Unemployment increases in summer but employment hits a new record with 22.8 million employed

A labor market reform can be approved through a law processed in the Cortes Generales or, if constitutional requirements are met, through a royal decree-law subject to validation. The procedure depends on the chosen instrument and content: an ordinary law is generally approved by a simple majority; matters reserved for organic law require a special majority.

1. Presentation of the initiative

The legislative route can begin with a government bill, sent to the Congress with a statement of reasons and background, or with a bill proposal. In Congress, the latter can be presented by a parliamentary group or a deputy with the signature of fourteen others. There are also initiatives from the Senate, autonomous assemblies, and citizens, each with their respective requirements.

The Board examines the initiative and orders its publication and processing. Proposals normally require a consideration vote: the Plenary decides whether to start processing them. They are first sent to the Government to know its opinion and, when they affect budget credits or revenues, its agreement. Government bills do not need this initial vote.

2. Amendments and possible debate on entirety

The text goes to the competent committee and an ordinary period of fifteen working days to submit amendments opens, subject to modification according to the Rules. Amendments to the articles may delete, modify, or add provisions.

Groups may also submit total amendments to a bill, requesting its return to the Government or proposing an alternative text. If any exist, they are debated in the Plenary. The return ends the initiative; an approved alternative text replaces the original and opens another period for article amendments. After considering a proposal from Congress, total return amendments are not allowed.

3. Working group, committee, and approval in Congress

A working group, made up of committee members, studies the text and amendments and drafts a report. Its ordinary period is fifteen working days, extendable when complexity justifies it.

The committee debates the articles and approves a report. Then, the Plenary examines the report and the amendments that groups have maintained for that phase. For an ordinary law, as a general rule, more votes in favor than against suffice. However, approval may correspond to a committee with full legislative competence; the Plenary can recover the final decision. If there are organic matters, an absolute majority of Congress is required in a final overall vote.

4. Senate and final decision

The approved text is sent to the Senate, which ordinarily has two months to examine it and may introduce amendments or oppose a veto. If it introduces no changes nor vetoes, no further Congress vote is necessary.

• With amendments: Congress decides which to accept by simple majority.
• With veto: Congress can lift it by absolute majority or, after two months from its imposition, by simple majority. If it does not reach the necessary majority, the initiative is rejected.

Once parliamentary approval is concluded, sanction and promulgation follow, as well as publication in the BOE.

5. Alternative: royal decree-law

The Government can use this route for extraordinary and urgent necessity, respecting its constitutional limits. Congress must vote its validation or repeal within thirty days, by a vote on the whole, without amending it in that process. After validating it, it may agree to process it as an urgent bill, which does allow modifications and passes through both chambers.

The described procedure is developed in the Congress Rules.

The Ministry of Economy, Commerce and Business is entrusted with the proposal, coordination, and execution of the Government's economic policy, with special attention to competitiveness, business support, growth, and trade. Its powers are mainly specified in Royal Decree 410/2024, of April 23, which develops its basic organizational structure, within the organizational framework of Law 40/2015, on the Legal Regime of the Public Sector.

Therefore, although the question refers to "the law," the detailed distribution of functions is mainly established by a royal decree. Article 1 of this regulation also assigns it the direction of business internationalization and the supervision of foreign investments and transactions.

1. Economic policy and reforms

Through the Secretariat of State for Economy and Business Support, the Ministry is responsible for guiding, proposing, coordinating, and monitoring economic policy and its relation to sectoral policies. This includes:

• Preparing structural reforms to improve productivity and competitiveness.
• Analyzing the economic impact of fiscal, labor, social, educational, health, and other sector measures, in coordination with the competent ministries.
• Coordinating the National Reform Program and maintaining dialogue with the European Commission in the European Semester, a mechanism for coordinating national economic policies.
• Monitoring Recovery Plan reforms and evaluating the effectiveness of economic measures.

