Royal Decree 723/2026 of 9 September, which entered into force on 5 October 2026, expands the information what employers are required to provide to employees and establishes that, generally, such information must be provided before the employment relationship begins. These obligations generally apply to employment relationships lasting more than four weeks.

Key Developments

The required information may be included in the employment contract itself or provided in one or more supplementary documents where the contract does not contain all the required details.

Information may be provided in paper or electronic format, provided that it is accessible, can be stored and printed, and the employer is able to demonstrate that it has been transmitted or received. Information must also be provided in an accessible and comprehensible format to employees with disabilities or limited intellectual capacity.

The information that employers should review includes the following:

• Fixed-term employment: the reason justifying the fixed-term nature of the contract, the specific circumstances supporting it and their relationship to the expected duration of the contract, as well as the relevant centre or place of work.
• Remuneration: basic salary and salary supplements, shown separately, together with the method used to calculate variable remuneration.
• Working time: the duration and distribution of working hours, shifts, overtime, annual leave and, where applicable, irregular working-time arrangements.
• Position and duties: the nature of the work to be performed, duties, occupational category or professional group, and a sufficiently precise description of the position.
• Probationary period and training provided by the employer.
• Applicable collective agreement, including the information required to identify it.
• Contract termination procedures and, where applicable, notice periods.
• Equality plan and protocol on sexual harassment and harassment on grounds of sex, as well as, where applicable, work-life balance policies and measures relating to LGBTI matters.
• Certain information concerning Social Security protection, voluntary supplementary benefits and pension plans or funds promoted by the employer.
• Additional information where the employee is expected to work abroad on a regular basis.

Algorithms and Automated Decision-Making Systems

The new legislation expressly establishes an obligation to provide information on the existence of algorithmic or automated decision-making systems.

Where such systems are used to make decisions concerning working conditions, including working hours, task allocation, remuneration, career progression, place of work or termination of employment, employers must also provide information on the systems’ operating procedures, criteria and operating rules.

Employers should therefore review which tools of this kind are currently used in their Human Resources processes and determine what information must be disclosed in relation to their use.

Subsequent Changes and Existing Employment Relationships

The obligation to provide information is not limited to the time of recruitment. Any subsequent change to previously communicated terms and conditions of employment must be notified in writing as soon as possible and, at the latest, on the same date on which the change takes effect.

No further notification will be required where the change arises directly from a statutory or regulatory provision, or from a collective agreement, to which a valid prior reference has been made.

In any event, these information obligations are supplementary in nature and do not replace any requirements, procedures or safeguards established under the Spanish Workers’ Statute that may apply to changes in terms and conditions of employment.

As regards employment relationships already in force on 5 October 2026, employers are not required to automatically reissue all the information. However, if an employee requests it, the employer must provide any information required under the new regulations that has not yet been made available to that employee, within a maximum period of thirty working days from receipt of the request.

What Should Employers Review Now?

In light of these new information obligations, employers are advised to review both their contractual documentation and their internal Human Resources procedures, with particular attention to the following:

• Employment contract templates and supplementary documentation provided to employees, to ensure that they contain all the required information.
• Onboarding processes, to ensure that information is provided at the appropriate time and through the legally prescribed means.
• Internal procedures for handling information requests from employees whose employment relationships are already in force.
• Procedures for notifying subsequent changes to working conditions, ensuring that such changes are properly documented and communicated within the applicable time limits.
• Algorithmic and automated tools used in Human Resources processes, identifying the circumstances in which their use may trigger specific information obligations.
• Document management and audit trail systems, ensuring that the employer can adequately demonstrate that the relevant information has been delivered, transmitted or received.

Failure to comply with the obligation to provide written information on the essential elements of the employment contract and the main terms and conditions of employment constitutes a minor infringement under the Spanish Law on Social and Labour Offences and Penalties.

 

Employment Law Department

GIMÉNEZ TORRES ABOGADOS

Equal pay for women and men is a fundamental principle of both European Union law and the Spanish legal system.

In this context, Directive (EU) 2023/970 represents a significant step forward in promoting pay transparency and strengthening the mechanisms designed to ensure the effective application of the principle of equal pay for equal work, or work of equal value.

Although Spain already has an advanced regulatory framework on pay equality—comprising of, among other provisions, Article 28 of the Workers’ Statute, Organic Law 3/2007, and Royal Decree 902/2020—the Directive introduces new measures that will likely require further adaptation of national legislation.

The deadline for transposition of the Directive expired on 7 June 2026. However, as of the date of publication of this article, no specific legislation has yet been enacted in Spain to formally incorporate its provisions into domestic law.

