Summary of Key Court Decisions and Legislative Developments: Employment Conditions and Workers' Rights (September 2026).

Case Law Developments

Supreme Court Judgment of 23 June 2026 (Appeal No. 2521/2025)

The Supreme Court analysed a case in which an employee working at a dog-grooming salon challenged the disciplinary dismissal letter served on 17 July 2019. Simultaneously with the dismissal, the company acknowledged its unfairness and paid €1,708.20 as compensation. The employee sought a declaration that the dismissal was null and void due to a breach of her right to effective judicial protection under the guarantee of indemnity principle.

The Supreme Court confirmed the ruling of the High Court of Justice of Andalusia, Seville Division, declaring the dismissal null and void and ordering the employer to pay €6,250 in compensation for moral damages. The Court considered that the employee's disagreement with the employer's proposal to work on Saturdays, together with the close temporal link between that disagreement and the dismissal, constituted sufficient evidence of retaliation and therefore shifted the burden of proof to the employer.

Supreme Court Judgment of 1 July 2026 (Appeal No. 5468/2024)

The Supreme Court examined whether the standby duty of an ambulance driver operating under a vehicle-location system should be considered effective working time and therefore remunerated as overtime.

The Court held that, although the employee could remain at home, the obligation to stay near the ambulance and be ready to respond immediately to emergency calls significantly restricted his personal freedom. Consequently, the standby period qualified as effective working time and the company was ordered to pay the corresponding overtime compensation.

Supreme Court Judgment of 1 July 2026 (Appeal No. 131/2025)

In this case, the Supreme Court assessed the decision of the RACC Group to reduce the percentage of remote work enjoyed by employees with recognised disabilities from 100% to 75%.

The Court concluded that modifications affecting remote working arrangements are governed by Law 10/2021 on Remote Work, which requires individual written agreement with each affected employee. Accordingly, the modification was declared null only with regard to employees who had not individually consented to the change.

Supreme Court Judgment of 7 July 2026 (Appeal No. 197/2025)

The Supreme Court ruled on a challenge concerning changes introduced by Roche Diagnostics, S.L. to its commercial incentive programme.

The Court confirmed that the objectives affected by the amendments were individual rather than collective in nature. Therefore, the company was only required to carry out an information and consultation process with employee representatives and was not obliged to initiate a collective negotiation procedure. The Court further held that the amended incentive scheme did not constitute a substantial collective modification of working conditions.

Supreme Court Judgment of 9 September 2026 (Appeal No. 249/2025)

The Supreme Court analysed the consequences of an employer's failure to initiate the negotiation process required by Article 34.8 of the Workers' Statute following an employee's request for an adjustment of working hours to facilitate work-life balance.

The Court reiterated that this negotiation process is mandatory and not a mere formality. Where an employer fails to comply with this obligation, the employee's request should generally be granted unless it is clearly unreasonable or disproportionate. In this particular case, the Court upheld the employee's claim and confirmed the award of €7,501 in damages for the violation of his right to reconcile family and working life.

Legislative Developments

Royal Decree 723/2026 of 9 September, implementing Directive (EU) 2019/1152 on Transparent and Predictable Working Conditions

The purpose of this Royal Decree is to further develop Article 8.5 of the Workers' Statute regarding information on the essential elements of employment contracts and the principal conditions governing employment relationships, with a view to ensuring transparency and predictability in working conditions.

These obligations apply to employment relationships lasting more than four weeks.

The Royal Decree entered into force on 5 October 2026.

The main developments are as follows:

1. Information obligations and minimum content

Employers must provide employees in writing with information concerning the essential elements of the employment relationship and its principal conditions. This information must include, among other matters:

• The identity of the contracting parties.

• The start date of employment and, where applicable, the duration of the contract.

• The workplace and working arrangements.

• The duties to be performed.

• The applicable professional category or grade.

• The amount and components of remuneration, including the method for calculating variable pay.

• Working time arrangements, overtime, holidays and shift patterns.

• The duration of any probationary period.

• Training rights.

• The use of algorithmic or automated decision-making systems, where applicable, including their criteria and operating rules.

• The applicable equality plan, anti-harassment protocols and LGTBI equality measures, where available.

• The procedure for terminating employment.

• The applicable collective bargaining agreement.

• The social security management system and pension arrangements.

2. Information by reference to legislation or collective agreements

Certain information may be provided through references to applicable legal provisions or collective agreements, provided that such references are sufficiently clear and precise.

3. Work performed abroad

Employees assigned to work abroad must receive additional information regarding destination countries, duration of the assignment, payment currency, allowances, travel expenses and, where applicable, information required under EU posting-of-workers rules.

4. Information regarding changes

Any modification to the information previously provided must be communicated to the employee in writing. This requirement does not replace the statutory procedures governing modifications of working conditions.

5. Methods and deadlines for providing information

Information may be supplied in paper or electronic format, provided that it remains accessible, printable and storable, and that the employer retains proof of transmission or receipt. The information must generally be provided before the employment relationship begins.

6. Standard information template

The Ministry of Labour, through the Public Employment Service (SEPE), will publish a standard information model. Until such publication, employers must provide the required information using an appropriate written format.

7. Existing employment relationships

These obligations also apply to ongoing employment relationships. At the employee's request, employers must provide the relevant information within 30 working days, provided it has not already been supplied.

Other Developments

Royal Decree 416/2026 of 27 May, regulating flexible retirement and other aspects of combining retirement pensions with work

This regulation entered into force on 28 August 2026 and introduces a new framework for flexible retirement.

Its main features include:

• Flexible retirement may now be combined not only with part-time employment but also with self-employment activities, subject to certain conditions.

• When combined with self-employment, pensioners may receive 25% of their retirement pension.

• For part-time employment, working time must be between 33% and 80% of that of a comparable full-time employee.

• Additional incentives are granted where the compatibility between retirement and employment begins at least six months after retirement.

• Common rules are introduced for active, partial and flexible retirement schemes.

• The regime governing financial incentives for delayed retirement is also amended.