Decree of transparent conditions: All the information that companies must provide before hiring

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The Government approved this Tuesday in the Council of Ministers a new decree to transpose the European Directive on transparent and predictable working conditions.

The regulation is finally approved as regulatory development, so it will not be subject to voting in Congress. The Lower House was processing a bill to transpose the directive that had stalled in the drafting phase.

What news does the decree foresee?

The regulation completely replaces Royal Decree 1659/1998 to require companies to inform in writing of those conditions considered essential before starting the employment relationship.

Spain already required written information on certain essential conditions of the contract, but now the Government expands the entire catalog of information, advances its delivery, and specifies what the worker must know about aspects that were not previously included with this level of detail.

The general obligation applies to employment relationships of more than four weeks. For fishermen and maritime workers, specific rules are established regardless of the duration of the contract.

Remunerations

The company must specify:

  • base salary;
  • each of the salary supplements separately;
  • frequency and method of payment;
  • when there is variable remuneration, how it is calculated and what criteria determine that it is paid.

Schedules, shifts, and changes of work hours

The company must inform about the duration and distribution of the daily, weekly, and annual workday, expressly identifying night work or shifts.

It must also explain how the workday can be modified or how to change shifts, what happens with overtime and its remuneration, and how vacations are determined.

Irregular schedule: when they can call you and with how much notice

When there is an irregular distribution of the workday, the information must include the hours and reference days on which the company can require work and the minimum notice periods both to start a task and to cancel it.

For discontinuous fixed workers, information must also be provided about periods of activity and inactivity or, when they cannot yet be known exactly, an estimate.

Trial periods

The new regulation requires the company to expressly inform the worker of "the duration and conditions of the trial period, when it is agreed" before starting the employment relationship. It also requires specifying the causes that would imply the termination of the contract.

If the algorithm decides...

Companies must inform about the existence of algorithmic or automated decision-making systems when used to decide issues related to working conditions.

And not only communicate that there is an algorithm, but inform about its "guidelines, criteria, and rules of operation" when it intervenes in decisions about: working hours, task assignment, salaries, professional promotion, workplace, or termination of the contract.

A company that uses AI or algorithms to distribute tasks, determine salary variables, or make certain labor decisions will have to inform the worker individually about its existence and operation in the terms provided.

Which agreement applies

The company must provide data that allows for its identification, including the agreement code, the publication date in the BOE, the period of validity, and the situation of ultra-activity, when applicable.

Reconciliation, harassment protocol, and LGTBI measures

The worker must be informed of the existence and identification of the equality plan of the company. They must also know, when it exists, the corporate reconciliation policy that improves or develops the legal minimums and must receive information about the protocol against sexual harassment and harassment based on sex.

The decree also incorporates the duty to inform about the planned set of measures and resources to achieve real and effective equality for LGTBI people, when the company has it.

How the contract can end

From the beginning of the relationship, information must be provided about the contract termination procedure, including its formal requirements and the notice periods that must be respected by the company and the worker.

If at that moment the period cannot be specified, it must be informed how it will be determined.

Social Security and company pensions

The company must identify the managing or collaborating entity chosen to cover contingencies and benefits and explain if there is direct collaboration from the company itself.

It must also inform about the voluntary improvements in Social Security protection and indicate the pension plans and funds promoted for workers and the contributions made.

If there are changes, they are communicated

If any of the covered conditions are modified, the company will have to communicate it in writing "as soon as possible" and, at most, on the same day the change takes effect.

There is an exception when the information has been provided by reference to a law or agreement and what changes is precisely that norm.

On paper or electronic format

The information may be provided in paper or electronically. If the digital route is used, it must be accessible to the worker, able to be stored and printed, and the company must keep proof of the transmission or reception. For workers with disabilities or limited intellectual capacity, the information must be provided in an accessible and understandable manner.

Work abroad: salary, expenses, and repatriation

When a worker is going to normally provide services outside of Spain, they must know before leaving the country, duration, currency in which they will be paid, remuneration and compensations, travel expenses and allowances, and, when applicable, the conditions of repatriation.

For movements within the EU or the European Economic Area, additional obligations regarding remuneration at the destination, expenses, and access to official information from the host country arise. These specific obligations do not apply when each period abroad does not exceed four consecutive weeks.

Also for those already hired

For employment relationships that are already in force, the worker must request it. From that request, the company will have 30 working days to provide the information that was not already in the employee's possession.

