Situation of the negotiations on the reduction of working hours and the government’s tendency, as well as the CEOE’s refusal.

Negotiations between the Government, unions, and the Spanish Confederation of Business Organizations (CEOE) have concluded. The business association does not want to reach an agreement with the unions and the Government, as it believes that working hour reductions should be addressed in individual collective bargaining agreements since there is not much diversity in activities. The association feels that the reduction in working hours could lead to significant productivity and survival challenges for companies.

The Government will agree with the unions on the following points:

1. Reduction of working hours to 37.5 hours per week starting January 2025.
2. New Unique Time Registration System: A DIGITALIZED WORK TIME REGISTRATION WITH ONLINE AND DIRECT ACCESS FOR THE LABOR INSPECTION DEPARTMENT for part-time workers, showing both overtime and additional hours. This system will be Reliable and Unalterable, ensuring compliance with the regulation, as it would otherwise be ineffective. ARTICLE 34.BIS OF THE WORKERS’ STATUTE.
3. PLAN SME 375: Aid for companies with fewer than 10 employees that hire new personnel or extend part-time contracts to longer hours, offering a Social Security contribution bonus.
4. Direct measures for companies with fewer than 5 employees to help them implement digital registration, limited to four specific sectors.

In conclusion, workers moving to the new standard weekly working hours of 37.5 hours will receive the same salary as before but for fewer hours. Part-time employees will also earn the same amount for fewer hours per week.

The annual working hours in the Hospitality sector are currently 1,776 hours and will be reduced to 1,712. In the Retail sector, the annual working hours are 1,789 and will also be reduced to 1,712.

We advise companies to mitigate this reduction by implementing irregular working time distribution, as up to 10 percent of the working hours can be scheduled irregularly. This option is legislated in the Workers’ Statute and many collective bargaining agreements. Extending part-time work hours is also recommended as a better alternative to hiring new staff.