Spain's Council of State has issued a highly critical opinion against the Labor Ministry's draft royal decree to reinforce the digital hourly register, stating it should not be approved. The advisory body criticizes the underestimated economic impact, lack of sector-specific adaptations, and data protection issues. Labor Minister Yolanda Díaz's department defends the measure as essential for law compliance.
Spain's Council of State approved last week a non-binding but highly unfavorable opinion on the Labor Ministry's draft royal decree, aimed at implementing an interoperable digital hourly register to combat unpaid overtime. The opinion concludes: “No procede aprobar el real decreto proyectado” [It is not appropriate to approve the proposed royal decree] and incorporates criticisms from other bodies like the Economy Ministry (led by Carlos Cuerpo), Public Function (Óscar López), and the Spanish Data Protection Agency (AEPD). The Council, chaired by Carmen Calvo, estimates an initial annual impact of 867 million euros for 1.35 million companies and 15.6 million workers, criticizing the regulatory impact memorandum for underestimating it. It highlights burdens on SMEs, the need for sector adaptations such as hospitality, transport, or doormen, and lack of data protection guarantees, as the technical system is undefined. It also deems the royal decree to invade legislative powers, aligning with CEOE complaints, and finds the urgent processing unjustified. The Economy Ministry issued two unfavorable reports (December and February), positively valuing the objective but negatively the implementation, requesting transition periods and sector exemptions. Labor responds: “Es incomprensible que alguien [...] pueda situarse en contra de un instrumento que lo que quiere es garantizar que se cumpla la ley [...], y que las empresas que abusan [...] paguen las horas extraordinarias como corresponde” [It is incomprehensible that anyone [...] could oppose a tool that seeks to ensure compliance with the law [...], and that companies abusing [...] pay overtime as appropriate]. They note it is part of the 2023 PSOE-Sumar coalition agreement, negotiated with CCOO and UGT after the 37.5-hour law failed in Congress.