Labour obligations for companies with more than 50 employees

Hiring of People with Disabilities

Companies are required to ensure that at least 2% of their workforce is made up of people with disabilities. Exceptionally, companies may be exempt from this obligation by applying alternative measures, provided they meet legal requirements and notify the labour authority.

For the calculation of this 2%, the reference period must be the 12 months prior to the time of the computation. Workers with temporary contracts lasting less than one year and workers on fixed-discontinuous contracts will be counted based on the number of days worked. Specifically, every 200 days worked will count as one full-time equivalent worker.

Failure to comply with this obligation may result in disqualification from contracting with the public sector and other penalties.

Equality Plans

Companies with 50 or more employees are legally required to develop and implement an equality plan. This plan must be negotiated with employee representatives and include a structured set of measures, adopted after carrying out a situation analysis, with the aim of achieving equal treatment and opportunities between women and men and eliminating any discrimination based on sex. Registration of the equality plan in the official register is mandatory.

Failure to comply with this obligation may result in ineligibility for employment-related subsidies and other sanctions.

Protocols Against Sexual Harassment, Gender-Based Harassment and LGTBI Discrimination

All companies, regardless of the number of employees, must have a specific protocol in place to prevent and address sexual and gender-based harassment.

In companies with more than 50 employees, this protocol must also be integrated into the measures promoting equality for LGTBI people (these measures must be implemented as set out in the applicable collective bargaining agreement or, if not regulated, in accordance with the minimum measures established in Royal Decree 1026/2024, dated October 8th).

Whistleblower Channel

All companies with 50 or more employees are required to have a whistleblower channel. In addition, they must protect whistleblowers against any form of retaliation if they report criminal or administrative offences using the legally established internal or external reporting mechanisms (e.g., criminal complaint).

Employee Representation

It should also be noted that companies with 50 or more employees may establish a works council as the representative body of the employees. In addition, they must set up a joint Health and Safety Committee with equal representation from the employer and employee sides.

Other General Obligations (Regardless of the Number of Employees)

Working Hours Register: Since 2019, all companies are required to keep a daily record of employees’ working hours, including both regular and overtime hours. These records must be kept for at least four years. It is advisable to implement an internal policy detailing the procedure and guidelines for time tracking, which should be negotiated with employee representatives.

Pay Register: Companies must maintain a pay register that includes average values of salaries, salary supplements, and non-wage compensation, broken down by gender and distributed across job groups, professional categories, or jobs of equal value.

If the gender pay gap exceeds 25%, the employer must include a justification in the register showing that the difference is due to factors unrelated to the gender of the workers.

Right to Digital Disconnection: All companies must ensure the right to digital disconnection for all employees, which involves:

• Creating an internal digital disconnection policy.

• Consulting employees or their representatives in advance.

• Establishing concrete measures to promote digital disconnection.

• Defining availability rules for roles that require it.

• Providing training and awareness for the entire workforce.

Video Surveillance and Sound Recording: If the company uses video surveillance or sound recording systems, it must have protocols in place outlining the legal basis for their use. While employee consent is not required, companies must inform employees of the implementation of such systems.