New information requirements regarding working conditions

New information requirements regarding working conditions

Key points of Royal Decree 723 2026 for companies

On 15 September 2026, Royal Decree 723/2026 of 9 September was published in the Spanish Official State Gazette. It expands employers’ information obligations concerning the essential terms of employment contracts and the main conditions under which services are provided.

This regulation will enter into force on 5 October 2026. It partially transposes Directive (EU) 2019/1152 on transparent and predictable working conditions and fully replaces Royal Decree 1659/1998.

Who does it apply to?

In general terms, the new obligations will apply, among others, to employers and employees falling within the scope of the Spanish Workers’ Statute, provided that the employment relationship lasts longer than four weeks.

Information to be provided before employment begins

The employer must provide sufficient written information about the essential conditions of the employment relationship before the employee begins to provide services.

This obligation will be deemed fulfilled if all the required information is included in the contract provided to the employee. If the contract only includes part of the required information, one or more supplementary documents must be provided.

The information may be provided on paper or in electronic format, provided that it remains accessible, can be stored and printed, and the employer retains evidence that it was sent or received.

Minimum information requirements

The information to be provided includes the following:

– Identity of the parties and the start date of the employment relationship.

– Expected duration and specific grounds for temporary employment.

– Usual place of work and, in the case of remote working, the work centre to which the employee is assigned.

– Duties, job category or occupational group, together with an adequate description of the role.

– Base salary and salary supplements, stated separately.

– Calculation method and eligibility criteria for variable remuneration.

– Duration and distribution of the daily, weekly and annual working time, including shift work and night work.

– Overtime, annual leave, and the procedures for determining when leave may be taken.

– Duration and conditions of the probationary period and entitlement to training.

– Procedure for terminating the employment contract and applicable notice periods.

– Applicable collective agreement, including its official code, publication details, period of validity, and any continued application after its expiry.

– Mutual insurance provider or other collaborating entity, voluntary benefit enhancements, and pension plans.

– Grounds and procedures for modifying duties, occupational classification, salary, or working time.

For certain matters, the information may refer to the applicable legislation or collective agreement. Any such reference must be sufficiently precise to clearly identify the corresponding provisions.

Variable remuneration, working time, and permanent-discontinuous employment contracts

One of the most significant changes concerns variable remuneration. Generic references to bonuses, incentives, or commissions may be insufficient, as the calculation method and the criteria governing entitlement to such remuneration must be stated.

Where working time is distributed irregularly, the employer must provide information on the system used to determine that distribution, the relevant days and times, and the applicable minimum notice periods for the commencement or cancellation of a work assignment.

Permanent-discontinuous employment contracts (contratos fijos discontinuos) must specify the periods of activity and inactivity or, where they cannot be determined in advance, provide an estimate of those periods, without prejudice to their subsequent specification in the relevant call-up notice.

Information on algorithms and artificial intelligence

The Royal Decree expressly introduces the obligation to provide information on the existence of algorithmic or automated systems used to make decisions concerning:

– The duration and distribution of working time.

– The assignment of tasks.

– The determination of remuneration.

– Career advancement.

– The place of work.

– The termination of the employment contract.

This information must include the guidelines, criteria, and operating rules of these systems. This provision must be given particular consideration where artificial intelligence tools are used in HR management processes, performance assessments, shift planning, the assignment of targets, or employment-related decision-making.

Equality, work-life balance, harassment, and LGBTI measures

The information provided must also identify:

– The applicable equality plan.

– The employer’s work-life balance policy, where it goes beyond the minimum statutory requirements.

– The protocol for preventing and addressing sexual harassment and harassment on grounds of sex.

– The measures and resources aimed at achieving genuine and effective equality for LGBTI people, where the employer has such measures in place.

Working abroad

Where an employee is required to work abroad for more than four consecutive weeks, the employer must provide, before departure, information on the destination country, the expected duration, the currency in which remuneration will be paid, the remuneration and allowances connected with the posting, and the repatriation arrangements.

For temporary postings to another Member State of the European Union or the European Economic Area, employers must also provide information on the remuneration due under the legislation of the host country, the arrangements for reimbursing expenses, and a link to the official national website of the host country.

Existing employment contracts when the Royal Decree enters into force

Employers are not required to automatically provide the new information document to all existing employees.

However, employees whose employment relationship remains in force on 5 October 2026 may request any required information not already available to them. The employer must provide this information within 30 working days of receiving the request..

Any changes to working conditions that take effect after the Royal Decree enters into force must be communicated as soon as possible and, at the latest, on the date on which they become effective.

Recommendations for employers

1. Prepare a supplementary information document for new employees.

2. Adapt clauses governing bonuses, commissions, and other variable remuneration arrangements.

3. Review the contractual provisions governing the irregular distribution of working time and permanent-discontinuous employment contracts.

4. Identify the algorithmic or artificial intelligence systems used in HR management.

5. Prepare specific templates for international postings.

6. Implement a procedure for handling information requests from employees whose contracts are already in force.

7. Establish systems that make it possible to demonstrate that the information has been provided and received.

The Spanish Public Employment Service must publish an official information document template. However, the enforceability of the new obligations is not conditional on the publication of this template. The obligations will apply from the date on which the Royal Decree enters into force.

How Bové Montero can help

Bové Montero can support companies in adapting to this new regulation through a comprehensive review of their contractual documentation and onboarding and HR management processes.

Our Employment Law Department can provide assistance in the following areas:

– Reviewing contract templates, annexes, and information documents used by the company.

– Preparing information documents tailored to each type of employment contract and working arrangement.

– Reviewing clauses governing variable remuneration, bonuses, commissions, and targets.

– Adapting documentation concerning working time, shifts, irregular distribution of working time, and permanent-discontinuous employment.

– Preparing letters and annexes for international postings and coordinating the related employment, social security, and payroll implications.

– Designing internal protocols for handling information requests and properly documenting the provision of the requested information.

An early review will make it possible to identify gaps in the documentation currently in use and ensure that new hires and contractual changes are properly managed from 5 October 2026.