[Spain] New law allows employees to end employment contracts over salary delays

New labour regulations are in place in Spain, granting employees the right to end their employment contracts if salary payments are delayed by more than 15 days, BW People reports.

Under the updated rules, which came into force on April 3, 2025, repeated wage delays are also grounds for contract termination, and workers may claim compensation for damages.

This legislation is reportedly intended to put an end to habitual salary payment delays, ensuring that workers are paid promptly and strengthening protections against financial uncertainty. Employers must now prioritise timely payroll disbursement or risk legal consequences, including contract breaches and compensation payouts.

According to labour experts, the reform aligns with Spain’s broader effort to align with European labour standards and enhance workers’ rights in an unpredictable economic climate. The law also sends a clear message about the importance of respecting wage timelines as a fundamental condition of employment.

HR and payroll teams have reportedly been urged to tighten processes to avoid penalties. The new rule offers a safety net for employees, empowering them to take action without the fear of retaliation.

Source: BW People

New labour regulations are in place in Spain, granting employees the right to end their employment contracts if salary payments are delayed by more than 15 days, BW People reports.

Under the updated rules, which came into force on April 3, 2025, repeated wage delays are also grounds for contract termination, and workers may claim compensation for damages.

This legislation is reportedly intended to put an end to habitual salary payment delays, ensuring that workers are paid promptly and strengthening protections against financial uncertainty. Employers must now prioritise timely payroll disbursement or risk legal consequences, including contract breaches and compensation payouts.

According to labour experts, the reform aligns with Spain’s broader effort to align with European labour standards and enhance workers’ rights in an unpredictable economic climate. The law also sends a clear message about the importance of respecting wage timelines as a fundamental condition of employment.

HR and payroll teams have reportedly been urged to tighten processes to avoid penalties. The new rule offers a safety net for employees, empowering them to take action without the fear of retaliation.

Source: BW People