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Spain forces employers to reveal pay terms and algorithm use in new contracts

Lara Carter RUSSPAIN.com

Post by Lara Carter

Spain forces employers to reveal pay terms and algorithm use in new contracts RUSSPAIN.com © russpain.com
Spain forces employers to reveal pay terms and algorithm use in new contracts © russpain.com

Spanish employers must now spell out pay and working hours in employment contracts, including trial-period terms and any use of algorithms. The new regulation aims to protect workers from hidden conditions and ensure clarity before a job begins.

Spanish employers now have to spell out pay and working hours in every new employment contract, including trial-period terms and any use of algorithms. Approved by the Council of Ministers on September 8, 2026, the change alters how job offers and workplace terms are communicated. The Spanish government says the reform implements a European directive on transparent and predictable working conditions, expanding what employers must tell new hires.

Contracts must clearly set out pay and overtime rules, vacation entitlements, and the exact length and terms of any probation period. If a company wants a trial period longer than six months, it must explain why. Open-ended or vague probation is no longer allowed: workers will know from the start when their trial ends and what is expected. This information must also be accessible to employees with disabilities, information from a DLA Piper legal summary.

The new royal decree replaces the previous 1998 regulation and sets stricter requirements for justifying probation periods. La Razón described the change as the “causalization” of trial periods. The reform is presented as a impressive expansion of workers’ transparency rights, particularly around algorithmic management, and extends rights previously limited to certain categories of employees.

If a company uses automated systems or algorithms to decide whom to hire or fire, assign tasks, or set working hours, it must tell employees. Companies do not have to share source code, but they must explain the criteria and logic behind these systems. The rule responds to concerns about hidden algorithmic management at work. Spain’s earlier laws gave some workers the right to information about algorithmic decisions; the new regulation extends that right to everyone, as reported by El Economista Jurist.

Current employees are covered too. Anyone with a contract signed before the new rule can ask for missing information, and employers have thirty days to provide it. For new hires, all details must be provided before work starts. The government plans to publish a standard contract template within twenty days of the law taking effect, but the exact start date and any transition rules will become clear only once the regulation appears in the official state bulletin (BOE). Several sources, including La Razón, report that the law will take effect 20 days after publication in the BOE.

If a company changes any basic condition, such as pay or working hours, it must inform staff immediately. Workers are entitled to keep copies of their contracts and any annexes as proof of what was agreed. The regulation does not override collective bargaining agreements or existing labor laws, but it requires employers to make the applicable rules clear.

Workers and their representatives can challenge any algorithm-driven decision they consider discriminatory or unlawful. The measure aims to guard against hidden bias and unfair treatment as more companies use digital tools to manage staff. DLA Piper says information about algorithms must also be provided in accessible formats for employees with disabilities.

Spain is not the only country tightening rules for employers. Other regions have introduced direct support for businesses and workers facing new regulations, as seen in recent measures in Ceuta. Spain’s approach focuses on transparency and workers’ rights, not financial aid.

By requiring companies to disclose pay and working hours, along with the logic behind automated decisions, the regulation bars hidden terms and undisclosed algorithms in Spanish labor contracts.

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