Spain – March 2026 The Spanish government has approved RoyalDecree-Law 7/2026 of 20 March, establishing Rules Applicable to Fixed‑discontinuous The same dismissal-related restrictions are extended to Therefore, the grounds cited in the previous section cannotbe used to justify the end of the activity period, nor the failure Background and Purpose of the Legal Alert The purpose of this legal alert is to provide an overview of themain measures introduced by the Royal Decree-Law 7/2026 This ensures that companies benefiting from public aid do notavoid the employment-maintenance obligation by modifying In light of the above, before proceeding with any dismissaluntil 30 June 2026 based on ETOP grounds or force majeurearising from the situation that the relevant measures areintended to address, it is advisable to verify any direct public This regulation has been adopted by the Spanish governmentas an urgent response to the economic and geopoliticalconsequences arising from the recent escalation of the Although the bulk of the Royal Decree-Law focuses onenergy, fiscal and industrial measures, it also introducesseveral provisions with significant implications for labor law, We would be pleased to discuss the implications of thisdevelopment with you and to assist with any immediate The Royal Decree-Law entered into force on the day followingits publication in the Official State Gazette (BOE), meaning Contacts Key Employment-related Measures Ignacio RegojoPartner, MadridT +34 91 426 4804M +34 647 545152E ignacio.regojo@squirepb.com Prohibition of Dismissal for Companies Companies benefiting from direct public aid are prohibitedfrom dismissing employees on economic, technical,organisational or production-related (ETOP) grounds, or force Juan NasarreDirector, MadridT +34 91 426 4866E juan.nasarre@squirepb.com Any dismissal carried out in breach of this prohibition must beclassified as null and void, and obliges the company to repay