Spanish new labor law reform

Following 9 months of negotiations between the government, the unions and the business sector, the Spanish Cabinet approved on 28 December 2021 a labour law reform via Royal Decree that was agreed upon by the government, unions and the business sector on December 23. 

Our Spanish member firm álvarez lentner has examined closely the new law for you and unveils the details of the reform here (link to pdf

The reform aims primarily at reducing precarity and the high temporary nature of work contracts that are signed in the labour market in Spain in order to establish permanent job contracts as norm and boost job security.

As the Labour Minister Yolanda Diaz told in a news conference after the cabinet passed the reform: “This is the first agreement in more than four decades that reverses the trend of workers losing rights, bargaining power and wages.” 

The long-promised labor market reform is however receiving lots of criticism as some feel it is not ambitious enough to solve the structural problems of the Spanish labor market. It must now be approved by parliament, with a vote expected before the end of January. In the meantime, some provisions of the new law are already applicable.

For any questions related to this labour law reform or any other employment related question, please contact our Spanish expert Almudena Alvarez and visit their website: