Labor and Employment Newsletter - July 2025
European Regulation on Artificial Intelligence and Industrial Relations
Regulation (EU) 2024/1689 of the European Parliament and of the Council regulates the implications of the use of artificial intelligence also in the context of labor relations, both individually and collectively.
News
The Supreme Court rules that compensation for unfair dismissal cannot be increased by the courts
It rejected the binding nature of decisions issued by the European Committee of Social Rights, which has found that the current Spanish legislation breaches the European Social Charter.
On the radar
- The Council of Ministers begins the ratification of ILO Convention 191 on the fundamental right to safe and healthy work
- Amendments are presented during the passage through parliament of the bill for reduction of the maximum working hour limit
- Approval of the prior procedure for determining the assumptions for bringing forward the retirement age through the application of reduction multipliers
Judgments
- The compensation obtained from the dismissal of a permanent-discontinuous employee must be calculated exclusively by reference to periods of effective work
- Companies can deduct payments in excess of salary if the debt is liquid, due and payable, and not disputed
- Failure to give notification of periods of medical leave, after prior warnings and sanctions, can be a ground for justified dismissal
- The exclusion of periods of temporary incapacity for more than 90 days in the proportional calculation of a bonus does not constitute discrimination
- A prior hearing is not required before notification of the dismissal if it occurred before November 18, 2024
- Minor penalties may be applied to infringements classified as very serious
Labor and Employment Blog
How to keep talent through permanence agreements and retention bonuses
Faced with increasing difficulties in attracting and retaining talent, many companies are turning to measures such as specialized training and financial incentives. In this context, we analyze two tools whose implications should be known: the permanence agreement regulated by the Workers’ Statute and retention bonuses.
LGBTI measures in the workplace: refresher on companies' obligations
In the week in which International LGBTI Pride Day is celebrated (28 June), we refresh the obligations of companies in relation to equality and non-discrimination of LGBTI people.
Video surveillance at work: legal keys to proper use
Article 20.3 of the Workers' Statute allows the employer to adopt the measures it deems most appropriate to verify compliance with the employees’ labor obligations and duties. One such measure can be video surveillance. In this post we provide a practical guide on its use.
In April 2025, new rules on access to the retirement pension introduced by Royal Decree-Law 11/2024, of 23 December, to improve the compatibility of the retirement pension with work, came into force. Among other issues, the requirements for access to active retirement are modified, expanding the possibilities for employees who wish to extend their working life while receiving a pension.
In the press
In this article published in elderecho.com (Lefebvre), Raúl Vázquez, partner at Garrigues, looks at the bill to reduce the maximum limit on ordinary working hours and guarantee the recording of working time and the right to disconnect.
Can an employment contract be terminated due to a declaration of the employee’s disability?
Mauricio Maggiora, senior associate, addresses in this article published in La Verdad de Murcia, the entry into force, on April 30, of Law 2/2025, which significantly amends the Workers' Statute in relation to one of the grounds for termination of the employment contract: the declaration of the employee’s disability.
In Latin America
- Data protection evolving regulation in Latin America and their impacto on labor relations
- Mexico: Rules Approved for the Inclusion of Digital Platform Workers in the Social Security Regime
- Colombia: New labor reform approved to promote decent work, strengthen rights and regulate new forms of employment
- Peru: Employers must pay bonuses for National Holidays before next Wednesday, July 15
- Citizens of Japan and Qatar will no longer require a visa to enter Peru
- Chile: The law establishing a readjustment of the minimum monthly income, with retroactive effect, as of May 1, 2025, is published
- Chile: Companies are required to inform employees every six months about the prevention of workplace and sexual harassment and violence at work
- Peru: Companies with more than 100 employees will no longer be required to hire a social employee
- Colombia: Pension reform establishing a comprehensive social protection system for old age, disability and death of common origin enters into force
- Chile: Supreme Court Reinforces Defendant's Right to Access Background Records in Harassment Investigations
- Mexico: National Workers' Housing Fund Institute (INFONAVIT) Sets Deadline for Employers to Cover Housing Loans of Absent or Incapacitated Workers
- News on medical licenses in Chile: modifications, requirements and whistleblowing channel
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