As of October 5, workers in Spain have gained enhanced rights to receive written information regarding the actual terms of their employment. This includes details about how their salary is calculated, potential changes to their work schedule, and the existence of any algorithms the company uses to make decisions about tasks, promotions, or even contract termination.
This reform stems from Royal Decree 723/2026, enacted on September 9 and effective October 5, replacing regulations that have been in place since 1998.
The new legislation mandates that companies provide a much more comprehensive account of the critical elements of employment contracts and the primary conditions under which work is performed.
The full text is available in the Royal Decree 723/2026 published in the Official State Gazette.
A Significant Change for Foreign Workers
This measure is particularly pertinent for the growing foreign workforce in Spain. According to a report from CiberCuba, Spain now has over 3.6 million foreign workers enrolled in Social Security, including an increasing number of Cubans.
Written Communication Requirements
Companies are required to provide written information to employees about the essential components of their contract and the main terms of employment execution.
If all this information is clearly outlined in the written contract the employee holds, this obligation is considered fulfilled.
However, if the contract lacks certain details, the company must supply the missing information in writing, either in paper or electronic form, ensuring the document is accessible, storable, and printable, with proof of delivery or receipt retained by the company.
Detailed Salary Information
Companies must thoroughly explain the remuneration structure. Employees should be informed about the base salary, each salary supplement separately, as well as the payment frequency and method.
For variable pay components, the calculation method and the criteria for when these are paid must also be specified. This is crucial for roles where part of the income depends on incentives, targets, commissions, or other variables.
Information on Work Hours and Shifts
The new rule also requires employers to inform about the daily, weekly, and annual work schedule.
Specific mention is needed if work is conducted at night or in shifts. Employees have the right to know how their work hours can be adjusted or shifts altered, including agreements on overtime and its compensation.
Vacation and Notice Periods
Beyond the number of vacation days, companies must outline the process for determining when vacations can be taken.
For jobs with irregular work schedules throughout the year, employees should receive more details about possible workdays and hours. Minimum notice periods before starting or canceling a task should also be included.
Discontinuous Contracts and Trial Periods
For fixed-discontinuous contracts with irregular schedules, companies are required to inform about the active and inactive periods or provide an estimate if exact schedules cannot be set initially.
Should there be a trial period, the company must specify its exact duration and conditions, without implying the creation or extension of trial periods by the decree itself.
The Algorithmic Transparency Mandate
A major aspect of this Royal Decree is its acknowledgment of algorithmic and automated systems in employment conditions. If such systems are used, their existence and operational guidelines must be disclosed to employees.
Decisions covered by the decree include work hours, task assignments, salary determination, professional advancement, work location, and contract termination.
This transparency does not entitle employees to access the complete program code but ensures they are informed about how these systems impact employment decisions.
Equality and Anti-Harassment Policies
Companies must also inform employees about the equality plan and anti-harassment protocols in place. Information on measures to achieve real and effective equality for LGTBI individuals should be included where applicable.
Collective Bargaining Agreements
Employers must provide specific details about applicable collective bargaining agreements, including the agreement code, publication date, validity period, and ultra-activity status.
This is particularly important for foreign workers who rely on collective bargaining for salary, work hours, vacation, and professional classification terms.
Contract Termination Procedures
Information regarding the termination of employment must include formal requirements and notice periods. If exact timelines cannot be given, at least the rules for determining them must be explained.
Social Security and Pension Plans
Another update is the detailed information on social protection linked to employment. Companies must identify the Social Security entity responsible for covering contingencies or benefits and inform about any additional social protection offers.
When pension plans or funds are promoted for employees, they should be identified together with any contributions made.
New Employment and Existing Employees
For new hires, the information detailed in the Royal Decree must be delivered before the employment relationship begins. Additional documents containing required information may supplement the contract.
For workers employed before October 5, the new information obligations apply, allowing them to request any missing information in writing, with companies having 30 business days to comply.
Specifics for Short-Term Contracts and Overseas Assignments
The general information chapter applies to employment lasting more than four weeks, with specific provisions for maritime workers and public employees.
When working abroad for more than four weeks, additional information must be provided, including the work country, duration, salary currency, travel allowances, and repatriation conditions.
Clarifying Misunderstandings
The decree primarily enhances transparency and the right to information. It does not automatically raise salaries, increase vacations, reduce work hours, or provide new benefits for all workers.
Employees already on the job can request detailed information about their salary breakdown, work schedule, overtime compensation, vacation rules, applicable collective agreements, and contract termination procedures.
For Cubans working in Spain, especially those new to sectors like hospitality, construction, transport, agriculture, or auxiliary services, understanding these rules can help clarify the actual terms agreed upon with their employers and the rights now recognized under Spanish law.
Understanding Spain's New Labor Regulations
What prompted the new labor regulations in Spain?
The new regulations were introduced by Royal Decree 723/2026 to enhance transparency and ensure workers are well-informed about their employment conditions, including salary, work hours, and algorithmic decisions.
How does the new law affect foreign workers in Spain?
Foreign workers, like the growing number of Cubans in Spain, will benefit from clear information about employment terms, which is crucial for understanding their rights and conditions in a new labor market.
Are companies required to disclose algorithmic decision-making processes?
Yes, companies must inform workers if algorithms are used in decision-making processes, including details on how these systems operate, without disclosing the complete program code.
What information can existing employees request under the new law?
Employees can request detailed information about their salary, work schedule, overtime, vacation policies, collective agreements, and termination procedures, as well as algorithmic decision-making details.