New labour reform 2023 in Spain. Changes and novelties

On 3 February 2022, thanks to a complex vote in the Spanish Congress of Deputies, the Spanish Government managed to push through Royal Decree-Law 32/2021, of 28 December, on urgent measures for labour reform, guaranteeing job stability and transforming the labour market. A legal text that, at a popular level, became known simply as the 'Labour Reform of 2022'.

This decree-law entailed substantial changes to the Workers' Statute. However, throughout the 2023 that is about to end, the Executive has also implemented far-reaching changes in the national labour market. But what exactly are they? Here we are going to analyse what we could call the 2023 Labour Reform in Spain. We will do so in chronological order to make it clearer.

You no longer have to submit a physical or paper discharge form

This is the first important change that took place in 2023. It did so through Royal Decree-Law 1060/2022, of 27 December, which modified the presentation of this type of document. It came into force on 1 April 2022 and made it possible to manage the entire medical leave process telematically.

From that moment on, sick leave of any kind could be carried out 100 % telematically and from the primary care health centre to the company itself. In this way, it is not even necessary for the worker to intervene directly, which speeds up and facilitates communication between the parties concerned.

New rise in the Minimum Interprofessional Wage

In this case, we refer to Royal Decree-Law 99/2023 of 14 February. Thanks to it, the Minimum Interprofessional Wage or SMI rose to 1,080 euros gross per month in 14 payments, which would be equivalent to 36 euros per day or 15,120 euros gross per year. It all depends on the contract payment fixing period.

Pension reform

It was carried out through Royal Decree-Law 2/2023 of 16 March. It is essentially an attempt by the Spanish government to guarantee the payment of pensions for the next 30 years, which is when the baby boomers will retire and the effects of the falling birth rate in Spain will begin to be felt.

Its primary objective is to strengthen the financial capacity of the public pension system and establish a set of new solid foundations on which to build.

Temporary incapacity for work due to termination of pregnancy and incapacitating menstruation

Two rights traditionally demanded by women's protection and defence groups in Spain were embodied for the first time in a legal text. Specifically, we are talking about Organic Law 1/2023, which amended Organic Law 2/2010 with the aim of introducing the right to enjoy temporary incapacity caused by incapacitating menstruation and interruptions of pregnancy.

It also introduced the figure of temporary incapacity in all cases from the 39th week of pregnancy, which until now had not been included. It came into force on 1 June 2023.

The new employment law

Undoubtedly, of all the new 2023 employment novelties that we have just discussed, this is the most important of all. It is Royal Legislative Decree 3/2023, of 28 February, which repeals Royal Legislative Decree 3/2015, of 23 October. Only articles 15-18 remain in force.

This legal text came into force on 2 March 2023 after being published in the Official State Gazette (BOE) the previous day. It is a very important law because, as we are going to see below, it introduces profound changes in the National Employment System (which was renamed the Spanish Employment Agency).
Here we are going to analyse what each of its six chapters says in order to better understand this new labour law:

• Title I. In it we can see the general provisions, the new definition of the National Employment System and the objective of what is known by many as the latest labour reform. It also defines which administrations have competences in the matter.
• Title II. It revolves around the creation of the Spanish Employment Agency to replace the National Employment System. It also details the public employment services of the Autonomous Communities, as well as the requirements and conditions to be met by all collaborating entities.
• Title III. For many, the most important of all, as it focuses on active employment policies, which are those aimed at facilitating insertion and reintegration into the labour market and creating decent job opportunities.
• Title IV. On the one hand, it presents the catalogue of services available to the employed, self-employed and unemployed, with special emphasis on entrepreneurship. On the other hand, it establishes what is known as the 'Common Portfolio of Services'.
• Title V. On the financing of labour policies, which is basic to the new labour reform 2023. In this regard, it establishes the budgetary regime of the new Spanish Employment Agency, the European Union funds and the monitoring and control bodies.
• Title VI. It establishes the need for a planned, continuous and targeted evaluation of employment policies. In other words, it is open to new constant changes depending on the evolution of the labour market in Spain.

Changes for employees and employers

In contrast to the 2022 Labour Reform, the changes introduced over the last 12 months have not led to major changes in the 2023 employment contracts. However, a number of adaptations have been necessary.
As far as companies are concerned, we can say that the most important of these are the following:

• Personnel management. In terms of recruitment and, above all, the training and development of employees within their organisation.
• Labour costs and tax benefits. Derived mainly from the rise in the minimum wage and European Union funds.
• Culture and climate. There is an obligation to transmit the new rights and obligations of the aforementioned legal texts in order to ensure a smooth transition and avoid conflicts.

On the other hand, as far as employees are concerned, we can say that:

• Greater number of employment rights and benefits. Such as those mentioned above with regard to the telematic application for temporary incapacity and leave due to incapacitating menstruation and voluntary interruption of pregnancy.
• Better family reconciliation. Changes are made to working hours, breaks and working hours as a whole with this objective in mind.
• More opportunities for growth. Fundamentally, thanks to the changes introduced in the new Spanish Employment Agency.

In short, these are all the changes to Spanish labour legislation over the course of 2023. It is true that, contrary to what happened in 2022, no major reform of the Workers' Statute has been introduced, but the modifications have been significant. Most of them are aimed at improving the working conditions of employees. For any clarification on what the new labour reform entails, you can contact our labour lawyers in Madrid.