New disclosure requirements in employment contracts under Real Decree 723/2026

Real Decree 723/2026 has been in effect since 5 October 2026. It partially transposes Directive (EU) 2019/1152 and replaces Real Decree 1659/1998. Its main effect is not to create a new type of employment contract, but rather to expand and bring forward the written information that employers must provide regarding working conditions. In general, these obligations apply to employment relationships lasting longer than four weeks.

In addition to identifying the parties, the position, the workplace, and the duration of the contract, the following must be detailed: compensation (base salary, supplements, and criteria for calculating variable pay), the workday and its schedule, rules for modifying schedules, overtime, annual leave, training, and the termination procedure and notice periods. The collective bargaining agreement must also be identified, including its code, publication, and effective date, and information must be provided on equality plans and protocols and, where applicable, LGBTI measures.

Furthermore, when algorithmic or automated systems are used to make decisions regarding working conditions, their existence, guidelines, criteria, and operating rules must be disclosed. General information must be provided before the employment relationship begins; changes must be provided no later than the day they take effect. This information may be included in the contract or in a supplementary document, in paper form or an accessible electronic format, with proof of delivery retained.

However, for employment relationships already in effect as of 5 October 2026, the company must provide any outstanding information upon the employee’s request within the following 30 business days. Changes made after the effective date must be communicated in accordance with the new deadlines.

That said, the most efficient approach is not to indiscriminately rewrite all contracts; rather, the ideal course of action is to update employment templates, prepare a standard informational appendix by category or position, review variable compensation and work schedule policies, and establish a process for delivering and archiving supporting documentation. This reduces the administrative burden and the risk of disputes due to a lack of transparency, without confusing the duty to inform with the legal procedures required to modify working conditions.