Legal news

Labour reform on permanent disability

By:

Aurora Sanz,

Carlota Arderiu

06 May 20252 min read

Companies must now adapt to a new labour framework: Law 2/2025 requires a reassessment of how permanent disability cases are managed, prioritising job readjustments and limiting the grounds for contract termination. A reform with direct impact on internal HR procedures.

The Official State Gazette (BOE) of April 30, 2025 has published Law 2/2025, of April 29, which amends both the Revised Text of the Workers’ Statute and the General Social Security Law, introducing significant changes regarding permanent disability. This reform promotes labour inclusion and non-discrimination by modifying the current legal framework for managing disability-related situations in the workplace.

The law will enter into force on May 1, 2025.

Key Updates

1. Elimination of automatic termination of employment in cases of permanent disability
From now on, employment contracts will no longer be automatically terminated when a worker is declared in a situation of total, absolute, or severe permanent disability (formerly “great invalidity”).

Termination will only be permitted if:

Reasonable adjustments cannot be made due to disproportionate burden on the company.
No suitable vacant position is available for reassignment.
The employee rejects a compatible position offered by the company.

2. Obligation to implement reasonable adjustments
Companies are required to adapt the employee’s role to their new circumstances, provided such adjustments do not impose an excessive burden. When assessing this, the following will be considered:

The size of the company
The resources available
Any applicable public support or subsidies

3. Timelines and procedure

The employee has 10 calendar days from the notification of permanent disability to express their wish to maintain the employment relationship.
The company has 3 months to implement the adjustments or reassign the worker to a suitable position. If neither is possible, the contract may be lawfully terminated.

What Do Companies Need to Know About the New Law 2/2025?

The recent reform of the Statute of Workers and the General Social Security Law introduces significant changes in the management of permanent disability. Here are some key questions to understand its impact.

What does the elimination of automatic termination of the contract due to permanent disability entail?
What are considered "reasonable adjustments" and what criteria are used to evaluate them?
In what cases can the company legally terminate the contract according to the new regulations?
What deadlines must companies comply with after a permanent disability declaration?

4. Changes to the General Social Security Law
Article 174 of the General Social Security Law is amended to align the economic effects of temporary and permanent disability with the new rules introduced in the Workers’ Statute.

5. Priority in legal proceedings
Legal proceedings relating to the termination of contracts due to permanent disability will be classified as urgent and given priority handling.

6. Inclusive language update
The term “great invalidity” is officially replaced with “severe disability”, promoting a more inclusive and respectful terminology.