News

Ongoing Discussions on the Reduction of Working Hours

Labor News

Despite multiple meetings between the Ministry of Labor, unions, and business representatives, progress toward reaching a consensus on the implementation of reduced working hours has been limited.

Since the start of negotiations, various proposals have been put forward but have yet to bear fruit. These include increasing overtime hours to compensate for the reduction in the workweek or offering incentives for new permanent hires resulting from the reduced working hours. Meanwhile, business representatives have expressed concerns about the difficulties in implementing such reductions in certain sectors, particularly retail and hospitality.

The draft bill sent to social partners included a phased implementation of the reduction, moving from the current 40-hour workweek to 38.5 hours in 2024 and then to 37.5 hours starting January 1, 2025. However, it now seems likely that due to time constraints, the reduction to 38.5 hours may be postponed until 2025, with the 37.5-hour target pushed to 2026.

Additionally, the bill includes a reform of the working hours registration system to prevent falsification, as well as stricter penalties for companies violating working hours regulations—matters that are by no means trivial and will require close attention.

The parties are set to meet again on October 11. The upcoming discussions will be crucial in determining the outcome of this issue, which has generated significant debate in labor circles. However, we cannot rule out the possibility of a breakdown in talks, in which case the government may move forward with the legislation, backed only by the unions.

Javier Lara

Javier Lara

Senior Manager of the Employment Department
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