Spain approves new labour contract transparency law

The Council of Ministers has passed a decree requiring firms to detail pay structures, shift patterns and algorithmic decision-making.

The Council of Ministers has approved a royal decree to enhance transparency in labour contracts, transposing a European directive into law. The measure expands mandatory information requirements, forcing firms to detail base salaries and supplements separately.

Contracts must now specify payment methods, workday distributions, and night shift details. Crucially, employers must disclose any algorithmic systems used for decisions on pay or termination, while trial periods exceeding six months now require justification.

Following requests from SMEs, a 20-day implementation margin applies after publication in the BOE. Existing staff may request missing details, which firms must provide within 30 days, ensuring all workers benefit from these updated transparency standards.


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