Spanish opposition leader proposes medical discharge powers for mutual insurers, drawing union and government backlash

Opposition proposal on sick leave

People's Party leader Alberto Núñez Feijóo presented a labor proposal during an address to the Cecot employers' association in Terrassa on 29 September 2026. Feijóo stated that, under a PP government, mutual insurance associations (mutuas) would gain the authority to discharge employees on temporary medical leave for specific health conditions. The measure would also permit these employer-managed entities to conduct diagnostic testing on workers. Feijóo argued the policy is necessary to combat fraud in medical leaves and address the financial costs of worker absenteeism, which he estimated at 30 billion euros annually.

“Are we going to facilitate that in certain pathologies the mutuals can give discharges? Yes.”

Labor data and employer costs

The proposal addresses rising rates of temporary disability recorded across Spain. According to Randstad Research figures for the second quarter, total absenteeism reached 7.2% of agreed working hours, an increase of 0.2 percentage points compared to the previous year. Temporary medical disability accounted for 5.6% of working hours. An average of 1.64 million employees missed work daily during the quarter, with 1.27 million absent specifically due to medical leave. The Spanish Confederation of Business Organizations (CEOE) calculates that temporary incapacity costs private companies 17 billion euros, alongside an additional 18 billion euros in public expenditure.

Total absenteeism7.2

Temporary medical disability5.6

Total absenteeism

7.2 % of agreed hours

Temporary medical disability

5.6 % of agreed hours

Data from the article text

Private business costs17

Public expenditure18

Private business costs

17 € billion

Public expenditure

18 € billion

Data from the article text

Union and medical inspector pushback

Trade unions and medical professionals voiced immediate opposition to transferring discharge powers to mutual insurers. Silvia Ledo, general secretary of the Social Security Medical Inspectors Union (SIMEDISS), described the proposal as unreasonable and argued that temporary incapacity oversight must remain with independent public officials. Under current legislation, mutual insurers can directly discharge workers only during the first year of leaves caused by professional contingencies, which represent one in ten cases. For non-work-related illnesses, mutuas can monitor files and suggest discharges, but final decisions rest with public health doctors or state inspection teams.

“The real solution to the problem would be to increase resources, means, and doctors in the public health service, increase the number of Social Security medical inspectors, and establish computer tools that guarantee adequate and agile communication between them.”

Union leaders from CCOO and UGT argued that mutual insurers represent employer interests and cannot act impartially when managing sick leave terminations. UGT deputy general secretary for trade union policy Fernando Luján emphasized that medical decisions should stay within the public health network, noting that granting discharge powers to entities that administer sick leave funds creates a conflict of interest.

“Discharges and leaves must continue to be issued by the public health service doctor.”

Government stance and business reactions

Minister of Inclusion, Social Security and Migration Elma Saiz addressed the controversy during the 39th Pimec Awards ceremony at Barcelona's Palau Sant Jordi on 30 September 2026. Saiz urged business representatives to maintain rigor with statistics and language, arguing that legitimate illness must not be conflated with fraudulent absenteeism. Pimec president Antoni Cañete acknowledged absenteeism as a structural challenge, advocating for expanded primary care investment to cut waiting times while supporting broader operational roles for mutual insurers.

“An unjustified absence and a person who cannot work because they are sick are not the same reality.”

Saiz called on employers to increase investments in workplace risk prevention to curb occupational injuries and illnesses before absences occur.