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It’s Official: Real Decreto 723/2026 Comes into Force on October 5, 2026

The much-anticipated Real Decreto 723/2026, published in the BOE on September 15, 2026, will come into effect on October 5, 2026. This new decree, which transposes the EU Directive 2019/1152, marks a turning point in how companies must inform their employees about the essential conditions of employment. By replacing the old Real Decreto 1659/1998, it expands the requirements for information disclosure and adapts to the modern employment landscape.

From Draft to Official Publication: What the Final Text Says and Why It’s Coming Now

The process of transitioning from a draft to the final version of Real Decreto 723/2026 has been rigorous and comprehensive. Driven by the need to comply with EU Directive 2019/1152 and following detailed procedures by the European Commission, this decree arrives at a time when labor transparency is a fundamental requirement in Spanish legislation. With past non-compliance issues and the looming intervention by the European Court of Justice, the European context has exerted significant pressure to modernize labor norms with greater clarity and precision.

Who Is Affected: Contracts Longer than Four Weeks and Exceptions for Fishing and Maritime Transport

The decree mainly applies to employment relationships that last more than four weeks. However, there are clear exceptions for certain sectors such as fishing and maritime transport, where special regulations will apply. These sectors benefit from a differentiated treatment in line with international agreements like the Maritime Labour Convention of 2006, ensuring that they operate under distinct conditions compared to other types of employment.

The Information Your Company Must Provide in Writing Before You Start Working

One of the most significant innovations of Real Decreto 723/2026 is that companies are now required to provide detailed written information on the terms of employment before work begins. This information includes the identity of the parties, the start date and duration of the contract, the workplace, job title or category, a detailed breakdown of salary including base pay, supplements, periodicity, and performance criteria, as well as work hours, extra hours, and vacation time. Additionally, details on automated decision-making systems and policies on equality and harassment are required, ensuring complete transparency from the beginning of the employment relationship.

Itemized Salary and Identified Collective Agreements: Saying Goodbye to ‘According to the Agreement’

The new decree eliminates the ambiguity surrounding the term “according to the agreement.” From now on, companies must provide an itemized breakdown of salary, disclosing not only the base salary but also each supplement, the periodicity, and the criteria for variable compensation. Furthermore, the applicable collective agreement must be clearly identified, including its title, code, publication date, and duration, thereby promoting greater transparency in labor negotiations and the enforcement of workers’ rights.

Algorithms and Artificial Intelligence: Your New Right to Know if They Determine Your Conditions

Another groundbreaking aspect of the decree is the obligation to inform employees if algorithms or automated systems are used in determining employment conditions. This right to transparency is aimed at reducing opacity in human resource management, enabling workers to understand and, if necessary, challenge decisions made by automated systems that could impact their working conditions.

If You Work Abroad: Country, Duration, Currency, and Repatriation

For employees working overseas, Real Decreto 723/2026 mandates the provision of essential details such as the destination country or countries, contract duration, the currency in which payment will be made, and repatriation conditions. These measures ensure that workers’ rights remain protected regardless of geographical challenges, and that relevant information about the official national portal for expat workers in the EU/EEA is available when needed.

Changes in Your Conditions: The Company Must Inform You in Writing by the Effective Date

The decree requires that any change in employment conditions be communicated in writing. Companies must provide this notification by the day the changes take effect at the latest, thus protecting employees from uncommunicated or implicit modifications and ensuring clear and timely updates of their working conditions.

What If Your Contract Is Older than October 5? How to Request Information and the 30 Working Days Deadline

For workers whose contracts were signed before October 5, 2026, the decree provides a special procedure. Employees can request the additional information, and companies are then required to furnish these details within 30 working days from the receipt of the request. This clearly defined timeframe reinforces the commitment to transparency even for existing contracts, ensuring that all workers receive the same level of detailed information as those with new contracts.

Foreign Workers: How This Document Aids in Residence and Work Permit Renewals

The new decree not only benefits workers residing in Spain but also supports foreign employees. By having an official and detailed document outlining employment conditions, foreign workers will find it easier to renew their residence and work permits, as authorities will be able to assess their contractual status more accurately.

Checklist for Companies and HR: Reviewing Contract Models, Annexes, and the Ministry’s Informative Document

As companies and Human Resources departments adapt to this new regulation, it is essential to review and update contract models and their annexes. They should also stay alert for the official informative document, which will be published by the Ministry of Labor on the public employment service website 20 days after its BOE publication.

What Still Remains Unchanged: Salary Transparency (EU Directive 2023/970) and Other Pending Issues

While Real Decreto 723/2026 introduces significant changes, there are still pending reforms such as salary transparency, which will be governed by EU Directive 2023/970. These aspects are currently under discussion, and future regulations are expected to further complement and expand the current legal framework.

Frequently Asked Questions

To wrap up, it is common to have questions when such major reforms are implemented. Frequently asked questions include: What happens if a company fails to comply with these requirements? How is the information kept up to date? And what measures can employees take if their rights are violated? It is advisable for both workers and employers to seek proper legal guidance to ensure these new rights are fully implemented and protected.

If you need further information or personalized advice, do not hesitate to contact Fernanda Vargas via WhatsApp or book your consultation through Calendly.