Termination of employment due to permanent disability: what changes with Law 2/2025

Law 2/2025 removes the automatic termination of employment in cases of permanent disability and requires companies to first assess potential adjustments or redeployment opportunities.

Key changes in the Workers' Statute

Suspension of the employment contract with job retention (Art. 48.2 ET)
Employment may be suspended for up to two years if recovery is expected, with guaranteed job retention.

Termination subject to conditions (new Art. 49.1.n ET)
Termination is only valid if all of the following apply:

• No reasonable adjustments can be made without undue burden on the company.

• There is no vacant position compatible with the worker’s new capacities.

• The worker refuses a suitable redeployment offer.

Undue burden and company size
The law defines "undue burden" based on the company’s size and financial situation, with special consideration for companies with fewer than 25 employees.

Deadlines

• The worker has 10 days to express their wish to stay.

• The employer has 3 months to propose adjustments or justify termination.

Changes in the General Social Security Law

• Art. 74.5 of the LGSS allows suspension of the disability pension if the worker continues in an adapted role.

• Terminology updates: “severe invalidity” is replaced with “severe disability”.

Legal proceedings related to these terminations will be given priority handling.

Law 2/2025 promotes labour inclusion and continuity, requiring companies to exhaust all options before terminating employment. A reform that balances worker protection with business realities.