The Official State Gazette (BOE) has officially published the long-awaited Royal Decree 723/2026, transposing Directive (UE) 2019/1152 on transparent and predictable working conditions into Spanish law.
Here is an executive summary highlighting the 5 core aspects that companies, HR departments, and employers operating in Spain must implement to ensure full compliance.
1. Effective Date and Enforcement Deadline
All obligations set forth under Royal Decree 723/2026 will become fully mandatory and enforceable as of October 5, 2026.
2. Expanded Scope of Mandatory Written Disclosures
Employer disclosure requirements have been significantly broadened. Generic references in employment contracts—such as “salary as per collective bargaining agreement”, “working hours as per agreement”, or “probationary period per collective agreement”—will no longer be compliant. Employers must provide detailed written information regarding:
- Parties and Contract Duration: Identity of the employer and employee, start date, and, for temporary contracts, the expected end date or duration.
- Workplace Location: Primary work center, multi-site assignments, remote work arrangements, or mobility expectations.
- Job Description and Category: Professional category or group, along with a clear description of the specific role and duties.
- Remuneration and Calculation Criteria: Base salary, financial allowances, payment frequency, and payment methods. The specific calculation criteria for variable compensation must also be detailed.
- Working Hours and Shifts: Daily, weekly, and annual schedules, night work or shift structures, and formal procedures for modifying schedules or shifts.
- Overtime: Regulations on overtime hours and their corresponding pay structure.
- Annual Leave: Paid vacation entitlement and the formal process for scheduling time off.
- Irregular Work Distribution: Days and hours when services may be requested, alongside mandatory minimum advance notice periods.
- Discontinuous Fixed-Term Contracts (Fijos-Discontinuos): Estimated periods of activity and inactivity.
- Probationary Period: Specific duration and the exact skills, targets, or tasks subject to evaluation.
- Employee Training Rights: Entitlements to company-provided training programs.
- Temporary Employment Agencies (ETTs): Identity of the user company and the rationale for the temporary assignment.
- AI and Algorithmic Decision-Making Systems: Parameters, criteria, and operational rules of automated or algorithmic systems whenever they influence working conditions, task assignment, pay, career progression, workplace location, or contract termination.
- Equality Plans and Workplace Protocols: Applicable Equality Plan, work-life balance policies, and harassment prevention protocols.
- LGTBI Equality Measures: Specific measures and resources established within the company to guarantee real equality for LGTBI personnel, where implemented.
- Termination Procedures: Formal requirements, notice periods, and legal procedures governing contract termination.
- Collective Bargaining Agreement (CBA): Details of the applicable CBA, including code, publication date, validity period, and ultraactivity status.
- Social Security and Pension Schemes: Social Security coverage details, collaborating entities, voluntary benefit improvements, and company-sponsored pension plans.
- Modification of Substantial Terms: Legal grounds and procedures required to modify essential working conditions.
3. Required Timelines for Information Delivery
As a general rule, all required documentation must be delivered prior to the start of the employment relationship.
If all required elements are fully incorporated into the written employment contract, no separate document is needed. However, if the contract contains only partial details, the remaining information must be provided in writing before work commences.
Special Timing Provisions:
- Assignments Abroad: Where regular services are to be performed abroad, supplementary documentation must be provided prior to the employee’s departure.
- Modifications to Conditions: Any subsequent change to employment conditions must be communicated in writing as soon as possible, and no later than the effective date of the change.
4. Treatment of Existing Employment Contracts
For employment relationships established prior to October 5, 2026, the transitional provisions establish the following rules:
- No Ex-Officio Obligation: Companies are not required to proactively re-issue contracts or provide updated information to existing staff across the board. Existing employment contracts remain valid.
- Upon Written Employee Request: If an active employee formally requests this information in writing, the employer is legally obligated to provide the full documentation within 30 business days from receipt of the request.
5. Authorized Formats and Formal Delivery Requirements
- Delivery Formats: Information may be delivered in physical paper form or electronically, provided the format remains accessible to the employee, can be saved and printed, and the company retains verifiable proof of receipt.
- Official Templates: The State Public Employment Service (SEPE) is expected to publish standardized templates to facilitate compliance.
Is Your Organization Compliant with RD 723/2026?
This regulation enforces higher standards of contractual transparency across all sectors in Spain. Moving toward October 2026, employers must update their onboarding workflows, employment contract templates, and internal disclosures.
Need legal guidance on updating your employment documentation in Spain? Our employment law team can review your current contracts and help align your practices with the new Royal Decree 723/2026.
