Home | Alerts | Sick Leave benefits, public Holidays falling on Saturdays and early retirement due to disability: three recent labour developments in Spain in 2026

Sick Leave benefits, public Holidays falling on Saturdays and early retirement due to disability: three recent labour developments in Spain in 2026

Sick Leave benefits, public Holidays falling on Saturdays and early retirement due to disability: three recent labour developments in Spain in 2026

Several judicial and administrative developments have recently been announced that affect corporate labour management. This is not a major legislative reform, but rather new case law criteria and administrative decisions that require companies to review certain internal practices.

Below, we analyse three recent developments that should be on every HR and management team’s radar.

New Supreme Court Criterion on Sick Leave and Benefits

The Spanish Supreme Court has issued a ruling that introduces an important change regarding temporary incapacity (sick leave) due to relapse of the same illness.

Under this new interpretation, the Social Security authorities may not automatically deny sickness benefits in certain relapse situations. The ruling reinforces employee protection in cases where a worker experiences a recurrence of the same medical condition following a previous medical discharge.

Previously, in certain cases of relapse following medical discharge, entitlement to receive temporary incapacity benefits again was questioned. With this clarification, the Spanish Supreme Court states that benefits cannot be denied automatically without the appropriate analysis and procedure. As a result, stricter administrative control over temporary incapacity processes and their correct classification is required.

 

For companies, this criterion does not imply involvement in the recognition of the benefit itself, as this falls exclusively within the powers of the INSS or the relevant mutual insurance entity. However, it does require rigorous administrative management of relapse situations, particularly in the communication of medical reports, monitoring accumulated periods and correctly applying the delegated payment system where applicable.

Although the payment of benefits falls under the responsibility of the Social Security system, employers play a key role in the communication and processing of medical certificates. It is therefore essential to understand the scope of this new judicial criterion.

Compensation for Public Holidays Falling on Saturdays: The Role of Collective Bargaining Agreements

Certain recent rulings have reopened the debate on the compensation of public holidays falling on Saturdays, reminding employers that there is no automatic entitlement to additional compensation if the applicable collective bargaining agreement does not expressly provide for it.

Spanish labour regulations establish a minimum number of public holidays per year. However, the compensation of those holidays that fall on non-working days largely depends on the applicable collective bargaining agreement and on each company’s specific working time arrangement.

There is no automatic or uniform rule applicable to all organisations. Companies must carefully review:

  • The approved annual working calendar.
  • The working time provisions established in the collective agreement.
  • Any specific clauses regarding compensation for public holidays.

In sectors where Saturday is not a working day, the question may arise as to whether an additional day off is required. The answer depends on a case-by-case analysis and should not be based on general assumptions, which could lead to unnecessary disputes.

New Medical Conditions Allowing Access to Early Retirement Due to Disability

The Social Security authorities have recently recognised eleven new medical conditions that may allow affected individuals to access early retirement on the grounds of disability, provided that the legal requirements are met.

This expansion broadens the list of qualifying illnesses that may justify a reduction in the statutory retirement age in certain cases, strengthening social protection for persons with disabilities.

From a corporate perspective, this development may impact workforce planning, projections for early retirements and the management of replacements or internal reorganisations.

In the case of Special Employment Centres, monitoring these developments is particularly relevant, as part of their workforce may be directly affected.

However, these conditions are not limited to protected employment environments and may also apply to employees in ordinary companies.

What Companies Should Review in 2026

These three developments illustrate how the labour environment continues to evolve. For companies, this means updating temporary incapacity management protocols, reviewing annual working calendars and anticipating potential workforce changes due to early retirement.

At LEIALTA, our labour law team supports companies and entities in the interpretation and practical application of these changes, providing ongoing advice and strategic guidance.

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