Employment Contracts: What Companies Need to Review in Light of the New Information Requirements

Royal Decree 723/2026 of 9 September, published in Spain’s Official State Gazette (BOE) on 15 September, updates the rules governing the provision of information on the essential terms and conditions of employment and replaces the framework previously established by Royal Decree 1659/1998.

The reform gives effect to employees’ right to receive clear information in advance about the conditions under which they will work, in line with Directive (EU) 2019/1152 on transparent and predictable working conditions.

For companies, the change is not simply a matter of adding more pages to employment contracts. The real challenge will be ensuring that the information provided in writing reflects the actual terms and conditions of employment, particularly in areas such as variable remuneration, working hours, duties, probationary periods and the use of automated systems.

When does the new employment information framework come into force?

Royal Decree 723/2026 will enter into force on 5 October 2026, twenty days after its publication in the BOE.

From that date, companies will need to adapt the documentation they use to inform new employees about their terms and conditions of employment.

The information may be incorporated directly into the employment contract or provided in one or more supplementary documents. The legislation permits paper or electronic formats, provided that the information is accessible, can be stored and printed, and the company can demonstrate that it has been transmitted or received.

It will therefore not necessarily be necessary to turn employment contracts into considerably longer documents if certain information is already correctly set out in other documents provided to employees.

What information must companies provide?

The Royal Decree expands and specifies the information that must be communicated in writing. The main areas that companies should review are outlined below.

1. Duties, job position and grounds for fixed-term employment

The documentation must identify the duties the employee will perform and their professional classification.

In the case of fixed-term contracts, it must also identify the grounds justifying the fixed-term nature of the contract, the specific circumstances supporting those grounds and their connection with the anticipated duration of the contract.

This makes it particularly important to ensure that contractual documentation does not merely reproduce a generic job title when the duties actually performed are more specific.

2. Fixed salary and variable remuneration

Remuneration is one of the areas in which the new legislation introduces greater precision. The information provided must distinguish between:

• Basic salary.

• Each individual salary supplement.

• The frequency of payment.

• The method of payment.

• The method used to calculate variable remuneration.

• The criteria determining entitlement to such remuneration.

Consequently, where a bonus, incentive, commission or other variable remuneration scheme exists, merely stating that the scheme exists will not necessarily be sufficient.

Companies must review whether the documentation provided enables employees to understand how their variable remuneration is calculated and which criteria determine their entitlement to it. This may be particularly relevant for sales positions, management roles and positions linked to performance targets.

3. Working hours, schedules and irregular distribution of working time

The information requirements relating to working time have also been expanded. Employees must be informed of the duration of their working time and its daily, weekly and annual distribution, as well as any night work or shift work, where applicable.

The documentation must also set out the applicable procedures for changing working schedules or shifts, overtime and the arrangements for compensating or remunerating it, and the duration of annual leave and how it is determined.

Where an irregular distribution of working time applies, the company must also specify the system used to determine that distribution, the reference hours and days, and the minimum notice periods.

Companies should pay particular attention to this area where their actual working arrangements do not correspond exactly to what is currently stated in their employment contracts.

4. Probationary periods: More information, but no new grounds for termination

Probationary periods are another aspect that companies will need to review.

Employers must provide information on the specific duration and conditions of the probationary period, including the obligations of both parties in relation to the activities or experience being assessed during that period.

This requirement must be distinguished from the rules governing termination during a probationary period.

The new Royal Decree strengthens transparency regarding the purpose and duration of probationary periods, but it does not turn an unsuccessful probationary period into a dismissal that must necessarily be justified as such. Existing statutory and case-law restrictions continue to apply, including those arising from the prohibition of discrimination and the protection of fundamental rights.

Rather than automatically amending all probationary period clauses, companies should therefore verify that their duration and conditions are correctly defined and consistent with the applicable collective bargaining agreement and Article 14 of the Spanish Workers’ Statute.

5. Training and other terms and conditions of employment

The information provided must also include, in accordance with the requirements established by the legislation, matters such as the right to training provided by the employer, the applicable procedure for terminating the employment relationship and the relevant notice periods.

References to the applicable collective bargaining agreement must also be reviewed, together with certain conditions relating to changes in duties, professional classification, salary or working time.

6. Equality, harassment and LGBTI measures

The new framework also incorporates information relating to the policies and measures implemented by the company concerning:

• Equality.

• Prevention of and protection against sexual harassment and harassment on grounds of sex.

• Measures and resources available to LGBTI employees.

• Other mechanisms for protecting or managing the employment relationship as required by law.

This makes it advisable to review not only employment contracts but also the internal documents and policies to which they refer, to prevent employees from receiving outdated information or information that does not reflect the measures actually implemented by the company.

One of the most significant developments: Algorithmic systems

The Royal Decree expressly introduces information requirements concerning algorithmic or automated decision-making systems where they may affect certain terms and conditions of employment.

