Greater labor transparency: new obligations to inform employees from October 5, 2026

What you need to know

• On 15 September, Royal Decree 723/2026 was published in the Official State Gazette (BOE), transposing Directive (EU) 2019/1152 on transparent and predictable working conditions.
• The regulation will come into force on 5 October 2026 and repeals Royal Decree 1659/1998. It significantly expands the list of mandatory information that companies must provide to employees and brings forward the deadline for providing it: it must now be provided before the employee starts work.
• New topics have been added, such as algorithms and automated systems, equality plans, harassment protocols, LGBTI measures and termination procedures.
• Employees with a current contract may request any information not included in their contract, and the employer has 30 business days to provide it.

What you need to do

• Review and update employment contract templates to incorporate all the new mandatory information requirements.
• Consult with the IT department to identify any potential use of algorithmic systems or automated decision-making.
• Provide adequate justification for grounds for termination during the probationary period, setting out the criteria and assessment parameters required to pass it.

On 15 September, Royal Decree 723/2026, of 9 September, was published in the Official State Gazette (BOE). The decree transposes Directive (EU) 2019/1152 on transparent and predictable working conditions, repeals Royal Decree 1659/1998, and will enter into force on 5 October 2026.

Scope of application

The regulation applies to all companies and workers covered by Article 1 of the Workers' Statute. Chapter II (general information) applies only to employment relationships lasting more than four weeks.

What has changed?

The obligation to inform workers about the essential elements of their contract already existed under Royal Decree 1659/1998. RD 723/2026 significantly expands the catalogue of mandatory information and, above all, brings forward the deadline by which it must be provided: before the worker begins working (it is no longer sufficient to do so within the two months following the start of the employment relationship).

The elements that already had to be communicated (identity of the parties, start date, workplace, remuneration, working hours, notice period) remain, but with a considerably greater level of detail. Entirely new subject matters have been added, including: algorithms and automated decision-making systems, equality plans, harassment protocols, LGBTI measures, termination procedures, and the Social Security system, among others.

What should the company review?

The company must inform workers in writing about at least 17 aspects of the contract, including:

• Job duties and professional classification. The contract must include the category or professional group of the position. It must also include a summary description of the work that provides sufficient clarity about its content. In fixed-term contracts, the enabling cause, the circumstances justifying it, and its connection to the expected duration must also be identified.
• Salary. The base salary and each salary supplement must be stated separately, along with their frequency and method of payment. For variable components, the method of calculation and the criteria determining their payment must be specified. This requirement is especially relevant in complex compensation structures involving bonuses, commissions, or target-based incentives.
• Working hours. Information must be provided on the duration and distribution of daily, weekly, and annual working hours. In particular, it must be indicated whether night work or shift work applies. The procedures for modifying working hours, agreements on overtime, and vacation entitlements must also be included. If there is irregular distribution of working time, the reference hours and days and the minimum notice periods before the start and cancellation of tasks must be detailed.
• Probationary period. Its specific duration must be stated, whether within the legal limit of six months or a longer period established by collective bargaining agreement. The obligations of both parties to carry out the activities constituting the subject of the probation must also be disclosed.
• Algorithms. If the company uses algorithmic or automated decision-making systems, it must disclose their existence. If, in addition, those systems make decisions regarding working hours, tasks, salaries, promotions, workplace location, or contract termination, their guidelines, criteria, and operating rules must also be communicated.
• Other aspects. Information must be provided regarding training offered by the company. Equality plans, work-life balance policies, and sexual and gender-based harassment protocols. Measures for the real and effective equality of LGBTI persons. The procedure for contract termination, including formal requirements and notice periods. The applicable collective bargaining agreement with identifying data (code, publication date, validity period, and ultra-activity); the company's Social Security system, including voluntary improvements, pension plans, and pension funds.

Can we make references to legal provisions or collective bargaining agreements?

Yes. For certain matters, the company may fulfill this obligation by referring directly to the applicable legal, regulatory, or collective bargaining agreement provisions, without needing to develop each point independently in the contract or information document.

Specifically, this option applies to the following nine matters: base salary and salary supplements (amount, frequency, and method of payment); duration and distribution of ordinary working hours; procedures for modifying working hours and shift changes; overtime and its compensation; vacation and the procedure for scheduling it; duration and conditions of the probationary period; the right to training provided by the company; the procedure for contract termination (formal requirements and notice periods); and the Social Security management collaboration system (mutual insurance company, voluntary improvements, and pension plans).

What about the probationary period?

The Royal Decree requires disclosure of the specific duration of the probationary period and of the obligations of both the company and the worker to carry out the activities constituting its subject matter.

The regulation requires specifying in writing what will be evaluated during said period, and it will be necessary to establish the evaluation elements and/or parameters for its successful completion. This means that, in the event of a failed probationary period, the company must be in a position to substantiate the reasons for the outcome. If it cannot do so, it will be easier for the worker to challenge a withdrawal that is unconnected to what was agreed. The limits that already existed (non-discrimination, fundamental rights, and other specially protected circumstances) remain in force.

Information on modifications

The company must inform in writing about any modification to the elements and conditions of the contract. The only exception is when the information derives from a reference to legal, regulatory, or collective bargaining agreement provisions that have themselves been amended.

What about workers posted abroad?

For those providing services outside Spain, the company must provide information on: the country of destination, duration, currency of payment, remuneration, expense allowances and per diems, and repatriation conditions. For postings within the EU, the company must additionally inform about remuneration under the host country's legislation, reimbursement of travel, accommodation, and subsistence expenses, and provide a link to the official web portal of the destination country. This obligation does not apply if the posting is shorter than four consecutive weeks.

How and when must the information be provided?

Starting 5 October, the information must be included in employment contracts or, in any case, provided in paper or electronic format. The information must be accessible to the worker, capable of being stored and printed, and the company must retain proof of delivery.

General information must be provided prior to the start of the employment relationship; additional information for workers posted abroad must be provided before departure; and modifications to conditions must be communicated as soon as possible and no later than the day the change takes effect.

What happens with contracts already in force?

Workers with existing contracts may request any information not already included in their contract. The company will have 30 business days from the date of the request to provide it. In addition, any modification of conditions occurring after the entry into force must be communicated as soon as possible and no later than the day the change takes effect.

Recommendations:

• Review and update employment contract templates to incorporate all new mandatory information elements.
• Coordinate with the IT department to identify the potential use of algorithmic or automated decision-making systems.
• Companies must adequately justify the reasons for termination during the probationary period. A mere notification stating that the worker has not satisfactorily completed the probationary period will no longer be sufficient.

Author: Cristina Grande, Head of Employment and Data Protection team.

Key contacts: Cristina Grande, Head of Employment and Data Protection team; María Baixauli, Employment and Data Protection Associate; Elena González, Employment and Data Protection Associate; and Miriam Fernández, Work Experience Student.