Spain: Government to cut working hours

The Spanish government has approved reducing the legal working week to 37.5 hours without cutting pay, pending parliamentary approval and employer concerns.

Key Points: The Spanish government has approved a reduction of the legal working week to 37.5 hours from 40, without cutting pay.  The employer association, CEOE, is not in favour of the move.

Why This Matters: Implementation of the measure requires parliamentary approval, which could face challenges. Reduced working hours could increase labour costs and potentially impact productivity, unless offset by efficiency gains.

What Might Happen Next: The Spanish parliament will debate and vote on the proposed working week reduction. The government may need to negotiate with employer associations and unions to secure support for the measure.

ADDITIONAL INFORMATION:

Reuters article on the situation