Spain implements new labor transparency rules for contracts

Spain has published a new Royal Decree in the Official State Gazette (BOE) to increase transparency and predictability in labor conditions, transposing European Directive 2019/1152. The regulation, which enters into force on October 5, 2026, mandates that companies provide detailed written information regarding essential employment terms from the start of the relationship.

Key changes include the prohibition of generic references such as ‘according to collective agreement’ (según convenio). Employers must now explicitly detail base salaries, variable supplements, calculation methods, work schedules, rest periods, and overtime compensation. Furthermore, the decree requires companies to disclose the existence and functioning criteria of any algorithms or automated systems used to make decisions regarding salaries, task assignments, professional progression, and contract termination.

The reform also addresses probationary periods, requiring companies to specify their duration, conditions, and the specific requirements or tests used to evaluate worker aptitude. This measure aims to provide greater legal certainty and combat job precariousness by ensuring workers have clear information regarding their rights and duties before signing contracts.