Spain
Transparent and predictable working conditions
Impact date: 5 October 2026. The Royal Decree was published on 15 September 2026 and enters into force on 5 October 2026. New hires from that date are subject to the new information requirements from the outset. Existing employees are not entitled to an automatic reissue of written statements, but may request any information required under the new regime that they do not already possess. Employers must respond within 30 working days of such a request.
Spain has partially transposed the Transparent and Predictable Working Conditions Directive (Directive (EU) 2019/1152) through Royal Decree 723/2026 of 9 September 2026, which was published on 15 September 2026 and enters into force on 5 October 2026.
The Decree replaces Royal Decree 1659/1998 and significantly expands employers' obligations to provide employees with written information about the essential terms of employment. The new requirements include more detailed information on remuneration (employers must provide information on the amount of basic salary and salary supplements, together with the method for calculating variable remuneration and the criteria governing entitlement to such payments), working time arrangements, variable pay, professional classification, temporary work arrangements, and certain algorithmic or automated decision-making systems (where such systems are used for employment-related decisions, employers must provide information on their operating guidelines, criteria and rules).
The required information may be included in the employment contract or provided in one or more separate written documents. Certain information may also be provided by precise reference to applicable legislation or collective bargaining agreements, where expressly permitted by the Royal Decree.
Employer implications/action needed Employers should:
- review and update Spanish employment contract templates, offer letters and onboarding documentation before 5 October 2026
- ensure written information includes the expanded list of mandatory terms, including detailed remuneration information and variable pay criteria
- confirm which information will be provided directly in contracts or through separate written statements and, where permitted by the Royal Decree, which information may be provided by precise reference to applicable legislation or collective bargaining agreements
- review procedures for responding to requests from existing employees and implement a process for meeting the 30-working-day response deadline
- audit any algorithmic or automated systems used in employment decision-making to ensure compliance with the new information requirements, including the obligation to provide information on their operating guidelines, criteria and rules
Employer risk Non-compliance could result in disputes regarding employment terms, increased scrutiny from labour authorities and difficulties defending employment claims where required information has not been provided. Particular attention should be given to remuneration disclosures, variable pay methodologies, working-time information and the new obligations concerning algorithmic systems.
Pay transparency
Impact date: Awaited
The legislative process to transpose the requirements of the Pay Transparency Directive continues, although Spain missed the June 2026 transposition deadline.
On 3 August 2026, the Ministry of Labour and Social Economy published a draft Royal Decree amending Royal Decree 902/2020 and opened a public consultation that ran from 4 to 24 August 2026. There is currently no official timeline for the new legislation coming into force.
Employer implications/action needed Employers should continue to monitor the progress of the legislation and finalize their readiness measures, including:
- finalize compliant pay structures: Ensure pay frameworks are fully aligned with the draft Royal Decree, with clearly defined, documented and objectively justifiable criteria for both pay and progression, demonstrably gender neutral in design and application
- operationalize employee information rights: Put in place robust processes to receive, assess and respond to employee pay information requests within the applicable deadlines, including clear internal ownership, guidance and escalation routes
- align end-to-end people processes: Update recruitment practices (including job adverts and salary setting), internal communications and policies, and ensure alignment with works council / union / employee representative engagement strategies
- pilot reporting and stress-test data capability: Test the organization’s ability to generate compliant pay gap reports. “Dry runs” using 2025 data is a key step to identify data, methodology or systems gaps ahead of the first mandatory reporting cycle
Employer risk Employers that delay preparation may face significant implementation challenges once the final legislation is published, particularly in relation to pay governance, employee information requests, job evaluation methodologies, pay gap reporting and engagement with employee representatives. Organizations that have not yet tested their data, reporting processes and pay structures may have limited time to address gaps once the final implementation timetable is announced.
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Platform work
Impact date: Awaited. The Spanish Government has indicated that it intends to complete transposition of the Platform Work Directive by the end of 2026.
Spain already regulates certain forms of platform work through Royal Decree-Law 9/2021 (the Rider Law), which introduced a rebuttable presumption of employment for certain platform-based delivery workers and algorithmic transparency rights for worker representatives. Employment status is generally determined under Article 1.1 of the Workers' Statute, based on the reality of the relationship, including subordination, control and integration into another's business.
In July 2026, Spain launched a prior public consultation on legislation to transpose the EU Platform Work Directive, which closed on 14 August 2026. The proposed reforms are expected to extend protections beyond delivery riders to platform workers more generally and strengthen rules on algorithmic management and employment-status determination. Spain also has criminal sanctions for certain forms of worker misclassification that go beyond the Directive's minimum requirements. No draft legislation has yet been published.
Employer implications/action needed Employers should:
- review worker-status assessments and self-employed contractor arrangements used in platform-based business models
- audit algorithmic management systems used to allocate work, monitor performance or make employment-related decisions
- prepare for expanded transparency, human oversight and information obligations relating to algorithms and AI systems
- monitor publication of the transposition bill and assess compliance gaps against the Directive's wider requirements
- consider misclassification risks, particularly where workers are subject to significant direction or control by a digital platform
Employer risk Risks include worker reclassification, employment-rights liabilities, sanctions for misclassification and non-compliance with algorithmic-management obligations. Spain's existing sanctions framework is already more robust than in many EU jurisdictions.
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