Employment - Legislative and case law developments

1. Emergency labour measures for businesses in Ceuta

Royal Decree-Law 22/2026 introduces emergency support for businesses in Ceuta affected by the migration crisis. Until 31 December 2026, employers can apply for an ERTE (temporary lay-off scheme) on force majeure grounds, with a 100% exemption from social security contributions between September and December. The measures also include 75% rebates for certain self-employed workers and for permanent or replacement contracts, an extraordinary cessation-of-activity benefit of up to four months, and the option to defer contributions at a reduced 0.5% interest rate.

2. New transparency rules for employment contracts

Royal Decree 723/2026 partially transposes the EU Directive on transparent and predictable working conditions. It expands the information employers must give employees about the essential elements of their contract, replacing the regime in place since 1998. The new rules add specific requirements for the fishing industry and seafarers, and introduce an obligation to inform employees about the use of algorithmic systems in decisions affecting the employment relationship.

3. Cognitive accessibility rules extend to the workplace

Royal Decree 707/2026 sets basic cognitive accessibility standards across various areas, including employment. Employers must adapt their communications and information to be accessible to people with cognitive difficulties.

4. Accepting redundancy pay does not waive transfer-of-undertaking rights

The Court of Justice of the European Union has ruled that national legislation cannot treat receipt of redundancy compensation as irrevocable acceptance of dismissal. It also confirmed that a court of last instance’s failure to refer a question for a preliminary ruling, where required, may give rise to State liability.

5. Employers cannot unilaterally cut agreed remote-working time

The Supreme Court has confirmed that an employer cannot unilaterally reduce an individually agreed percentage of remote working, whether under article 41 of the Workers’ Statute or through a collective agreement. This is because remote working is specifically governed by Law 10/2021, which requires a new individual written agreement to change the arrangement.

6. Unilateral equality plan registration upheld where employee representatives caused the deadlock

The National Court dismissed a challenge by the Directorate-General for Labour and upheld Constantia Tobepal’s unilateral registration of its Equality Plan. The employee representatives had refused to sign the minutes establishing the negotiating committee unless the company first adopted certain regulations and granted additional time off. The court found this refusal created a deadlock in negotiations that the company was not responsible for.

7. Postal service bonus clause penalising sick leave declared void

The National Court has declared article 74 of the Postal Service collective agreement partially void. The clause imposed additional deductions from the production and attendance bonus linked to sick leave or non-work-related accidents, which the court found amounted to discrimination on grounds of illness, prohibited by Law 15/2022.

8. Spanish data protection authority warns against AI-driven recruitment screening

The Spanish Data Protection Agency (AEPD) has warned a company against deploying an AI system to screen job applications, citing failures to meet its obligations on data protection by design, transparency and human oversight under articles 22, 24 and 25 of the GDPR. The warning is a reminder that employers using AI in recruitment must be able to show meaningful human review of automated decisions.

9. Hospitality sector’s national collective agreement (ALEH VI) amended

The Directorate-General for Labour has registered the amendment to ALEH VI, which restructures collective bargaining and job classifications, adds new chapters, and extends the agreement’s validity to 31 December 2030.