INFORMATION NOTE MAY 2025 ENJOY YOUR HOLIDAYS, SEASONAL WORKERS (SUMMARY: We are aware that the Labor and Social Security Inspectorate has issued a violation notice because the company paid three seasonal workers for unused vacation time at the end of the season. The Labor and Social Security Inspectorate argues that this constitutes a serious violation because vacation time cannot be paid for and has proposed a fine of €3,000. The possibility of paying for vacation time is only established in the event of contract termination, not suspension of seasonal workers. The above stems from a ruling by the High Court of Justice of the Balearic Islands, which states that, as the Workers' Statute establishes that vacation time must be taken and cannot be paid for (except in the case of contract termination, not suspension as occurs with seasonal workers), therefore, at the end of the season, seasonal workers must take or have taken their corresponding vacation time. Employers are obligated to negotiate vacation periods with their employees. This issue affects ALL companies with seasonal workers (such as hotels, restaurants, shops, etc.). The Social Chamber of the High Court of Justice of the Balearic Islands, in a ruling dated February 26, declared several articles of the collective bargaining agreement for the hospitality sector in the same autonomous community null and void for violating workers' right to vacation. Specifically, the judges believe that granting employers the power to unilaterally decide on days off violates the Workers' Statute and, furthermore, European Union law. While it is true that collective bargaining agreements may contain provisions regarding annual vacation planning, it is not permissible to attribute the determination of the vacation period or periods to the employer's unilateral decision, nor is it permissible to establish in the collective bargaining agreement a notice period of only five days for the start date of vacations, because workers have the right to know their corresponding vacation period at least two months before it begins. The collective bargaining agreement for the hospitality sector in the Balearic Islands does not comply with the minimum and mandatory provisions of the Workers' Statute when it establishes that companies may distribute the equivalent compensatory rest days for public holidays worked; nor when it establishes that the company may schedule the employee's vacation during the guaranteed employment period on dates it agrees upon, even before the right to vacation has accrued, either continuously or in installments, and this same violation of the Workers' Statute implies the obligation of five days' notice. This contradiction between the Collective Bargaining Agreement and the Workers' Statute cannot be resolved by granting certain benefits that may be more advantageous to fixed-term seasonal workers, such as guaranteed employment, regulations governing call-up conditions, and other provisions not included in the legal framework. Precisely because of the special legal nature of fixed-term seasonal contracts, it is not possible to agree on vacation periods or provide advance notice of their commencement as stipulated in the collective bargaining agreement, since neither party knows how many vacation days will accrue, the start or end dates of the work period, or whether the contract will be temporarily interrupted. The Court finds that the principle of equality is violated by the inability to accurately determine the employment period for fixed-term seasonal workers in the vacation schedule, and by the fact that these workers cannot be notified of the start of their vacation period with the legally required advance notice and under the same conditions as permanent employees. It is not possible to introduce, through a collective bargaining agreement, a differentiated system for fixed-term seasonal workers regarding the enjoyment of vacation time and compensation for paid, non-recoverable public holidays on which they work. The provisions of the agreement that allow the employer to unilaterally and freely determine vacation entitlements in a way that diminishes this right are not only contrary to the provisions of the Workers' Statute, but also to European Union law, which maintains that the purpose of the right to paid annual leave is none other than to allow workers to rest and enjoy a period of leisure and recreation. Specifically, the ruling declares Article 8.6 and the last paragraph of Article 17 of the hospitality sector agreement null and void. These articles allowed employers to unilaterally decide the days on which these employees could take their vacations and, moreover, to notify them with only five days' notice, as they are considered contrary to Article 38 of the Workers' Statute and the case law of the Court of Justice of the European Union.