The SEPE must publish a model of informative document within a maximum period of 20 days from the publication in the BOE of the decree.

But, even if it does not yet exist, companies must provide the information by another means that allows for a record and is accessible.

Fishermen and maritime workers

The contracts of fishermen and maritime workers must always be formalized in writing, regardless of their duration.

The new regulation establishes a detailed minimum content. In fishing, it is also expressly recognized that the worker can request legal advice at the time of signing, and it must be noted whether or not they made use of that possibility.

When does it come into force?

The text establishes a vacatio legis of 20 days from its publication in the BOE. In principle, the intention of the Ministry of Labor was to begin applying the new regulation immediately.

Sources from the Ministry explained to DEMÓCRATA that the employers' association requested a brief adaptation period, especially considering SMEs, and the request was accepted.

More key points, information and questions with FREN

AI-GENERATED CONTENT

At what stage was the parliamentary processing of the bill to transpose the European directive before the decree was approved?

To accurately answer your question about “at what stage was the parliamentary processing of the bill to transpose the European directive before the decree was approved,” I first need to precisely narrow down which specific case we are talking about. As formulated, the question refers to:

  • A bill transposing a European Union directive.
  • A specific European directive intended to be incorporated into the Spanish legal system.
  • A decree (most likely a royal decree-law, although it could be another type) that was ultimately approved, presumably to meet deadlines or compensate for the lack of progress of the bill.

The problem is that, over recent years, there have been numerous transposition bills of directives coexisting with royal decree-laws or other regulatory instruments, for example in areas such as digital services, energy, consumer protection, transport, taxation, etc. Without knowing:

  • The official full or approximate title of the bill, or
  • The number and year of the European directive (for example, “Directive (EU) 2019/XYZ of the European Parliament and of the Council”), or
  • At least the material scope (energy, data, transport, housing, taxation, equality, etc.) and some approximate time reference,

it is not possible to reliably identify which initiative you want to analyze. And without that prior identification, any answer about “at what phase it was” would carry a very high risk of referring to another different bill.

Under normal conditions, to determine the exact stage of parliamentary processing of a bill before resorting to a decree (generally a royal decree-law), the procedure would be:

  • Locate the complete parliamentary file of the bill, which records all the milestones of the processing: consideration (if applicable), general debates, total amendments, committee stage, commission stage, amendments to the articles, possible vetoes or amendments from the Senate, etc.
  • Identify the specific time point when the decree was approved (for example, the date of the royal decree-law) and see what stage the bill had reached at that time (if it was still in committee, if it was pending report, if the Senate had not yet ruled, etc.).
  • Contrast that information with the political and legal motivation usually set out in the preamble of the royal decree-law or in the validation debates, where the Government usually justifies why, despite having a bill underway, it opts for the use of the decree-law (urgency, imminent transposition deadlines, threat of infringement procedure, need for legal certainty, etc.).

This comparison is key to rigorously answering your question, because what you really want to know is whether the bill was:

  • In an initial phase (for example, newly presented and pending amendments),
  • In an intermediate phase (in committee or commission, with amendments already registered), or
  • Already in a final phase (about to be definitively approved, or only pending the second chamber’s reading).

Since there are many possible examples and I do not want to substitute one case for another, I would ask you to provide, to be able to specify the answer with the detail you seek, some of these data:

  • The official or approximate name of the bill (even if incomplete).
  • The number and year of the directive (for example, “Directive (EU) 2019/XYZ”) or at least the scope (energy, digital, transport, etc.).
  • The type of decree that was approved (if you recall it was a royal decree-law, an ordinary royal decree, or if it had a specific number, like “Royal Decree-law X/20XX”).
  • Any time reference (e.g., “it was approved in 2023,” “it was in the last legislature,” “it was about energy issues,” etc.).

With any of those elements, I can identify the correct parliamentary file and tell you, concretely, at what point in the processing the bill was just before resorting to the decree, also explaining what that phase implied and how it fit into the usual parliamentary dynamics.

If you can specify which directive and which bill you mean, I will reformulate and give you a detailed answer about the processing situation at that moment prior to the decree.

What are the competencies of the Ministry of Labor regarding labor transparency according to Spanish legislation?