Where these systems are involved in decisions concerning, among other matters, duties, working time, salary, promotion, workplace location or termination of employment, employees must be informed of their existence and of the principles, criteria and rules governing their operation, in accordance with the legislation.

This has an important practical consequence: companies using automated tools in their human resources processes should first identify which decisions may be influenced by these systems and what information must be provided to employees.

This does not, in itself, mean that companies must disclose a tool’s source code. The obligation concerns transparency about the existence and operation of the system, to the extent required by the Royal Decree.

This development should therefore not be assessed solely by the Human Resources department. In certain cases, the review will also need to be coordinated with compliance, data protection, technology or legal advisory teams.

Is it necessary to replace all existing employment contracts?

No. This is one of the most important practical considerations. The entry into force of Royal Decree 723/2026 does not require companies to automatically replace all existing employment contracts with new templates.

For employment relationships already in force, where an employee requests information that they do not already possess, the company will have 30 working days from receipt of the request to provide it.

Furthermore, where changes are made to any of the terms and conditions subject to the information requirements, those changes must be communicated in writing as soon as possible and, at the latest, on the date on which they take effect.

The most appropriate approach therefore appears to be not an indiscriminate update of every employment contract, but an initial documentation audit to identify missing information, outdated provisions and supplementary documents that could be used.

When must new employees receive the information?

The general rule is clear: the information must be provided before the employment relationship begins.

There is no general requirement for all the information to be provided before the employment contract is signed. Rather, it must be provided before the employee starts work.

The general information framework applies to employment relationships lasting more than four weeks, without prejudice to the specific provisions established by the Royal Decree for certain categories of workers and forms of employment.

Must all the information be included in the employment contract?

No. Companies may fulfil their obligations through the employment contract and supplementary documentation, provided that the information is supplied in writing and meets the requirements concerning accessibility, retention and printability established by the legislation.

This allows companies to maintain a more flexible documentation structure. For example, certain terms and conditions may be set out in an employment information annex, provided that it is properly delivered and there is a record of its delivery.

The key is to ensure that, taken together, the employee receives all the required information and the company can demonstrate that it has provided it.

What about the official templates?

The Royal Decree provides for the Spanish State Public Employment Service (SEPE) to make available to companies an information template containing the information required by the legislation, together with specific contract templates for certain employment contracts in the fishing sector and for seafarers.

However, the fact that these templates have not yet been published does not suspend the statutory obligation to provide information.

Companies should therefore not wait for the official template to become available before reviewing their recruitment procedures.

Employee postings and work performed abroad

The new legislation also strengthens the information requirements applicable when an employee is to work in another country.

Before the employee is posted abroad, they must be informed of, among other matters, the destination country or countries, the anticipated duration of the assignment, the currency in which remuneration will be paid, any remuneration or allowances associated with the assignment, expenses or subsistence allowances and, where applicable, repatriation arrangements.

For certain postings within the European Union or the European Economic Area, additional information must be provided concerning the remuneration applicable in the host State and travel, accommodation and subsistence expenses.

Companies with internationally mobile employees should pay particular attention to this documentation to ensure that their existing assignment templates remain adequate.

What should companies do now?

With the entry into force of the new legislation approaching, companies are advised to take a structured approach to compliance. A contract review checklist should include at least the following steps:

1. Review the employment contract templates and annexes currently in use.

2. Compare their content with the new information requirements established by Royal Decree 723/2026.

3. Check that the duties and professional classification accurately reflect the employee’s actual role.

4. Review the description of fixed salary, salary supplements and variable remuneration schemes.

5. Verify that the information concerning working hours, shifts, irregular distribution of working time and overtime is accurate.

6. Review clauses relating to probationary periods and their compliance with the applicable collective bargaining agreement.

7. Identify the internal policies referred to in contractual documentation, including those concerning equality, harassment, LGBTI measures and training.

8. Assess whether the company uses automated or algorithmic systems that may affect employment-related decisions and determine what information must be provided.

9. Review onboarding procedures to ensure that the information is provided before the employment relationship begins.

10. Establish a system that enables the company to demonstrate that the documentation has been delivered and received.

The objective should not simply be to introduce a new employment contract template. What matters is ensuring consistency between the information provided by the company in writing and the actual conditions under which employees perform their work.

A review that goes beyond employment contracts

Royal Decree 723/2026 introduces a new level of detail in the information that companies must provide about terms and conditions of employment.

Compliance should therefore not be approached merely as a formal update of employment contract templates. Employment contracts, annexes, internal policies, remuneration schemes, working time arrangements and automated workforce management tools are all interconnected elements that must be consistent with one another.

With the legislation due to enter into force on 5 October, companies have limited time to review their employment contract templates and recruitment procedures and identify potential discrepancies before the new requirements become applicable.

At Adlanter, our labour compliance team can help companies review and adapt their employment documentation to the new information requirements, as well as assess internal procedures relating to recruitment, working time, remuneration and workforce management.