Royal Decree 723/2026, dated September 9, will take effect on October 5, 2026, partially transposing EU Directive 2019/1152 on transparent and predictable working conditions in the European Union into Spanish law. This decree fully replaces Royal Decree 1659/1998 and substantially updates the information employers must provide to employees about their employment relationship.

Purpose

The decree responds to the EU mandate to strengthen transparency and predictability in working conditions, in line with Principle 7 of the European Pillar of Social Rights, which recognizes every worker’s right to be informed in writing, from the start of the employment relationship, of the essential rights and obligations involved.

The decree doesn’t build a new system from scratch — it expands and modernizes the existing list of information employers were already required to disclose, adding elements the previous regulation didn’t cover, particularly those related to the digitalization of people management.

What Changes for Employers

Once the decree takes effect, the employment contract — or the accompanying information document — must include, in addition to the usual details, several newly required items:

  1. Identity of the parties.
  2. Start date and, if temporary, end date or expected duration.
  3. Registered office and workplace(s) (including remote or itinerant work).
  4. Description of the work to be performed and, if temporary, the justification for the fixed-term contract.
  5. Professional category or group, including a job description.
  6. Salary: base amount and any supplements listed separately, payment frequency, payment method, and calculation method for variable pay.
  7. Working hours: daily, weekly, and annual duration and distribution, shift patterns, night work, overtime, vacation entitlement, and rules for irregular scheduling where applicable.

For intermittent permanent contracts, the periods of activity and inactivity, or an estimate thereof, without prejudice to their being specified at the time the employee is called back to work.

  1. Duration and terms of the probationary period.
  2. Right to employer-provided training.
  3. For temporary staffing agencies: the identity of the user company and the reason for the assignment.
  4. The existence of algorithmic or automated decision-making systems: the mechanism the employer uses to decide, wholly or partly, on matters such as working hours, tasks, pay, career progression, workplace, or contract termination — employees must be informed of the existence of such systems and how they work.
  5. The existence and identification of the company’s Equality Plan, along with its work-life balance policy and sexual harassment protocol.
  6. The existence of measures for the real equality of LGBTI employees.
  7. Termination procedure and notice periods.
  8. Applicable collective bargaining agreement(s) (code, official gazette reference, term of validity).
  9. Social Security contribution arrangements and any voluntary benefits.
  10. Procedures for modifying the items listed in d), e), f), and g).

When an employee is required to work abroad for more than four consecutive weeks, the above information must be supplemented with:

  • The country or countries where the work will be performed.
  • The duration of the work is to be carried out abroad.
  • The currency in which the salary will be paid.
  • Cash or in-kind compensation, as well as reimbursement for expenses, travel costs, per diems, and any benefits associated with working abroad.
  • Whether repatriation is planned, and under what conditions.

These requirements apply to employment relationships lasting longer than four weeks, and — with some adjustments — also extend to contracts for fishermen and seafarers, who are subject to their own minimum-content regime under the decree.

Deadlines and Transitional Arrangements

The information must be provided in writing — on paper or in an accessible electronic format — before the employment relationship begins. Any subsequent changes must be communicated no later than the day they take effect.

Existing employment relationships are also covered by the new rules: if an employee requests it, the employer has thirty business days to provide the updated information.

The State Public Employment Service (SEPE) is also expected to publish an official reference template for the information document within twenty days of the decree’s publication.

Our recommendation

At addwill, we recommend that employers review their contract templates before October 5 to confirm they include all the required elements, avoiding potential issues with the Labor Inspectorate or claims from employees.

Our employment law team is available to support clients through this review.

Author:

Laura Neira

Senior Manager, Labor Department, addwill