Under a new regulation, businesses must now offer their employees comprehensive written details about their employment conditions. This includes information on any algorithmic or automated systems that influence decisions regarding salaries, work schedules, tasks, promotions, workplace location, or even contract termination.
The Real Decreto 723/2026, published in the Boletín Oficial del Estado, expands workers’ rights to information and will take effect on October 5. It partially implements a European directive aimed at ensuring transparent and predictable working conditions, replacing the previous Real Decreto 1659/1998.
A significant update involves the use of algorithms and automated systems in making employment decisions. Companies must disclose their existence and operational guidelines when these systems are used to make decisions affecting work conditions.
Key Areas Affected
- Work schedule duration and distribution
- Task assignments
- Salary determination
- Career progression
- Workplace location
- Contract termination
The decree specifies that this obligation applies only to systems used for decisions impacting these areas. Additionally, companies must provide detailed information on salary components, including base pay and any additional compensation, along with how variable pay is calculated.
Details on work hours, including daily, weekly, and annual distribution, night or shift work, and procedures for schedule changes, must also be communicated. This includes overtime, vacation policies, trial periods, and training rights.
For irregular work schedules, companies must specify potential service days and hours, along with minimum notice periods. For intermittent workers, periods of activity and inactivity, or their estimates, must be disclosed.
The decree also outlines obligations regarding contract termination procedures, including formal requirements and notice periods, and requires identification of applicable collective agreements with relevant details.
