Spain implements new labor transparency and contract rules

New labor regulations in Spain, specifically Real Decreto 723/2026, will take effect on October 5, 2026. This legislation increases transparency requirements for employment contracts and job offers, partially transposing European Directive 2019/1152.

Under the new rules, companies must provide detailed written information regarding essential hiring conditions. This includes a breakdown of base salaries and all supplements, as well as clear explanations of how variable components like commissions or incentives are calculated. Generic references to collective agreements without specific identification will no longer be sufficient.

Additionally, employers must detail working hours, including daily, weekly, and annual distributions, shifts, overtime compensation, and vacation procedures. The regulation also impacts how probation periods are communicated and requires specific justifications for extended periods. These measures aim to ensure employees have full knowledge of their contractual terms from the outset.