Royal Decree 723/2026 of 9 September extends the information obligations that companies have regarding working conditions and introduces, among its new features, a specific duty to report on the existence and, in certain cases, the operation of algorithmic or automated decision-making systems. The regulation was published in the Official State Gazette (BOE) on 15 September 2026 and came into force on 5 October 2026. It partially transposes Directive (EU) 2019/1152 and replaces the previous Royal Decree 1659/1998.
The Royal Decree implements Article 8.5 of the Workers' Statute and sets out, in general terms, the information the company must provide in writing on the essential elements of the contract and the main conditions under which the work is performed. Its Chapter II applies to employment relationships lasting more than four weeks, without prejudice to the specific rules provided for certain employment relationships and groups.
Among the information to be provided is the existence of algorithmic or automated decision-making systems. Where they are used to take decisions on the determination, setting, variation or modification of working conditions, the information must also include their parameters, criteria and operating rules.
Which systems are affected?
Article 3.2.k) of the Royal Decree expressly refers to algorithmic or automated systems used to take decisions on working conditions.
The regulation itself mentions, among other areas: [DESPLEGABLE]
- Duration and distribution of working time;
- Task assignment;
- Determination of salaries;
- Career progression;
- Place of work;
- Termination of the employment contract.
The obligation operates on two levels. The company must report the existence of algorithmic or automated decision-making systems and, when these are used in the areas indicated, must also report the parameters, criteria and rules that determine how they operate.
The wording used by the regulation is significant because it does not limit this obligation to artificial intelligence systems. Therefore, before ruling out a tool, it will be necessary to analyse what role it actually plays and whether it intervenes in decisions on working conditions.
The preamble of the Royal Decree itself links this new obligation to the European Artificial Intelligence Regulation and, in particular, to its provisions on certain systems used in the employment context.
What information must the company provide?
Where Article 3.2.k) applies, identifying the tool will not be enough. If the system is used to take decisions on the working conditions mentioned in the regulation, information must be provided on its parameters, criteria and operating rules.
The Royal Decree does not set out more detailed content for this provision, nor does it allow this information to be replaced by a generic reference to legislation or to the collective agreement. The possibility of cross-referencing under Article 3.3 covers certain points of Article 3.2, but does not include point k).
From a practical perspective, each system will need to be reviewed individually to determine what information sufficiently explains the parameters, criteria and rules involved in the decision. The purpose of this review should not be to give the employee a technical description of the tool, but to explain in an understandable way how it affects the employment decisions concerned.
This analysis should also cover systems supplied by third parties or deployed at group level when the company uses them to take the decisions covered by the regulation. In such cases, it will be advisable to review agreements with providers or intra-group arrangements to check that the company has the information it needs to meet its own obligations.
When must the information be provided?
For new employment relationships, the information set out in Article 3 must be provided before they begin.
The situation is different for employment relationships already in force on 5 October 2026. In these cases, the sole transitional provision establishes that the company must provide the information to the employee when they request it, provided they do not already have it. The deadline for responding is 30 working days from receipt of the request.
Therefore, for these existing relationships, the Royal Decree does not establish a general obligation to resend all the Article 3 information to the workforce on the company's own initiative. It must be provided when requested, on the terms set out in the transitional provision.
Where, after the regulation comes into force, there is a change to the information that must be communicated, the company must inform employees as soon as possible and, at the latest, on the date the change takes effect.
How must it be communicated?
The information must be provided in writing, in one or more documents, where it is not already included in the employment contract held by the employee.
It may be provided on paper or in electronic format, but the medium chosen must make the information accessible, allow it to be stored and printed, and enable the company to keep proof of its transmission or receipt.
This last requirement has a practical consequence. It is not enough to produce the document: the company must be able to prove that the information has actually been transmitted or received. For this reason, if an intranet or corporate platform is used, it will be advisable for the system to leave an individual record of the information being made available or received.
The Royal Decree also introduces a specific provision for employees with disabilities or borderline intellectual functioning. In these cases, the company must ensure that the information is accessible and understandable.
The new obligation coexists with other information rights
Compliance with the Royal Decree does not replace other applicable employment obligations. Article 8 expressly states that these provisions apply without prejudice to the information rights of employee representatives and to the obligations under the Workers' Statute regarding contract modifications.
This coordination is particularly important with regard to algorithmic transparency. The information right of employee representatives already has its own framework and case law has reinforced its relevance. In particular, a judgment of the National High Court (Audiencia Nacional) of 4 July 2025 held that failing to give trade union representatives information on the parameters, rules and instructions of algorithms used to set certain working conditions infringed freedom of association.
This review should not be carried out in isolation from data protection legislation where the operation of the system involves processing of personal data, profiling or automated decisions.
Regulation (EU) 2024/1689 on Artificial Intelligence
It establishes a specific regime for certain AI systems and takes a risk-based approach. The preamble of RD 723/2026 itself links the new information obligation to several provisions of this Regulation and to point 4(b) of its Annex III.
It is advisable, however, to keep the two analyses separate: an automated system subject to the duty to inform under RD 723/2026 is not necessarily an AI system and is not automatically classified as a high-risk system under the AI Regulation.
In addition, the European framework was amended in 2026 by Regulation (EU) 2026/1744, so any assessment of the obligations and application deadlines of the AI Regulation must be made in accordance with its current version.
What should companies review now?
Adaptation can be approached through six actions:
Locate the algorithmic or automated tools involved in people management and determine which decisions they support.
Check whether the system takes part in decisions on working time, task assignment, pay, career progression, place of work or termination of employment, which are the situations expressly mentioned in Article 3.2.k).
Distinguish between the duty to report the existence of the system and the cases in which its parameters, criteria and operating rules must also be explained.
The information set out in Article 3 must be provided before new employment relationships within the scope of the regulation begin
The company must be in a position to handle employees' information requests within the 30 working days set out in the sole transitional provision.
Changes must be communicated as soon as possible and, at the latest, on the date they take effect. In addition, the company must keep proof of transmission or receipt when using electronic means.
This review requires knowing not only which tools the company uses, but also which decisions they make or influence and on what criteria. To do this, Human Resources will need sufficient information from the areas responsible for technology and, where appropriate, from external providers.
