Organic Law 2/2024: Spain takes a major step against the glass ceiling
On 22 August 2024, Organic Law 2/2024 of 2 August, also known as the Parity Law, came into force. This legislation marks a turning point in gender equality in leadership roles, both in the public and private sectors.
The law transposes into Spanish law Directive (EU) 2022/2381 on improving gender balance on the boards of listed companies. However, its scope goes well beyond the minimum requirements set by the European framework.
What changes under the Parity Law in Spain?
Spain has not merely transposed the EU directive word for word. The new law extends its reach beyond the corporate world, setting mandatory gender balance quotas—ranging between 40% and 60% representation for each sex—across a broad range of public and private bodies.
It applies to, among others:
Constitutional bodies and bodies of constitutional relevance, such as the Constitutional Court and the Council of State
- The General State Administration, including ministers, secretaries of state, and senior officials
Collegiate bodies in the state public sector and institutional public entities
Boards of directors of listed companies
So-called Public Interest Entities (even if not listed) if they meet at least two of the following thresholds:
- More than 250 employees
- Annual turnover exceeding €50 million
- Total assets above €43 million
Trade unions, business associations, professional bodies, and state-level foundations
Universities, including governing bodies and student councils
Across all these entities, the law establishes the obligation that neither sex may hold less than 40% of decision-making or appointment positions.
Is the Parity Law binding or optional?
It is not a recommendation—the law is binding and sets clear deadlines for compliance:
IBEX 35 companies: by 30 June 2026
Other listed companies: by 30 June 2027
- Public Interest Entities:
- 33% female representation by 2026
- 40% from 2029 onward
- Public administration: by August 2029
- Professional bodies: from 30 June 2029
- Trade unions, state foundations and associations: from 30 June 2028
Recruitment procedures: transparency and objectivity
As discussed in our previous post, one of the cornerstones of the law is the requirement for objective and transparent recruitment processes based on merit and ability, free from gender bias. For companies, this means being required to justify appointment decisions thoroughly, especially where gender balance has not been achieved.
In line with this, the Spanish Companies Act (Ley de Sociedades de Capital) has been amended to introduce an express obligation for listed companies to ensure diversity and gender equality in board appointments. If an entity fails to meet the applicable quota, appointments must be formally justified in writing, explaining why gender balance has not been achieved.
Oversight and enforcement mechanisms
Compliance will be monitored by:
The Spanish Securities Market Commission (CNMV) for listed companies
The Institute for Women and Equal Opportunities and the General Directorate for Diversity
The relevant regional authorities, depending on jurisdiction
Listed companies must disclose gender composition in their annual corporate governance reports, along with measures taken to meet the legal requirements.
Impact on companies and public institutions
This law introduces substantial changes to institutional and corporate governance:
It requires revision of governing documents and appointment procedures
It demands the implementation of effective equality plans to encourage the promotion of women to senior roles
It fosters an organisational culture of parity, which is no longer optional but legally mandated
Spain now positions itself as one of the most ambitious EU countries in terms of gender equality. Unlike other, more flexible approaches, this law is clear, mandatory, and includes oversight mechanisms and legal consequences for non-compliance.
A law with transformative ambition
Organic Law 2/2024 goes far beyond formal compliance with EU regulations. It represents a strategic commitment to gender equality, establishing the principle of parity as a legal obligation across the country’s centres of power and decision-making.
The long-standing “glass ceiling”—frequently criticised but rarely addressed with legal force—now encounters a robust and ambitious legal framework. The real challenge will be to ensure this legal architecture leads to genuine and lasting representation of women in positions of power.
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