ACT inspections for 2026

What is happening?

The Authority for Working Conditions (“ACT”) announced a nationwide inspection campaign for 2026, with a focus on three key areas:

• Inappropriate contractual relationships
• Private security
• Equal pay for women and men

Below we summarize the issues involved and how companies can ensure compliance with their obligations in these matters.

I. Incorrect contractual relationships

A nationwide inspection campaign to assess the regularity of contractual relationships will take place during the first quarter of 2026.

This initiative aims to verify all forms of false service provision, undeclared or underdeclared work, and disguised arrangements such as false internships or volunteering. The investigation will also examine cases where the service provider operates as a sole trader or through a single-owner company. ACT will also investigate fixed-term, short-term and temporary work contracts to determine whether they are valid.

How to prepare?

• Review all written contracts with fixed-term employees, service providers, temporary work agencies, interns, among other arrangements, to ensure their formal compliance.
• Assess non-employment contracts for indicators of legal subordination. These indicators include work schedules set by the employer, fixed places of work, use of company equipment, subjection to orders and instructions, integration into the organizational structure, and financial dependence.
• Analyze specific cases where the company has already been notified to pay social security contributions as a contracting entity.
• Verify that all employees are registered with the Social Security Office and ensure that contributions are being declared and paid correctly.

Entering into contracts that obscure an employment relationship constitutes a very serious administrative offense. Depending on turnover and the nature of noncompliance, fines may reach up to €122,400 if multiple employees are affected.

Also, the reclassification of contractual relationships will require companies to pay any amounts owed to affected employees in equal circumstances. These payments may include vacation bonuses, Christmas bonuses, and any other specific entitlements, which employees can claim within one year from the day following the termination of their employment contracts.

II. Private security

In the first quarter of this year, a nationwide inspection campaign will focus on employers carrying out private security activities.

The ACT will prioritize verifying compliance with legal obligations in this sector, including the organization of working hours, remuneration, and any other benefits, considering the collective bargaining agreements (“CBA”) applicable to the sector.

How to prepare?

• Verify compliance with general employment obligations and, if applicable, with those specifically established in the applicable CBA.
• Ensure the work schedule, vacation schedule and other mandatory documents are displayed in a location clearly visible to employees.
• Confirm that all remuneration, including bonuses and other payments specified in the applicable CBA, is paid in full and on time.
• Consult the ACT’s guide for private security sector employees available on its website.

III. Equal pay for men and women

The ongoing inspection campaign, initiated in 2025, will continue through 2026, encompassing approximately 4,000 employers.

The ACT has been notifying employers across all sectors with more than 50 employees and a gender pay gap (“GPG”) exceeding 5%. Employers are required to submit and implement a GPG assessment plan and, if applicable, an action plan designed to eliminate identified pay inequalities. The 12-month implementation period for the GPG assessment plan is currently underway, after which employers must report the results to the ACT.

How to prepare?

• Identify all job roles within the company and assess their functional content using consistent and comparable criteria to ensure that equal work or work of equal value is remunerated equally.
• Develop an action plan to eliminate any unjustified remuneration inequalities that are detected.
• Create or review the remuneration policy to ensure clarity and transparency. The policy should define existing job categories, the criteria for accessing these categories, and the requirements for career progression, which must be based on clear and objective performance assessment systems applicable equally to men and women.
• Review remuneration and career progression structures.
• Review the information contained in recruitment and selection processes to guarantee adherence to the principle of equal pay for men and women.

Unjustified differences in remuneration are presumed discriminatory. Employees may claim employment credits within one year following the day after the termination of their employment contracts. Breaching the prohibition of discrimination principle constitutes a very serious administrative offense. Depending on turnover and the nature of noncompliance, fines can reach €122,400 if multiple employees are affected.

Conclusion

We encourage companies to carry out thorough internal compliance audits across these three critical areas. Proactively identifying and remedying breaches before any ACT inspection will ensure readiness and mitigate risks.