Royal Decree 723/2026 employment contract: since 5 October 2026, employers in Spain must give each worker, in writing and before they start work, the essential information about their employment relationship, and must be able to prove they did so. The safest way to comply is not to add pages to the contract, but to organise the information in three layers: the contract (what is individual and stable), an information annex (what is collective and changing) and precise cross-references to the collective agreement and the law (what is already regulated).
Key points:
- It applies to employment relationships lasting more than four weeks (Article 2.2).
- The information must be provided before the employment relationship begins (Article 7.1), on paper or electronically, and the employer must keep proof of delivery (Article 6.2).
- Compliance can be achieved through the contract itself, an annex, or a precise reference to the law or the collective agreement (Articles 3.1 and 3.3).
- The SEPE (Spain’s Public State Employment Service) template is a reference, not an obligation (first additional provision).
- For existing employment relationships, the worker may request the information and the employer has thirty working days to provide it (sole transitional provision).
What changes under Royal Decree 723/2026 for employers?
Since 5 October, whenever an employer hires someone for a relationship lasting more than four weeks, it must give them in writing, and before they start, far more information than Royal Decree 1659/1998 required. The new regulation repeals that decree. What could previously be handled within two months of hiring must now be settled on day one.
The employer must also be able to prove it delivered the information. Article 6.2 requires it to be provided on paper or in an accessible electronic format that can be stored and printed, and that the employer retains proof of transmission or receipt.
Most commentary so far has focused on the list in Article 3: itemised pay, working time, probationary period, collective agreement, equality plan, algorithmic systems and more. That is useful, but it does not answer the question our clients at Suárez de Vivero ask most: where does all of this go? Do we rewrite the contract, add an annex, or use the SEPE template?
Our answer is neither everything in the contract nor everything outside it. Royal Decree 723/2026 of 9 September does not require more paper; it requires better-organised paper.
Can an employer comply with Royal Decree 723/2026 by referring to the collective agreement?
Yes, to a large extent, and it is the tool that is going most unnoticed. Article 3.3 allows a significant part of the duty to inform to be met by referring to the applicable legislation, regulations or collective agreements, provided the reference is precise and clearly identifies the rule concerned.
The advantage goes beyond tidiness. If the information was given by cross-reference and the collective agreement changes, the employer does not have to inform each worker again in writing (Article 5.2). A contract that copies the agreement’s pay tables or holiday rules word for word becomes outdated at the first revision. One that cross-refers correctly updates itself.
“Correctly” means precisely: the specific article and the collective agreement identified by its code and publication date (Article 3.2.o). The classic formula “in accordance with the applicable collective agreement” does not meet the standard.
There is also an important limit: cross-referencing works only for legislation and collective agreements, not for the employer’s internal policies.
A bonus plan, a harassment protocol or a work-life balance policy cannot be complied with by citing them: they must be handed over.
Royal Decree 723/2026 employment contract: where does each item go?
The approach we are implementing with our clients uses three layers, which divide the information according to its nature and how often it changes.
By separating the annex from the contract, when a policy changes it is enough to update the annex and deliver the new version. The contract stays untouched.
Which five clauses create the most risk for the employer?
Even with a good structure, in the reviews we are carrying out we find five points where careless drafting can turn against the employer.
1. “All-inclusive” pay
A clause stating a gross annual salary of X euros, with no further detail, no longer complies with Article 3.2.f). Each pay component must appear separately, with its frequency and payment method.
We recommend using the exercise to review the offsetting and absorption clause, because itemising often exposes inconsistencies nobody had noticed.
2. Variable pay
The decree requires an explanation of how variable pay is calculated and the criteria for earning it, and here a cross-reference to the collective agreement is not enough. The most prudent course is a dedicated bonus policy, delivered as a separate document, clear on criteria but preserving the margins the employer can legitimately keep: annual target-setting, the requirement to be employed on the payment date, and similar conditions.
Clarity is not at odds with flexibility, as long as the drafting is deliberate.
