This May, the Government approved a significant legislative modification that directly affects the labour management of businesses. We are referring to Law 2/2025, April 29th, which reforms the Workers’ Statute and the General Social Security Law with the aim of strengthening the protection of workers who acquire a disability during their working life.
This measure represents a profound transformation in human resources procedures, particularly for companies with staff where permanent incapacity situations may arise.
Below, we explain the key aspects you need to know in order to adapt your company to this new legal scenario.
What does this reform entail?
Until now, when a worker was declared to be permanently disabled (whether total, absolute, or severely invalid), the company could terminate their contract without further formalities. This has now changed.
Under the new regulations, permanent incapacity will no longer be an automatic cause for the termination of the contract. Before considering the termination of the employment relationship, companies will need to assess whether it is possible to adapt the worker’s position or reassign them to another role that is compatible with their new conditions.
This reform follows the ruling of the Court of Justice of the European Union (CJEU) on 18 January 2024, which deemed automatic dismissal in these cases discriminatory as it contravenes the European Directive on equal treatment in employment.
How should companies act now?
From now on, companies will need to follow these steps before terminating the contract of a worker with permanent incapacity:
- Assess job adaptation: It is necessary to analyse whether reasonable adjustments can be made (such as changes in hours, redistribution of tasks, or the provision of specific tools) to allow the person to continue working in the same position.
- Explore internal relocation possibilities: If job adaptation is not feasible, the company must consider whether it can reassign the worker to another position within the organisation that is compatible with their situation.
- Document the entire process: It is essential to keep written records of the feasibility analysis and proposed measures. This documentation will be crucial in the event of a legal claim.
Only if no reasonable and objectively viable alternatives exist, can the company justify the termination of the contract, always with proper justification and in compliance with the new legal framework.
What happens if this new obligation is not followed?
Termination of the contract without following this procedure may be considered discriminatory and therefore null, leading to significant legal and financial consequences for the company:
- Mandatory reinstatement of the worker.
- Payment of wages from the date of dismissal.
- Compensation for damages.
- Administrative sanctions if the right to equality is violated.
Furthermore, in particularly severe cases, the matter could lead to criminal liability if fundamental rights violations are found.
What must companies do now?
For these reasons, companies must ensure compliance with all the new requirements to avoid the corresponding sanctions.
Firstly, they need to review their internal procedures for managing sick leave and incapacity, as well as train HR and risk prevention teams on the new obligations.
They must also update employment documentation and contractual clauses. And, of course, they need to seek specialised legal advice to manage these cases with all the necessary guarantees.
At LEIALTA, we can help you adapt your company to this reform of the Workers’ Statute, ensuring regulatory compliance and minimising legal risks. Our labour team is ready to advise you on managing permanent incapacity and updating internal policies.