In Spanish legislation, the competencies of the Ministry of Labor and Social Economy (MITES) regarding labor transparency — and particularly pay transparency — are articulated through the Workers' Statute, equality legislation between women and men, and the framework of the Labor Inspectorate. These norms configure a block in which the Ministry exercises normative, registry organization, supervision/inspection, and technical support functions.

1. Basic framework: information and transparency in the Workers' Statute

The Royal Legislative Decree 2/2015, of October 23, approving the revised text of the Workers' Statute Law (ET), recognizes as basic rights:

  • The right of workers to information, consultation, and participation in the company (art. 4.1 and 4.2, letters g and related).
  • The right not to be discriminated against in pay matters, based on the principle of equal treatment (art. 4.2.c and art. 17).

These provisions are developed through the information rights of the legal representation of workers, contained in art. 64 ET (information on the evolution of the wage structure, personnel policies, etc.), which are the legal basis on which the Ministry and the Inspectorate require companies to adopt social and pay transparency behaviors.

2. Pay transparency: Royal Decree 902/2020 and pay equality

The central specific instrument is Royal Decree 902/2020, of October 13, on pay equality between women and men, which develops art. 28 ET reformed by Royal Decree-law 6/2019, of March 1.

Based on these norms, MITES assumes the following main competencies in pay transparency:

  • Normative development: the Ministry proposes and the Government approves the regulatory development of the principle of pay equality (art. 28 ET and RD 902/2020), establishing:
    • The mandatory pay register for all companies (RD 902/2020, arts. 5 and following).
    • The minimum content and format of pay audits in companies that must have an equality plan.
    • Criteria for job evaluation from a gender perspective and transparency requirements in pay systems.
  • Organization and management of registries: in coordination with the Ministry responsible for equality, Labor is responsible for the registration and deposit system of:
    • Equality plans and their diagnoses, which include pay transparency measures (connection with Royal Decree 901/2020 on equality plans and the REGCON registry).
    • Certain pay information that is part of the documentation that may be requested by the labor authority and Inspectorate.
  • Definition of technical criteria: RD 902/2020 refers to guides and technical tools (standard registry tables, job evaluation methodologies, etc.) whose preparation is coordinated by MITES, so that companies comply with the pay transparency obligation uniformly.
3. Effective equality and collective bargaining

The Organic Law 3/2007, of March 22, for effective equality between women and men establishes in its arts. 45 and following the obligation to prepare equality plans in certain companies and guides collective bargaining to integrate equality and pay transparency clauses. RDL 6/2019 strengthens these obligations and modifies art. 28 ET to expressly introduce:

  • The principle of equal pay for work of equal value.
  • The requirement that companies have pay registers disaggregated by sex that can be consulted by the workers' representation.

The Ministry of Labor, through the Directorate General of Labor, has here a key role of:

  • Interpretation and application of pay equality regulations in the approval and registration of collective agreements, vetoing clauses with manifest pay discrimination.
  • Promotion of collective bargaining to introduce more transparent and gender-neutral professional classification and pay systems.
4. Supervision, inspection, and sanction: Law 23/2015

Law 23/2015, of July 21, organizing the Labor and Social Security Inspection System, assigns the Inspectorate — an autonomous body attached to the Ministry of Labor — functions of:

  • Monitoring and enforcement of labor and Social Security regulations, including pay equality and non-discrimination (arts. 2 and 12).
  • Advice and information to companies and workers about their rights to information, consultation, and pay transparency.
  • Issuance of infringement and settlement reports when it detects pay discrimination or non-compliance in registries and audits (art. 13 and related, in connection with LISOS).

In practice, this means that the Ministry, through the Inspectorate, can:

  • Request companies’ pay register and supporting documentation to verify the absence of discrimination.
  • Order the correction of unjustified pay gaps and propose sanctions if not remedied.
  • Prioritize specific inspection campaigns on pay transparency and equality plans, included in their strategic plans.
5. Technical support function and promotion of a culture of transparency

Finally, both Organic Law 3/2007 and RD 902/2020 itself and the Inspectorate’s strategic plans recognize MITES a function of promotion, training, and guidance:

  • Preparation of practical guides, technical criteria, and FAQs on pay registers, pay audits, and job evaluation systems.
  • Collaboration with social agents in awareness and dissemination campaigns on equality and pay transparency.
  • Integration of the equality and transparency perspective in the annual planning of the Inspectorate, directing action towards sectors and companies at higher risk.

