to form part of the broader debate on enforcement during 2026).

Following entry into force, the Labour Inspectorate is expected to prioritise targeted enforcement campaigns on working time registration (with a particular focus on digital auditability, overtime classification, and remote work arrangements). Early standardisation may reduce enforcement risk and avoid litigation arising from overtime, flexible working or working time disputes.

6. Reform of the occupational risk prevention framework

The reform of Spain’s Occupational Risk Prevention Law remains under consideration. The objective of the update is to adapt the framework to new social and technological realities, reinforce preventive integration within companies and pay special attention to SMEs. The reform is expected to address emerging risks associated with digital technologies, exposure to chemical substances, high temperatures, adverse climatic phenomena, and psychosocial risks.

On 11 November 2025, marking the thirtieth anniversary of the Law on Occupational Risk Prevention, the Council of Ministers declared 2026 as the “Year of Safety and Health at Work,” underscoring the need to strengthen prevention culture and to address climate-related, demographic and psychosocial challenges. As such, it is expected to include specific measures to intensify the prevention of risks derived from the use of technologies, exposure to certain chemical substances, high temperatures, adverse climatic phenomena, and psychosocial risks.

At the time of writing, no draft legislative text has been published and any developments remain speculative. For employers, 2026 will likely be a monitoring year pending further guidance.

7. Status of trainees

The regulatory framework for non-work training placements progressed in late 2025, when on 4 November 2025, the Council of Ministers, at the proposal of the Ministry of Labour and Social Economy, approved the Statute on Individuals in Non-Work Practical Training (a.k.a. the Trainee Statute). The objective is to ensure that traineeships do not replace regular employment or operate as low-cost labour, and that training activities are aligned with formal educational or vocational pathways.

The Statute must still complete its parliamentary process during 2026. If approved, companies will be required to formalise placements through individual training plans, appoint tutors (maximum five trainees per tutor) and ensure that trainees do not exceed 20 percent of the headcount of the workplace centre. Trainees will be entitled to expense compensation, rest and access to workplace services. Documentation and reporting obligations will be strengthened and employee representatives will have information rights.

From an enforcement perspective, the Labour Inspectorate will have access to traineeship documentation and could be expected to launch targeted inspection campaigns once the Statute enters into force, although not at the extent nor intensity of other items such as the digital working time records matter. The text expressly seeks to prevent the replacement of employees through traineeship schemes and to avoid cost-reduction practices based on training placements.

8. EU Directives: expected transposition in 2026

Spain is expected to transpose several EU directives throughout 2026, potentially triggering reforms in employment documentation, pay transparency, and platform work. The most relevant instruments are:

 

• Directive (EU) 2019/1152 on Transparent and Predictable Working Conditions

 Spain has not yet transposed this directive, despite the original EU deadline of 1 August 2022. In February 2024, a draft bill was introduced in Parliament to amend the Employees’ Statute and other labour provisions to implement the directive. However, the existence of a bill does not imply enactment, and parliamentary processing remains ongoing. Further analysis in April 2025 confirmed that the draft only partially addressed predictability guarantees, focusing mainly on part-time arrangements. To date, no Spanish legislation has expressly and fully incorporated the directive.

Substantively, transposition is expected to require adjustments regarding essential information to be provided to employees, stricter onboarding documentation deadlines, limits to probation periods, rules for part-time and fixed-discontinuous employment, complementary hours and unpredictable work schedules, employment incompatibilities, and training rights. Enforcement mechanisms include presumption rules and protection against retaliation. Legislative developments are expected during 2026.

 

• Directive (EU) 2023/970 on Pay Transparency

Spain must transpose this directive by 7 June 2026.

The directive reinforces equal pay for employees and restricts pay confidentiality clauses. Reporting obligations are phased according to employer size:

• 250+ employees: annual reporting starting no later than 7 June 2027, based on the previous calendar year.
• 150-249 employees: reporting every three years, also starting no later than 7 June 2027.
• 100-149 employees: reporting every three years starting no later than 7 June 2031.

Additional measures are expected to include access rights to pay information, pay audits for larger employers, enhanced procedural rights and enforcement tools. Multinational employers should anticipate adjustments to compensation governance, HR data structures and reporting frameworks.

 

• Directive (EU) 2024/2831 on Digital Platform Work

Spain must transpose this directive by 2 December 2026.

This directive seeks to strengthen protections in digital platform-based work. It introduces a rebuttable presumption of employment and reverses the burden of proof regarding employment status (i.e., platforms would need to demonstrate that individuals are not employees). It also imposes obligations concerning algorithmic transparency and automated decision-making systems involved in task allocation, performance management or account deactivation.

The directive specifically targets cases of false self-employment (i.e., individuals formally engaged as self-employed but operating under conditions of subordination typical of employment).

Transposition may clarify the employment status of platform-based activities in Spain and create new compliance requirements in terms of HR data governance, algorithmic transparency and documentation.

While legislative drafts have not yet been released, all three directives must be implemented, suggesting an active legislative period ahead. Given their scope, multinational employers should expect adjustments in onboarding documentation, pay reporting, contract management and data governance throughout 2026.