Reduction of Working Time

Key points

• New Maximum Working Time: The limit of 40 hours per week is formalised.
• Mandatory Gradualness: The reduction is not immediate from 48 to 40; it will be implemented in a 5-year scheme (2026-2030).
• Wage Shield: It is strictly forbidden to reduce workers' salaries under the pretext of reducing working hours.
• Distribution of the working day: It is expressly provided that the working day may be distributed by mutual agreement between employers and workers.
• Rest days: The right of workers to one rest day for every six days of work is maintained.
• New overtime regime:
  • Limit of 12 hours overtime per week, distributable in up to 4 hours per day, in a maximum of 4 days in that period.
  • 100% additional pay (double) up to 12 hours.
  • 200% additional pay on top of the regular salary if the 12-hour limit is exceeded.
• Total Prohibition: Minors under 18 years of age are prohibited from any kind of overtime.
• Electronic recording of the working day: The employer is obliged to electronically record the working day of each worker, including the starting and finishing time.

The STPS will issue the general rules that determine the scope of application and exceptions to this obligation.

Failure to keep such records will result in a fine of 250 to 5,000 times the Unidad de Medida y Actualización (Unit of Measurement and Updating).

Implementation Schedule

Reduction of the regular working day: This is the most important point for financial and human resources planning. The reduction will be 2 hours per year every 1 January:

Duration of Overtime: 

Critical Implications for Business

From a legal and compliance perspective, businesses should prepare for the following impacts:

A. Increase in Unit Labour Costs

As wages remain the same but hours worked decrease, the cost per effective hour of labour increases. If a company does not optimise its processes, it will see a direct impact on its profit margins.

B. Shift and Workforce Restructuring

Companies with 24/7 or continuous production schemes will no longer be able to cover the week with the current rotations. This will involve:

• Hiring additional staff to fill time "gaps".
• Redesigning individual contracts and internal work rules.

C. Rigidity in Overtime

The new limit is 4 hours per day, maximum 4 days per week. Exceeding 12 hours per week obliges the employer to triple pay immediately.

D. Risk of Litigation

Any attempt to "adjust" the salary to compensate for the reduction of hours will be considered a termination of the employment relationship attributable to the employer, resulting in the payment of legal damages.

E. Hidden cost in overtime

This implies an increase in the social burden since the base contribution wage will be affected by the increase in overtime expenses. Also, the cost of payroll tax will be impacted.

Recommendations for Immediate Action

It is advisable not to wait until 2027 to act.

Workday Audit: Review how many of your current employees are actually working 48 hours and who are already close to 40-42 hours.

1. Productivity Analysis: Assess whether automation or process improvement can absorb the loss of man hours.
2. Contract Update: Prepare annexes to employment contracts to document the gradual transition of working hours.
3. Time and Attendance: Implement foolproof digital time recording systems, as the cost of mismanaged overtime will be prohibitive.
4. Unions: Review the Collective Bargaining Agreement to identify if there are any clauses that clash with the phasing (e.g., already agreed 45-hour workdays that could be affected earlier than planned).

At ECIJA, we specialise in Labour Law and Social Security, understanding that this reform transcends the administrative to impact the operational and financial heart of your company. Given the complexity of this new constitutional paradigm, we are at your disposal to carry out specific impact analyses, issue strategic recommendations and accompany you in the technical implementation of the new working day schemes. Our objective is to ensure that your transition to 40 hours is carried out under a framework of strict legal compliance, mitigating litigation risks and optimising the productivity of your human capital.