2024 marks an important milestone in Spanish legislation with the approval of Organic Law 2/2024 on Gender Equality in Spain, designed to promote effective equality between women and men in the political and economic spheres. This new law introduces modifications to numerous regulations with the aim of guaranteeing equal representation in decision-making bodies, ensuring that no gender exceeds 60% or is less than 40% in such spaces.
Objectives of Organic Law 2/2024
The main objective of this legislation is to achieve balanced gender representation at all levels of decision-making, ranging from government bodies to private sector companies. The law seeks to remove barriers to equal participation and foster a more inclusive environment in institutions and organizations across the country.
Scope of Application
Political and Administrative Bodies
As of August 22, 2024, the obligation of joint representation will apply to the following sectors:
- General Electoral System
- Constitutional and constitutionally relevant bodies
- Government and General State Administration
- State-owned radio and television
- Professional Associations and the University System
- Public awards and foundations
Companies and Partnerships
Listed Companies
The top 35 companies by market capitalization must comply with parity representation as of June 30, 2026.
Other listed companies will have until June 30, 2027 to comply with these regulations.
Failure to comply with this obligation will be considered a serious infringement, with sanctions imposed by the National Securities Market Commission (CNMV) according to the Securities Markets and Investment Services Law (Law 6/2023, art. 292.c).
Unlisted Companies
These companies, which are considered public interest entities, must comply with parity representation if:
- They have more than 250 workers.
- Its annual turnover exceeds 50 million euros or its total assets exceed 43 million euros.
The key dates for these entities are:
- Achieve 33% representation of the underrepresented sex by June 30, 2026.
- Reach 40% by June 30, 2029.
Social Economy, Trade Unions and Business Associations
- Social economy entities: As of June 30, 2028, those with more than 125 workers and an annual budget of more than 20 million euros must comply with parity representation.
- Unions and business associations: Also as of June 30, 2028, they must adjust their representative, governing and administrative bodies to the new regulations. If the percentage of representation is not met, a detailed explanation of the causes and the measures taken to correct it will be required.
Implications and Challenges
The implementation of Organic Law 2/2024 represents a significant challenge for many organizations, but also an opportunity to foster positive change towards gender equality. Companies should review their selection and promotion policies to ensure compliance with these new obligations.
In addition, the law is expected to encourage greater participation of women in leadership positions, thus promoting a more diverse and inclusive environment. This will not only benefit women, but will also enrich decision making and strengthen the competitiveness of organizations.
Gender Equality in Spain
The approval of Organic Law 2/2024 is a crucial step towards gender equality in Spain. Tecem Abogados is committed to helping organizations understand and comply with these new obligations, offering legal and strategic advice to ensure a successful transition to parity representation. Contact us for more information on how we can help you comply with this important legislation.