Overall, the legislation configures the Ministry of Labor as the center of design, control, and support of the labor transparency system in Spain, with the Labor Inspectorate as the executing arm and collective bargaining as an essential lever for that transparency to materialize in companies.

What legal requirements must companies meet to inform workers about the use of algorithmic systems in labor decision-making?

In Spain, the obligation to inform workers about the use of algorithmic systems in labor management mainly rests on the Workers' Statute (ET) as amended by Law 12/2021 on digital platforms, and on data protection regulations: Regulation (EU) 2016/679 (GDPR) and Organic Law 3/2018, on Personal Data Protection and guarantee of digital rights (LOPDGDD).

Since the reform introduced by Law 12/2021, the revised text of the Workers' Statute Law (Royal Legislative Decree 2/2015) provides, in its article 64.4 and in a specific additional provision on digital platforms, a reinforced right of information for the legal representation of workers (RLT) about algorithms or artificial intelligence systems that affect working conditions, access and maintenance of employment, and profiling. This reform is part of the so-called “Rider Law” to guarantee algorithmic transparency in platform work.

On the other hand, the LOPDGDD develops the GDPR regarding information to data subjects. The consulted fragments of the law state that, when data are obtained from the data subject, the controller may fulfill the information duty of article 13 of the GDPR by providing “basic information” that must include at least:

  • Identity of the data controller and, if applicable, their representative.
  • The purpose of data processing.
  • The possibility to exercise the rights recognized in articles 15 to 22 of the GDPR.

The LOPDGDD adds that if data will be used for profiling, this circumstance must be explicitly stated, and indicates that the data subject must be informed of their right to object to automated individual decisions producing legal effects concerning them or significantly affecting them similarly, according to article 22 of the GDPR. This directly connects with the use of algorithmic systems in labor decisions (e.g., shift assignment, performance evaluation, or dismissal decisions based on automatic scores).

a) Individual information to each affected worker

When a company uses algorithmic systems that process personal data of workers, it must comply with the information duties of the GDPR and the LOPDGDD. In practice, this requires providing, clearly and accessibly, at least:

  • Who is the data controller (the company or, if applicable, the group) and for what the system is used (e.g., managing shifts, assigning orders, evaluating performance).
  • That data will be used for profiling or automated decisions, when applicable.
  • What rights the worker can exercise: access, rectification, erasure, restriction, portability, objection, and specifically, the right not to be subject to solely automated decisions with significant legal effects, as well as to request human intervention, express their viewpoint, and challenge the decision (article 22 GDPR).

This information must be provided at the time of data collection or, if data come from other sources, within the deadlines of article 14 of the GDPR, and remain permanently available (e.g., in easily accessible internal privacy policies).

b) Collective information to the RLT or unions

The Workers' Statute, after its amendment by Law 12/2021, recognizes the legal representation of workers the right to receive information about the parameters, rules, and instructions on which algorithms or artificial intelligence systems affecting:

  • Working conditions.
  • Access and maintenance of employment.
  • Profiling of workers.

This obligation is especially intense in the field of digital delivery platforms, where the specific additional provision of the ET requires informing about the systems organizing work (order assignment, scoring, account deactivations, etc.). Information to the RLT must go beyond a generic notice and allow understanding the essential criteria of system operation, its potential impact on the workforce, and discrimination risks.

c) Automated decisions with legal or similar effects (GDPR)

When an algorithmic system makes “purely automated” decisions with legal effects on the worker (e.g., contract termination, denial of promotion) or similarly significant effects, the guarantees of article 22 of the GDPR and its development in the LOPDGDD are activated:

  • Right to be informed of the existence of such decisions and their general logic.
  • Right to human intervention by the employer.
  • Right to express their viewpoint and challenge the decision.

In summary, companies using algorithms or AI systems in labor management must combine the labor transparency obligations of the Workers' Statute (article 64.4 and additional provision on digital platforms) with the information duties and safeguards against automated decisions provided in the GDPR and LOPDGDD, both individually and collectively.

Could you specify exactly what article 64.4 of the Workers' Statute says about algorithmic transparency? What additional best practices do you recommend to a company, beyond the legal minimum, to inform about its labor algorithms? How are these obligations being applied in practice in the delivery platform sector in Spain?

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What information must companies now provide to workers before starting the employment relationship according to the new decree?

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What particularity does the decree establish for contracts of fishermen and seafarers?

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How must information be delivered to workers according to the decree if an electronic format is used?

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