Spain
Response plan to the crisis in the Middle East
Impact date: 21 March 2026 (day after publication). Dismissal ban and related measures apply until 30 June 2026.
A new Decree introduces temporary labor measures in response to the Middle East crisis, with the aim to protect employment during the crisis. For companies benefiting from public aid, dismissals based on economic, technical, organizational or production-related (ETOP) grounds or force majeure linked to the crisis are prohibited until 30 June 2026. The measures also extend protection to fixed-discontinuous workers by preventing employers from relying on the crisis as grounds for failing to call them back or terminating periods of activity. In addition, the Decree accelerates the deadline for implementing sustainable mobility plans from 24 months to 12 months for certain employers, and links eligibility for some public subsidies to compliance with those obligations. Certain workforce reduction measures in cooperatives are also restricted.
Employer implications/action needed Employers should assess whether they receive public aid covered by Royal Decree-Law 7/2026 and, if so, avoid relying on crisis-related ETOP or force majeure grounds for dismissals. Employers using fixed-discontinuous workers should review call-back practices and ensure compliance with statutory and contractual obligations. Businesses that fall within the scope of the sustainable mobility plan requirements should ensure implementation within the shortened timeframe and review whether continued access to subsidies depends on compliance with those obligations.
Employer risk Non-compliant dismissals may be declared null and void, with reinstatement obligations and back pay exposure. Employers may also face repayment of public aid or subsidies if the applicable conditions are breached. The measures are likely to increase scrutiny of restructuring decisions and workforce management practices during the temporary protection period.
Social Security contribution rules for 2026
Impact date: 1 April 2026 (following publication). Economic effects apply retroactively from 1 January 2026.
An Order updates Social Security contribution bases and rates for 2026, aligning them with minimum wage increases and system sustainability criteria. It sets new minimum and maximum bases (including a maximum of approx. €5,101.20/month), defines contribution rates for common contingencies, unemployment, training and the Wage Guarantee Fund, and establishes specific rules for special situations (e.g. part-time work, sick leave or multiple employment). It also reinforces mechanisms such as the intergenerational equity mechanism (MEI) and additional solidarity contributions.
Employer implications/action needed Employers should review payroll and Social Security contribution systems to ensure they reflect the updated bases, caps and contribution rates for 2026. This may require adjustments and back payments to account for the retroactive application from January 2026. Employers should also verify compliance across different worker categories and employment arrangements, including part-time employees, trainees, employees on leave or sick leave, and workers with multiple employments. Additional contributions, including the MEI and solidarity contribution, should also be correctly calculated and applied.
Employer risk Incorrect calculation or payment of contributions may expose employers to Social Security inspections, surcharges, penalties and retroactive liabilities. The retrospective effect of the Order increases the risk of underpayments for the period from January 2026. Employers with complex workforce structures or multiple contract types may also face increased payroll compliance and administrative burdens.
Link Order PJC/297/2026
Social economy framework
Impact date: 10 April 2026. Certain obligations (e.g. corporate website for cooperatives with >500 members) apply from 10 April 2027.
A new Decree reforms the social economy framework, including cooperatives and work-integration enterprises. The reforms modernize the legal framework governing cooperatives by updating governance rules, strengthening transparency and members’ participation rights, and expressly recognizing digital and remote participation mechanisms, including telematic meetings and communications. The Law also reinforces equality-related obligations in line with Spain’s equality legislation, introduces obligations such as corporate websites, and updates membership rules. For work-integration enterprises, it expands eligible groups, strengthens reinvestment obligations, introduces a transition-to-employment contract, and tightens supervision, while also updating the broader legal and tax framework.
Employer implications/action needed Cooperatives and other affected social economy entities should review their governance arrangements, bylaws and internal rules to ensure compliance with the updated framework. Employers may need to implement or enhance digital communication and corporate website systems, adapt meeting and voting procedures to facilitate remote participation, and review compliance with applicable equality obligations. Work-integration enterprises should also assess whether their operational structures, reinvestment practices and worker integration processes comply with the revised legal requirements.
Employer risk Failure to comply with the revised governance, transparency or equality requirements may result in administrative sanctions, regulatory scrutiny or challenges to corporate decisions. Cooperatives may also face risks relating to potential disqualification where their structure or operation is considered inconsistent with cooperative principles. Work-integration enterprises may face loss of status, financial exposure or restrictions on access to public support if reinvestment or social-purpose obligations are not met.
Link Law 1/2026
Internships
Impact date: Awaited. On 4 November 2025, the draft was approved by the Council of Ministers.
The Law on the Statute for Non-work Internship Trainees in Companies (Trainee Statute) is expected to be approved. On 11 December 2024, the Ministry of Labor and Social Economy submitted for public hearing the preliminary draft Trainee Statute. This draft seeks to regulate key aspects of non-labor internships, such as the maximum number of internships per company, the limits on the duration of internships, access to appropriate resources and support, and the reimbursement of expenses.
Employer implications/action needed Employers should monitor the progress of this anticipated reform.
Employer risk N/A
Link N/A
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