Labor and Employment Law

Garrigues

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  • Mexico continues the legislative process toward the reduction of the 40-hour working week

    The constitutional reform sets a gradual reduction until 2030, maintains wages and benefits, and redefines overtime limits, forcing companies to reorganize shifts and processes to sustain their productivity.

  • Spain: Publication of the minimum wage (SMI) for 2026

    The minimum wage (SMI) has been increased by royal decree by 3.1%, to 1,221 euros per month, effective since January 1.

  • Spain: Labor measures from the repealed Royal Decree‑Law 16/2025 are reinstated in connection with contributions, the rate for occupational accidents and illnesses and restrictions on dismissal

    Following the repeal of Royal Decree-Law 16/2025 by the Lower House of the Spanish Parliament, the Government again approves the social security contribution measures, the rate for occupational accidents and illnesses linked to the CNAE-2025 and restrictions on dismissal at companies that receive public aid.

  • Absenteeism, compensation policies, and discrimination due to illness

    Although combating absenteeism constitutes a legitimate aim, there is serious debate in current judicial doctrine regarding the validity of compensation policies that condition accrual on the effective performance of work and their effects in cases of temporary incapacity (TI).

  • Labor Newsletter - January 2026

    Compilation of the most relevant legal developments in the field of labor law in Spain.

  • Repeal of Royal Decree-Law 16/2025 which adopted measures such as the extension of the national minimum wage and the update of contribution bases

    The Plenary of the Lower House of the Spanish Parliament has repealed Royal Decree-Law 16/2025, which adopted urgent measures in economic, tax and social security matters, and extended certain measures to address situations of social vulnerability.

  • Portugal: Retirement age increases to 66 years and 11 months in 2027

    Considering the evolution of life expectancy recorded in 2024 and 2025, the standard age to access retirement pension in the Portuguese general social security system in 2027 will increase to 66 years and 11 months.

  • Spain - New Sustainable Mobility Law: this is the regulatory framework for an orderly transition to a new transport system

    The law sets out the roadmap for decarbonizing transport in Spain, establishes a new framework for coordinated planning, strengthens the role of public transport, and promotes the modernization of the mobility system. Among its measures, it includes the obligation to approve a new concession map for road passenger transport and to implement sustainable mobility plans for commuting to work.

  • Spain: The Government approves the implementing regulations on training contracts

    The regulatory framework for training contracts has been implemented following the 2021 labor reform, with provisions on the two contract types: for alternance training and for work experience. It places a cap on the number of training contracts.

  • Mandatory retirement and equality

    The ability for collective agreements to allow mandatory retirement at ordinary retirement age has significant implementation limitations and difficulties