Justice sides with Holaluz employees: there were no grounds to eliminate telecommuting

The Barcelona-based energy company Holaluz has been legally challenged and ultimately condemned for its decision to eliminate remote work for its entire workforce, a move that has sparked controversy. The court ruled in favor of the employees, invalidating the company's justification for ending telecommuting. This decision has implications for other firms, especially regarding remote work policies and worker's rights. The ruling by the Social Court No. 21 followed a lawsuit filed by the CGT union and the Holaluz works council. The company had announced the end of telecommuting in late 2024, effective January 2025. The firm cited organizational and economic reasons for its decision. The court determined that Holaluz failed to provide objective evidence to support the change, and that it violated the rights of employees, who had been working remotely for five years. The impact of this ruling extends beyond Holaluz, with more than 30% of the company's employees resigning because of the decision. It highlights the legal protections afforded to workers regarding established work practices, particularly in the context of the growing adoption and subsequent retraction of remote work models. The ruling also underscores the need for companies to provide substantive justification when altering employment terms.