Royal Decree 723/2026, which came into force on 5 October 2026, expands the obligations of Spanish employers regarding the information they must provide to employees. Under the new regulations, a standard employment contract may no longer be sufficient to meet all the information requirements before an employee starts work.
The regulations apply to employment relationships lasting more than four weeks. The required information may be provided through the employment contract itself, an annex or additional documents, provided that it is supplied in writing and evidence of its delivery is retained.
What Information Must Employers Provide?
In addition to the basic details included in an employment contract, employers must provide more detailed information on:
- Duties and employment terms: job description, professional classification and justification for fixed-term employment, where applicable.
- Remuneration: basic salary, additional payments, payment frequency and the criteria used to calculate variable remuneration.
- Working hours: work schedules, distribution of working time, overtime, annual leave and possible changes to working arrangements.
- Employment conditions: probationary periods, training, notice periods, termination procedures and the applicable collective bargaining agreement.
- Other obligations: Social Security coverage, equality plans, work-life balance measures, and policies addressing harassment and LGBTI equality, where applicable.
Transparency in the Use of Algorithms
One of the most significant developments is the obligation to inform employees about automated systems or algorithms used to determine or modify their working conditions.
This includes tools used to organise shifts, assign tasks, calculate bonuses, assess performance or make decisions regarding promotions and termination of employment.
Employers must provide a clear and understandable explanation of the criteria used, although this does not necessarily require the disclosure of confidential technical information.
Compliance Deadlines
For new employees, the required information must be provided before the employment relationship begins. Any subsequent changes must be communicated no later than the date on which they take effect.
For employment contracts already in force on 5 October 2026, employees may request any outstanding information, and employers will have 30 working days to provide it.
In conclusion, this reform requires employers to review their employment contracts and recruitment procedures to ensure that employees receive complete and transparent information about their terms and conditions of employment.