If your company operates in Spain, you should be aware of the country’s stringent workplace rules, hefty fines, and a new reform proposal that would ramp up employer obligations even more. Updates to the Workers’ Statute (Estatuto de los Trabajadores) are currently being debated in the Parliament and, if finalized, will mandate digital tracking, shorten the workweek, and strengthen employees’ right to disconnect. If these changes take effect in December as targeted, they will surely affect how businesses manage their workforce. Here's why this matters for US and other multinational companies operating in Spain and how you can prepare.

Quick Guide to the Proposal Spain wants to phase out paper records in favor of digital systems that labor inspectors can access remotely. Fines would rise. A 7,500 penalty could soon jump to 10,000 per employee for violations. The current 40-hour workweek would be reduced to 37.5 hours and companies would need to adjust work shifts and payroll accordingly. Employees, including those working remotely or hybrid, already have the right to disconnect, but under the proposed reform, they would not be able to waive this right. Global employers will want to get their HR structures in place as Spanish labor laws may become a model for the rest of Europe.

Spain’s Current Rules

The existing requirements under the Workers’ Statute already set a high bar. Since 2019, employers have been required to record the exact start and end times of every...

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