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The State-Community of Madrid Bilateral Commission has resolved jurisdictional disputes regarding Article 30 of the 2026 General Budget Law of the Community of Madrid (Law 6/2025). The agreement establishes that the prohibition of compensation mentioned in said regulation does not affect those required by mandatory labour law (Annex, section I). With this commitment, both administrations consider the dispute resolved (Annex, section II).
For companies and workers subject to the regulations of the Community of Madrid, this agreement guarantees the validity of compensation rights provided for under labour law, preventing the interpretation of the 2026 Budget from nullifying them (Annex, section I). Legal uncertainty regarding the legitimacy of payments arising from employment contracts in the region is eliminated.
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