Royal Decree 723/2026 extends companies’ obligations to provide information on working conditions

It has just to be published in the Official State Gazette (BOE) Royal Decree 723/2026 of 9 September, which incorporates into Spanish law part of the European legislation on transparent and predictable working conditions, and which It shall enter into force twenty days after its publication in the Official State Gazette (BOE).

The new regulation replaces the previous Royal Decree 1659/1998 and expands on the information that employers must provide to employees regarding the essential elements of their employment contract and the main conditions governing the performance of their work. Its aim is to ensure that employees are made clearly aware, in writing and from the outset of the employment relationship, of the conditions that apply to them.

The new regulations require companies to provide a greater level of detail in the information given to employees. This obligation shall be deemed to have been met when the employment contract itself includes all the required information. Therefore, where the written contract contains only part of this information, the company must provide the remaining details in writing within the specified time limits and in accordance with the established terms.

To which employment relationships does it apply?

In general, Royal Decree 723/2026 of 9 September applies to companies and workers covered by the scope of the Workers’ Statute. However, the general disclosure obligations set out in Chapter II they apply only to employment relationships lasting longer than four weeks.

Furthermore, the legislation sets out specific provisions for certain groups, such as fishermen and seafarers. It also provides for its application to special types of employment relationships and to civil servants, in these cases in accordance with the specific provisions set out in the relevant regulations.

What specific information will companies be required to provide?

The information to be provided includes

• the identity of the parties,
• the start date of the employment relationship,
• the duration specified in fixed-term contracts,
• the workplace,
• the nature of the work,
• the category or occupational group
• and pay conditions.

The amount of the basic salary and each salary supplement

With regard to remuneration, The amount of the basic salary and each salary supplement must be specified separately, their frequency and method of payment. In the case of variable payments, details must also be provided regarding the method of calculation and the criteria used to determine their payment.

Working hours

Furthermore, one of the areas in which the new regulations require a greater level of detail is that relating to working time. Companies will therefore be required to provide information on the duration and distribution of the standard daily, weekly and annual working hours, as well as to indicate whether these are carried out wholly or partly through night work or shift work.

Procedures must also be established for altering the length or distribution of the working day and, where applicable, changes to shifts, agreements relating to overtime and its remuneration, as well as the duration of holidays and the procedure for setting their dates.

It should be noted that, in cases where working hours are distributed irregularly, the information must also include details of the system used to determine the working hours, the reference hours and days on which the company may require services to be provided, and the applicable minimum notice periods.

In the case of permanent seasonal workers, the periods of activity and inactivity must be recorded or, where it is not yet possible to specify these, an estimate of both must be provided.

Furthermore, the information must include the duration and terms of any probationary period, where such a period has been agreed, as well as the right to training provided by the company.

Finally, in the case of workers supplied by a temporary employment agency, the agency must provide them with the name of the user company and the reason justifying the conclusion of each supply contract.

Information on algorithms and automated systems.

In addition to the above reporting obligations, Royal Decree 723/2026 introduces a specific new provision for those companies that use algorithmic or automated systems in human resources management.

In such cases, the company must disclose the existence of such systems where they play a part in setting, altering or modifying working conditions. The information must cover the guidelines, criteria and operating rules of these systems when they are used, amongst other matters,

• for the allocation of tasks,
• the organisation of the event,
• the setting of wages,
• career progression,
• determining the place of work
• or the termination of the employment relationship.

Consequently, organisations using this type of tool should review which systems they use and what information they are required to provide to their employees.

Obligation to provide information on internal policies and procedures

Alongside information relating to working conditions and the use of automated systems, the new regulation also introduces disclosure requirements concerning certain internal company policies and procedures.

Consequently, certain aspects relating to the company’s internal organisation must be disclosed, such as the existence of the equality plan, the work-life balance policy (where one exists), the protocol for dealing with sexual harassment or harassment on the grounds of sex and, where applicable, the measures put in place to ensure genuine and effective equality for LGBTI people.

The procedure applicable to the termination of the contract

Furthermore, information must be provided on the procedure applicable to the termination of the contract, including the formal requirements and notice periods to be observed by both the employer and the employee. Should it not be possible to specify these periods at that time, the method by which they will be determined must be set out.

The applicable collective agreement or agreements must also be identified, specifying, amongst other details, their code, date of publication, period of validity and, where applicable, whether they remain in force after expiry.

The information must also cover the company’s system for cooperation with the Social Security scheme, including the managing or partner organisation chosen to provide cover for contingencies and benefits, any voluntary enhancements to social protection, and any pension schemes or funds set up for the benefit of employees.

Finally, the company must provide information on the circumstances in which certain essential elements of the employment relationship may be amended and on the procedure to be followed in order to make such amendments.

