Royal Decree 723/2026, of September 9 (“RD 723/2026”), published in the Official Gazette of the Spanish State ("BOE") on September 15, 2026, transposes EU Directive 2019/1152 on transparent and predictable working conditions (the “Directive”), repeals Royal Decree 1659/1998 of July 24 ("RD 1659/1998") in its entirety, and implements article 8(5) of the Workers Statute (WS) regarding information on the essential elements of the employment contract.
The new regulation applies broadly to employers and employees within its statutory scope, and covers specific groups, including employees with special employment relationships, public-sector employees, and fishermen and seafarers. The new rules have significantly expanded on what information must employers provide employees. The essential information obligation continues to apply to employment relationships lasting over four weeks.
This Legal Flash will identify the main developments introduced by RD 723/2026, highlighting those that will have the greatest impact on employers: salary breakdown and variable pay, information on algorithmic systems, justification of probationary periods, more detailed working time arrangements and shorter deadlines for providing the required information.
Aspectos Clave
- Employers must provide employees all the essential information before starting the employment relationship: this requires preconfigured templates and agile processes for urgent hires.
- Breakdown of salary: base salary and each salary supplement must be set out separately, with the method and criteria for calculating variable components.
- Individual algorithmic transparency: information on the rules for systems that make decisions on working conditions, tasks, salary and dismissal.
- Managing modifications: provide advance notice of the flexibility framework and written communication of each change before it takes effect;
- Employers have 30 business days to provide information to current employees who require it.
- Non-compliance activates the Labor Infringements and Sanctions Act disciplinary procedure.
- The regulation enters into force on October 5, 2026.
For more information, please contact our specialists through the Knowledge and Innovation Area.