Employment - Legislative and case law developments

1. Government approves training contracts regulation

The Government has approved Royal Decree 1065/2025 of 26 November, which develops the regulatory framework for training contracts set out in article 11 of the Workers’ Statute. It clarifies the conditions for combining formal training with paid work to ensure unemployment and FOGASA (wage guarantee fund) contributions are made, training needs are appropriately addressed, and workers’ rights are safeguarded.

2. Independent Whistleblower Protection Authority: web portal

A resolution has been published formally establishing the web portal of the Independent Whistleblower Protection Authority (AIPI). This portal, which is linked to the Spanish Government’s General Access Point, will provide the appropriate communication channel between the public (citizens and companies) and the AIPI.

3. OECD Model Tax Convention update: permanent establishment in remote working cases

The OECD has updated its commentary on the Model Tax Convention on Income and on Capital, introducing amendments on international mobility. The update revises Article 5 to establish clear criteria for assessing when remote work arrangements may constitute a permanent establishment for tax purposes: prolonged remote working is not in itself sufficient; instead an employee must perform at least 50% of their working time from their home or another non-company location, the tasks must be a core part of the company’s business, and there must be a commercial reason for working remotely.

4. Access to workers’ personal data: limits on company powers

The European Court of Human Rights has ruled in Guyvan v. Ukraine that Ukraine violated Article 8 of the European Convention on Human Rights. The violation arose as a result of the Ukranian authorities’ failure to protect the applicant’s rights before the domestic courts in a case involving the employer’s processing of the employee’s data from his work mobile phone in the context of an internal investigation. The ECHR found that the domestic courts did not adequately assess whether the criteria relating to the monitoring of the applicant’s workplace communications were met.

5. Validity of EU Directive on adequate minimum wages

The Court of Justice of the European Union has issued its judgment in Denmark v. Parliament and Council, confirming the validity of the bulk of Directive (EU) 2022/2041 on adequate minimum wages. However, it annuls two key provisions: the mandatory criteria for setting and updating statutory minimum wages (Article 5.2) and the prohibition on lowering minimum wages when they are subject to automatic indexation (part of Article 5.3).

6. CJEU rules on failure to notify a collective redundancy to the competent authority

The Court of Justice of the European Union, in Case C-134/24 – quoting cases differently, has held that an individual dismissal carried out as part of a collective redundancy may only take effect 30 days after the competent authority is notified. However, if the employer fails to notify the competent authority, the termination will take effect 30 days after the notification is eventually made.

7. Infringement of the right to strike

The Supreme Court has upheld the judgment of the High Court of Justice of Asturias, which declared that a company had infringed the right to strike by unilaterally imposing certain maintenance and safety services without first negotiating them with the strike committee. The company was ordered to pay EUR 120,000 compensation for non-pecuniary damage.

8. Supreme Court: information and consultation procedures in transnational matters

The Supreme Court has issued a landmark judgment addressing, for the first time, the scope of the information and consultation rights of a European works council. The court partially upheld the IAG European Works Council’s appeal, recognising its right not only to receive information but also to be consulted on the transnational restructuring measures adopted by British Airways and Aer Lingus in the context of the COVID-19 crisis.

9. Collective redundancy excluding employees over 55 years of age and protecting vulnerable groups not discriminatory

The National Court has handed down a judgment dismissing the claim brought by the FIST trade union against Concentrix Spain and the trade unions UGT, CCOO, FETICO and USO. The court held that the termination decision adopted following a consultation period, concluding with an agreement signed by 84.22% of employee representatives, was lawful.