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From October 5, 2026, companies in Spain must inform each employee in writing of the algorithms involved in decisions that affect them. We review what the applicable labor and data protection regulations in Spain require.

The use of algorithms and artificial intelligence systems in people management is becoming increasingly widespread. Selection processes, assignment of shifts and tasks, performance evaluation, calculation of variable remuneration or detection of absenteeism risks are tasks that many companies entrust, totally or partially, to technological tools. This reality has led the legislator (national and European) to establish collective and individual information obligations, so that both employees and their legal representatives can know which algorithms or artificial intelligence systems the company uses that have an impact on labor relations, in the terms explained below.

a. Spanish regulation on algorithmic transparency

The right to information of the employees' legal representation

Law 12/2021, of September 28 (known as the Rider Law) introduced the obligation of companies to inform the legal representation of employees in article 64.4.d) of the Workers’ Statute. This article establishes the right of said representation to be informed by the company of “the parameters, rules and instructions on which artificial intelligence algorithms or systems that affect decision-making that may affect working conditions, access to and maintenance of employment, including profiling” are based.

Although the Rider Law was created to regulate the presumption of employment in the field of digital delivery platforms, this obligation to provide information is generally applicable to any company, in any sector, that uses automated systems with an impact on working conditions. 

Employees’ right to individual information

Spanish regulations have also created obligations for companies to inform each employee individually. Specifically, the new Royal Decree 723/2026, of September 9, transposing Directive (EU) 2019/1152 of the European Parliament and of the Council, of June 20, 2019, on transparent and predictable working conditions in the European Union, has introduced into labor legislation the express obligation of companies to inform employees with contracts of more than 4 weeks’ duration about algorithmic or automated systems, applicable from October 5, 2026. 

In particular, companies must disclose, in the employment contract or in a specific information document, “the existence of algorithmic or automated decision-making systems. The foregoing will include the guidelines, criteria and rules of operation of the aforementioned systems when they are used for decision-making regarding the determination, setting, variation or modification of working conditions, such as the duration and distribution of the working day, the assignment of tasks, the determination of wages, professional progression, the workplace or the termination of the contract”.

b. European regulation on algorithmic transparency

European Union law also has specific regulations on algorithmic reporting obligations. 

First, articles 13.2.f and 14.2.g of the General Data Protection Regulation (GDPR) require companies to disclose the “existence of automated decisions, including profiling”, and to provide “meaningful information on the logic applied, as well as the importance and expected consequences” of the processing for the employee. Moreover, Article 22 of this regulation recognizes the right not to be subject to decisions based solely on automated processing that produce legal or similarly significant effects, subject to limited exceptions and with safeguards such as the right to obtain human intervention, to express one’s own point of view and to challenge the decision. 

In addition, the Artificial Intelligence Regulation classifies as high-risk those systems used for the recruitment and selection of personnel and for making decisions on working conditions, promotions, termination of contracts, assignment of tasks or monitoring and evaluation of performance. For these systems, article 26.7 requires companies to inform the employees’ representatives and affected employees, before the system is put into service, that they will be subject to its use. This regulation also imposes human oversight and record-keeping obligations and, in certain cases, grants the affected person the right to obtain an explanation of the decision (article 86). [Note: The implementation of the obligations relating to high-risk systems has been postponed until December 2, 2027, by the Digital Omnibus Regulation on AI].

Finally, in the specific area of platform work, Directive (EU) 2024/2831 establishes a strengthened algorithmic management regime, which includes the duty to provide detailed information on automated monitoring and decision-making systems, the prohibition of processing certain categories of data, mandatory human oversight and review of relevant decisions and the right to obtain an explanation of decisions affecting employees. This directive must be transposed into the national laws of the Member States by December 2, 2026.

c. Practical Guides

Although they are not legally binding, it is advisable to be familiar with the guides and notes published by public bodies.

In May 2022, the Ministry of Labor and Social Economy published the Practical Guide and Tool on the Business Obligation to provide information on the use of algorithms in the workplace. Although it has not been updated since its publication, it offers guiding criteria on the content of this information: type of technology used, decisions in which it intervenes, degree of human intervention, training and operating data, logic and variables used, its weighting and the consequences that may arise for employees. The information must be understandable, so it is not enough to provide the source code or generic descriptions, although the company is not obliged to reveal trade secrets beyond what is necessary.

In turn, the Spanish Data Protection Agency published on October 7, 2026, the note Algorithmic systems in the workplace. Transparency and data protection guarantees, which analyzes Royal Decree 723/2026 and the Agency’s warning AI-00009-2026 concerning an AI tool for screening and scoring applications. The Agency recalls that these employment obligations do not displace the GDPR and specifies its requirements: to assess the risks and, where appropriate, to carry out an impact assessment before implementing the system, to apply data protection by design, to offer clear and understandable information and to guarantee effective human intervention, so that the reviewer can critically assess the score and depart from it. 

d. Recommendations 

Considering the current legal framework, for correct algorithmic management in the workplace, companies must: 

• identify which algorithmic or automated decision-making systems they use in people management and about which they must inform their employees and their legal representatives; 
• ensure that they have the necessary technical information to comply with their transparency obligations; 
• verify that they comply with these transparency obligations; and
• establish a protocol to guarantee compliance with information obligations, from a labor and personal data protection point of view.

Reporting on algorithms is not a mere formality: it is a prerequisite for ensuring that the use of technology in people management is compatible with employees’ rights and provides legal certainty to companies themselves. Furthermore, non-compliance with algorithmic transparency obligations can lead to administrative sanctions.