3. The probationary period
This is the point that concerns us most. The rule requires informing about each party’s obligations to carry out the work experience that is the purpose of the probationary period (Article 3.2.h).
If this is read as an invitation to list measurable targets, the worker gains an argument to challenge the termination as if it were a dismissal for cause. The drafting should be functional: tied to the duties of the role and the employer’s commitment to enable their performance, without closed indicators that would later have to be justified before a court.
4. Algorithmic systems
Article 3.2.k requires informing about the existence of algorithmic or automated decision-making systems and, when they are used to decide working conditions, about their guidelines, criteria and operating rules. This affects shift or task allocation, pay, promotion, workplace and termination. You can read more in our analysis of information on algorithmic systems in the employment contract.
Before drafting a single line, we ask our clients to sit down with IT and HR and take inventory: recruitment software, scheduling tools, performance-evaluation platforms. Many employers discover in this exercise that they use more automation than they thought.
5. The modification clause
The decree asks for a description of the cases and procedures for changing duties, classification, pay and working time (Article 3.2.q). It neither replaces nor extends Article 41 of the Workers’ Statute, and Article 8.1 expressly preserves the requirements and procedures that statute lays down.
The clause should refer to Articles 39, 40 and 41 of the Workers’ Statute and to any flexibility mechanisms in the collective agreement. Well drafted, it strengthens the employer’s position; badly drafted, it can be read as a self-imposed limit the employer never intended to accept.
Is the SEPE information document template mandatory?
No. The first additional provision provides that the SEPE will make an information document template available, which has now been published, but it makes clear that this does not condition the enforceability of the duty to inform.
The template works as a reference, although its logic is that of a generic form. For an employer with its own or a sector-wide collective agreement, several internal policies and variable pay, we prefer our own annex that fits the contract, whose drafting we control and that can be version-controlled.
What should employers do now?
Current staff are not entitled to receive all this information automatically, but they may request it, and the employer has thirty working days to provide it, provided the worker did not already have it (sole transitional provision). That leaves little room to improvise.
The sensible steps are:
- Review contract templates against Article 3 of Royal Decree 723/2026.
- Decide which information belongs in each layer.
- Take inventory of internal policies and automated systems.
- Put in place a delivery mechanism that leaves a trail: electronic signature or acknowledgement of receipt in the worker portal.
- Prepare a template response for when the first request arrives.
This review connects with preventive employment compliance for companies and reduces the risk of future disputes, such as those that arise in disciplinary dismissal in Spain.
Royal Decree 723/2026 employment contract: less paper, better organised
Royal Decree 723/2026 does not require every contract to be rewritten, but it does require rethinking how contracts are built. Employers who approach it as an exercise in architecture rather than accumulation will end up with less paper, better organised, and with a contract that, if the time comes, works in their favour.
At Suárez de Vivero we are reviewing contract templates and designing information annexes for domestic and international companies that need to adapt their onboarding processes to the new framework.
Frequently asked questions about Royal Decree 723/2026 and the employment contract
When does Royal Decree 723/2026 apply?
From 5 October 2026, twenty days after its publication in the BOE on 15 September 2026. It applies to employment relationships lasting more than four weeks.
Do all employment contracts have to be rewritten?
No. The obligation is deemed met when the information is already in the written contract the worker holds (Article 3.1). If the contract covers it only in part, the employer must provide the rest in writing. For existing relationships, the information is provided when the worker requests it.
Is it enough to say “in accordance with the collective agreement”?
No. The cross-reference must be precise and clearly identify the applicable provision, and the collective agreement must be identified by its code, publication date and validity.
What happens if the collective agreement changes?
If the information was given through a precise cross-reference to the agreement, the employer does not have to inform again in writing about that change (Article 5.2).
How is delivery of the information proved?
Through a paper or electronic medium that is accessible, can be stored and printed, and of which the employer keeps proof of transmission or receipt (Article 6.2), for example an electronic signature or an acknowledgement of receipt in the worker portal.
When must a change in conditions be notified?
As soon as possible and, at the latest, on the day the change takes effect (Article 7.3).