2. Economic forecasts and analysis

The Directorate General for Economic Analysis prepares the official macroeconomic forecasts of the Government, forecasts on activity, employment, and prices, and economic reports accompanying budgetary instruments. It also studies imbalances, productivity, competitiveness, and the impact of public policies on the economy and debt sustainability.

3. Treasury and financial system

The Economy scope includes the State treasury, public debt management, financial policy, regulation of financial entities, and capital markets. It also covers anti-money laundering, coordination on financial stability, and representation before international financial institutions and forums.

These tasks are mainly distributed among the General Secretariat of the Treasury and International Financing and its directorates general. It also covers powers over insurance, reinsurance, capitalization, and pension funds.

4. Business, regulation, and competition

The Directorate General for Economic Policy promotes improvements in the business climate, business creation and growth, and reduction of regulatory and financial obstacles. Its functions include proposals on insolvency, regulated professions, market unity, and competition defense. These powers are exercised without replacing the functions of independent authorities, such as the CNMC.

5. Trade and internationalization

The Secretariat of State for Trade defines, develops, and executes the state commercial policy related to domestic, foreign, and intra-community trade. It is responsible for the internationalization strategy, external promotion of Spanish companies, foreign investments and transactions, and analysis of export competitiveness.

It also performs functions on instruments supporting internationalization, risk coverage on behalf of the State, and relations with chambers and export associations. ICEX is attached to the department through this Secretariat of State.

6. Coordination and operation

The Ministry develops cooperation and international relations in its areas, coordinating with Foreign Affairs. Additionally, it coordinates European funds within its scope; the Undersecretariat manages personnel, budget, contracting, means, and common services.

The main reference is the BOE of April 24, which publishes Royal Decree 410/2024.

The requirements to work in Spain mainly depend on nationality, residence status, and type of activity. The fundamental distinction is between those subject to the European free movement regime and those who need authorization under immigration law. Also, legally residing and being authorized to work are not always the same.

1. Citizens of the European Union, EEA, and Switzerland

Nationals of the European Union, the European Economic Area, and Switzerland can work as employees or self-employed without applying for the work permit generally required for third-country nationals. They must have valid identity documentation and comply with applicable residence formalities.

If they stay in Spain for more than three months, they must apply for registration in the Central Register of Foreigners and prove the conditions applicable to their residence, for example, their status as a worker. This regime is regulated in Royal Decree 240/2007. Certain family members may also benefit from the community regime, even if they have another nationality.

2. Nationals of third countries

As a general rule, they need authorization to reside and work, unless included in an exception or holding a status that already enables it. The basic regulation is Organic Law 4/2000, developed by Royal Decree 1155/2024, applicable from May 20, 2025, and later amended by Royal Decree 316/2026.

For the ordinary route of employment contracts, these requirements usually must be met:

• Documentation and personal situation: valid passport, compliance with entry and residence conditions, and absence of entry bans. Relevant procedures require proving criminal records and legally established health requirements.
• Employment contract: a contractual offer respecting labor legislation and collective agreements, especially regarding salary and working hours.
• Employer requirements: economic capacity to fulfill the contract and compliance with tax and Social Security obligations.
• National employment situation: when required, it must allow the hiring. There are legal cases where this check does not apply.
• Processing: obtaining authorization and, when applicable, the visa, formalizing entry, and registering with Social Security within applicable deadlines.

3. Self-employment and professional qualification

To work on one's own account, the corresponding authorization requires proving the viability of the activity, necessary investment, and compliance with licenses and requirements to open or operate the business.

In any modality, if it is a regulated profession, it may be necessary to recognize or homologate the foreign qualification and meet registration requirements. Having a work authorization does not replace this professional qualification.

4. Checks before starting

There are specific routes for students, family members, people with international protection, or holders of certain authorizations. Their conditions should not be confused with those of an ordinary initial authorization.

The NIE identifies the person but does not by itself authorize work; neither is registration or a tourist stay sufficient. Before joining, it is advisable to check exactly what the authorization allows, its validity, and possible limits. Generally, employment requires being at least 16 years old, with labor restrictions applicable to minors under 18.