It should be borne in mind that, for certain matters, the legislation allows information to be provided by means of a reference to the applicable statutory provisions, regulations or collective agreements, provided that such a reference enables the worker to effectively ascertain the relevant conditions.

Circumstances in which services are provided abroad.

Where an employee is required to carry out their duties abroad on a regular basis, the company must complete the general information specified above, together with certain additional details relating to that assignment, before the employee’s departure abroad.

Specifically, they must provide details of the country or countries in which the services will be provided, the expected duration of the work abroad, the currency in which the salary will be paid, and any remuneration or compensation linked to the posting, including, amongst other things, travel expenses, daily allowances or benefits associated with the provision of services outside Spain.

It must also be stated whether the worker is due to be repatriated and, if so, the conditions under which this will take place.

Furthermore, where the posting takes place to another Member State of the European Union or to a State within the European Economic Area in the context of the cross-border provision of services, the company must provide additional information on the remuneration applicable under the host State’s regulations, the reimbursement of travel, accommodation and subsistence expenses and, where applicable, specific allowances for the posting. A link to the destination country’s official website on the posting of workers must also be provided.

However, some of these obligations may be fulfilled by making a specific reference to the applicable legislation or collective agreement. Finally, these additional requirements shall not apply where each period of work abroad does not exceed four consecutive weeks.

When and how should the information be submitted?

Generally speaking, The information must be provided in writing before the employment relationship begins. It may be provided in paper form or electronically, provided that it is accessible to the employee, can be stored and printed, and the company retains proof of its transmission or receipt.

In any event, the information must be provided in such a way as to ensure that it is properly understood and accessible, with particular attention paid to workers with disabilities or with limitations that may hinder their understanding.

If any of the details previously provided are subsequently amended, the company must notify the other party of such a change in writing as soon as possible and, in any event, no later than the day on which the amendment takes effect. Conversely, it will not be necessary to provide written notice of amendments arising solely from changes to the statutory or regulatory provisions or to the collective agreements to which the information previously provided referred.

Companies must therefore pay attention not only to the documentation provided at the time of recruitment, but also to the way in which they communicate and document any subsequent changes to working hours, pay, duties or any other condition falling within the scope of the information required.

What happens to existing employment relationships?

The entry into force of the Royal Decree does not mean that companies have to immediately redraft all their staff’s contractual documentation. However, employees whose employment relationship is already in force may request the information provided for in the new regulation. Therefore, where such information is not already in the employee’s possession, the company must provide it to them within 30 working days of receipt of the application.

However, any changes that occur after the entry into force must be notified in accordance with the new deadlines set out in the Royal Decree referred to in the previous paragraph.

Specialities for anglers and seafarers.

The Royal Decree establishes a specific scheme for fishermen and seafarers who work on board vessels flying the Spanish flag or subject to Spanish jurisdiction, regardless of the duration of their contract.

In both cases, The contract must always be drawn up in writing and include specific information about the vessel and, where applicable,

• the planned trip,
• job role or professional category,
• remuneration,
• working hours and breaks,
• health and social security cover,
• the right to repatriation,
• the conditions for termination
• and the applicable collective agreement.

Furthermore, the shipowner must provide the information before the employment relationship begins, ensure that it is accessible and comprehensible, and notify the employee in writing of any subsequent changes to the terms and conditions of employment. In the case of fishermen, a signed copy of the contract must also be provided and must be kept on board, subject to certain exceptions for smaller vessels.

What should companies be reviewing at this stage?

In view of the new obligations, it would be advisable for companies to review their contract templates and information annexes and, in general, its recruitment and staff management processes, with a view to ensuring that information is provided in a comprehensive, accessible and up-to-date manner throughout the employment relationship.

Particular attention should be paid to documentation relating to working hours, variable pay, the probationary period, training, termination procedures and the applicable collective agreement, as well as to the identification of any algorithmic or automated tools used in staff management.

They should also review how they communicate and raise awareness of certain internal policies and procedures, such as the equality plan, the work-life balance policy, the protocol on sexual harassment and gender-based harassment and, where applicable, the measures adopted to ensure real and effective equality for LGBTI people.

It will also be necessary to check how subsequent changes to working conditions are documented and communicated.

Finally, the Ministry of Labour and the Social Economy, through the SEPE, it must make the following available to businesses and workers a template for an information document within a maximum of twenty days since the publication of the Royal Decree. The temporary unavailability of this model will not prevent, however, the new obligations will become enforceable once the regulation comes into force.

More on working conditions and compliance with labour legislation

• Royal Decree 1026/2024 on measures to promote equality and non-discrimination for LGBTI people in the workplace
• Reform of the termination of the employment contract after Permanent Disability
• The impact of Artificial Intelligence on employment relations: grounds for disciplinary action?

This article is for information purposes only and does not constitute legal advice. A case-by-case assessment is required to evaluate a specific case.