Spain approves decree requiring companies to detail salary and hours in contracts

Companies must now provide detailed information on salary, working hours and other crucial contract terms, rather than just referring to the collective agreement.

The Council of Ministers has approved a royal decree that, after years of delay, brings Spanish regulations in line with a European directive on transparent and predictable working conditions. This means companies will have to be much more explicit when informing employees about what they are signing. No more small print or generic references; the essentials of the contract must now be put in black and white.

## Beyond the collective agreement

Until now, it was often enough to say "collective agreement X applies" to settle the explanation of conditions. Well, that is no longer valid. The new regulation requires breaking down the base salary and all supplements. If there are variable amounts, such as bonuses or commissions, it will be necessary to explain how they are calculated and under what criteria they are paid. Expense allowances, payment frequency and even the method of payment must also be clear. And note, if a worker wants to know how their variable pay is calculated, they can request that specific information from the company, provided the contract does not already specify it. Any change in working conditions must be communicated in writing at the time it occurs. The contract must also reflect its duration, the company's registered address, the workplace, the content of the work and the professional category or group.

## Transparency in working hours and use of algorithms

Working hours are also subject to greater scrutiny. Their duration and how working time is distributed must be detailed. If there are circumstances that allow them to be modified, these must be explained. Overtime and its pay are also included. In cases of irregular distribution of working hours, the contract must specify how it is determined and what the minimum notice periods are. For permanent seasonal workers, the information extends to the expected periods of activity and inactivity. Even time devoted to work-life balance and co-responsibility must be taken into account.

One of the major innovations is control over the use of algorithms. Companies that use algorithmic systems to make decisions on task allocation, shifts, salary, promotion or even termination of contracts must report this. The aim is to bring more transparency to decisions that directly affect the workforce. The Minister of Labour, **Yolanda Díaz**, has indicated that this measure aims to tackle fraud, such as that related to probation periods. In fact, it is noted that **75%** of companies reviewed have committed irregularities in this regard. The duration of the probation period, whether the legal **six months** or a longer one set by collective agreement, must be clearly specified, justifying any extensions.

## Specific cases and accessibility

The regulation also considers particular cases. All information must be accessible to people with disabilities. Specific rules are established for those working abroad, detailing the currency of payment. Workers in the fishing sector will see reinforced information on their rest periods, and merchant navy workers will receive specific conditions, for example, in the event of repatriation due to accident. The Government has had to hurry to transpose this directive, which should have been in force since **1 August 2022**, to avoid an infringement procedure by the **European Union**.