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The PJC/654/2026 Order extends until December 31, 2026, the activation of the RED Mechanism for vehicle manufacturing, previously activated by the Council of Ministers Agreement of December 23, 2024 (art. 47 bis of RDL 2/2015). This mechanism allows labor flexibility and employment stabilization. The extension takes effect from July 1, 2026, and companies must maintain activation throughout the period until December 31, 2026.
For companies in the motor vehicle manufacturing sector, a key tool for managing working hours and preventing redundancies remains in place. Labour authorities and advisors must monitor compliance with the mechanism during the extended period. Workers may benefit from flexible working hours, although there are no changes to basic rights. Companies that fail to keep the mechanism active could face sanctions for non-compliance with employment stabilisation regulations.
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