Obligations Currently in Force in Spain

Spanish companies are already subject to a number of obligations relating to pay equality, including:

• The obligation to guarantee equal pay for work of equal value.
• The preparation and maintenance of a pay register.
• The implementation of pay audits where legally required.
• The negotiation and implementation of equality plans when mandatory.
• The use of objective criteria to justify any pay differentials.

Accordingly, the future adaptation of Spanish legislation to the Directive does not begin from a position of regulatory absence, but rather from an existing legal framework that already incorporates important pay transparency and monitoring mechanisms.

Key Developments Introduced by the Directive

The Directive places pay transparency at the centre of efforts to prevent and address potential pay discrimination.

Among its principal measures are:

• The right of job applicants to receive information regarding the initial salary or salary range applicable to the position offered.
• The prohibition of requesting information about candidates’ salary history during recruitment processes.
• The expansion of employees’ rights to obtain information regarding the criteria used to determine pay, career progression and salary advancement.
• The strengthening of enforcement mechanisms and legal remedies in cases of pay discrimination.
• The introduction of new gender pay gap reporting obligations for companies above certain workforce thresholds.

In addition, the Directive provides for joint pay assessments where significant pay disparities between women and men are identified and cannot be justified by objective and gender-neutral criteria.

Gender Pay Gap Reporting Obligation

The Directive establishes a phased reporting system on the pay gap, based on company size:

• Companies with 250 or more employees: annual reporting obligation from June 2027.
• Companies with between 150 and 249 employees: reporting obligation every three years, beginning in June 2027.
• Companies with between 100 and 149 employees: reporting obligation every three years from June 2031.
• Companies with fewer than 100 employees: no periodic reporting obligation, unless future national legislation provides otherwise.

Recommendations for Companies

Although the transposition of the Directive into Spanish law remains pending, companies are advised to begin assessing the extent to which their remuneration and human resources policies are aligned with the forthcoming requirements.

In particular, organisations should consider:

• Reviewing salary structures and the criteria used for allocating pay supplements and benefits.
• Ensuring that job evaluation systems are based on objective and consistent criteria.
• Analysing promotion procedures and salary review processes.
• Keeping pay records and, where applicable, pay audits required under current legislation, up to date.
• Reviewing recruitment and hiring processes from a transparency, objectivity and non-discrimination perspective.

Conclusion

Directive (EU) 2023/970 reinforces the trend towards greater pay transparency and more rigorous scrutiny of potential pay disparities between women and men.

While many obligations relating to pay equality already form part of the Spanish legal framework, the future transposition of the Directive is expected to increase transparency and reporting requirements for employers.

In this context, companies are encouraged to use this transitional period to review their remuneration systems, recruitment and promotion procedures, and internal monitoring mechanisms, thereby facilitating compliance with the future regulatory framework and reducing potential employment and regulatory risks.

Employment Law Department
Giménez Torres Abogados

The Spanish Supreme Court has admitted a cassation appeal filed by the Tax Law Department of Giménez Torres Abogados, raising an issue of significant constitutional and tax importance: whether the Spanish Tax Authorities may rely on photographs and information obtained during a search of premises that was subsequently declared null and void for violating the fundamental right to the inviolability of the home, in order to support a tax assessment based on a valuation report that incorporates such unlawfully obtained evidence.

The Supreme Court has also recognized cassational interest in a second issue raised in the same appeal, which is of considerable relevance in the field of related-party transactions. Specifically, the Court will examine whether the concept of a “shareholder or participant” under Article 18.2(a) of the Spanish Corporate Income Tax Act (“An entity and its shareholders or participants”) also encompasses situations of indirect related-party relationships between an individual and a company, where the individual is not a direct shareholder of the company but holds an interest in another entity that, in turn, is a shareholder of the first company.
The forthcoming judgment is expected to provide important guidance on the constitutional limits of tax inspections and on the interpretation of related-party transaction rules under Spanish tax law.

Reference:
www.economistjurist.es

On 20 November, we had the pleasure of participating in the session organized by the Spanish-Danish Chamber of Commerce, titled:
“6 Months of Alternative Dispute Resolution (ADR) Mechanisms: What Have We Learned?”

Our partner Ignacio Guillén González was one of the speakers, contributing to a panel that explored both the theoretical and practical keys helping professionals understand the relevance of the recent reform. The discussion focused on the initial impacts observed, the challenges emerging during these first months, and the essential criteria for selecting the most suitable ADR mechanism for each case.

We thank the Spanish-Danish Chamber of Commerce for the invitation and for fostering such a valuable space for reflection on the future of dispute resolution.
We remain committed to sharing knowledge and expertise to promote efficient and needs-oriented conflict resolution solutions.

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