Key developments that reshape labour management

April comes with important changes in labour law: increased requirements on pay transparency, correction of restrictive benefit criteria and new rules on predictability of working conditions.

Key novelties of the Royal Decree on labour transparency

The recent case law of the Supreme Court and the latest regulatory reforms define a new framework that directly affects payroll, incentives, leave, working hours and work-life balance, with an immediate impact on labour and human resources management.

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Supreme Court reinforces transparency in pay slips

The Supreme Court, in its ruling of 24 March 2026, confirms the employer's obligation to ensure that pay slips enable the worker to understand in a real and effective manner the origin, calculation and amount of each wage concept.

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Key novelties of the Royal Decree on labour transparency

The Royal Decree adopted on 19 March 2026 partially transposes Directive (EU) 2019/1152 and significantly strengthens the right of workers to clear, complete and accessible information on their working conditions from the beginning of the employment relationship.

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Invalidity of clauses in bonus schemes: limits to corporate power

Ruling 165/2026 of the Supreme Court clearly delimits the legal limits in the design of variable remuneration systems, annulling clauses that conditioned the collection of the bonus to the absence of disciplinary sanctions and that allowed for its discretionary adjustment by the company.

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Paid leave and bonuses: the scope of "full pay".

Supreme Court Ruling 242/2026 clarifies the pay regime applicable during paid leave, stating that the inclusion of job-related allowances depends on the provisions of the collective agreement.

Upcoming webinars | Countdown to Pay Transparency

Webinar series by Taylor Wessing (TW)

Europe is entering a new era of pay transparency with the EU Pay Transparency Directive, which must be implemented by all Member States by 7 June 2026.

This two-part webinar series, organised by Taylor Wessing, offers a practical and comparative perspective to help companies understand the new requirements and prepare for the upcoming compliance landscape.

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12 May 2026 | 16:00 - 17:00 (CEST)

Session 1

Countries covered: Austria, France, Ireland, Italy, Poland and Slovakia

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27 May 2026 | 16:00 - 17:00 (CEST)

Session 2

Countries covered: Germany, the Netherlands, Portugal, Spain and the United Kingdom

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Insights from Laboral

In this section we compile all the insights from the Labour & Employment area, with clear and practical analysis of the latest rulings, regulatory reforms and trends that are transforming labour relations.

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