A company’s human resources management cannot be limited to preparing monthly paychecks or processing Social Security enrollments and terminations. In an increasingly demanding regulatory environment, labor obligations have become a critical area of compliance, with a direct impact on legal certainty, internal organization, and companies’ financial exposure.
In 2026, companies must pay special attention to the proper application of labor regulations, the review of their contracts, the recording of working hours, ensuring that wages comply with the collective bargaining agreement and the minimum wage, Social Security contributions, equality policies, LGBTQ+ measures, occupational risk prevention, and internal documentation related to employee relations.
A preventive labor audit helps identify errors before they lead to penalties, wage claims, social security contribution adjustments, or labor disputes. For this reason, the start of the fiscal year is an especially good time to assess whether the company is properly complying with its key labor obligations.
Why It’s Important to Review Employment Obligations in 2026
Spanish labor laws have undergone significant changes in recent years, covering areas such as hiring practices, working hours, equality, social security contributions, occupational safety, and workers’ rights.
In addition, regulatory inspections are increasingly focused on verifying not only the formal existence of certain documents, but also their effective implementation within the company. In other words, it is not enough simply to have contracts, records, or protocols; they must be properly drafted, up to date, and aligned with the organization’s day-to-day operations.
Poor labor management can lead to significant financial liabilities. These include administrative penalties, wage disputes, social security contribution surcharges, claims for overtime pay, disputes arising from incorrect job classifications, and liabilities related to occupational safety and health.
On the contrary, effective workforce management allows a company to operate more safely, reduce risks, and anticipate potential issues.
Key labor obligations that companies should review in 2026
1. Employment Contracts and Types of Employment
One of the first things any company should review is whether its employment contracts comply with current regulations.
Following the labor reform, permanent employment contracts have become the general rule, while temporary contracts are now limited to specific circumstances and must be duly justified. Therefore, it is essential to determine whether existing temporary contracts are based on a valid legal ground and whether that ground is properly documented.
In particular, the following should be reviewed:
- whether the type of contract used is appropriate;
- whether the reason for the temporary nature has been correctly identified;
- whether there is a match between the purpose of the contract and the actual nature of the position;
- whether the time limits have been observed;
- if there has been an irregular chain of contracts;
- whether part-time contracts accurately reflect the agreed work schedule;
- whether fixed-term seasonal contracts are being used appropriately.
Improper use of temporary contracts may result in the contract being deemed permanent, in addition to potential penalties from the Labor Inspectorate.
2. Time tracking and work time monitoring
Work hour tracking remains one of the most important issues in labor law. All companies must have a system in place to track employees’ work hours on a daily basis, including the specific start and end times.
It is not enough to simply have a formal record-keeping system. The records must be reliable, objective, accessible, and consistent with the actual provision of services. Furthermore, they must be retained for the legally required period and made available to employees, their legal representatives, and the Labor Inspectorate.
In 2026, companies should pay particular attention to:
- if all employees correctly record their working hours;
- if there are differences between the contracted working hours and the actual hours worked;
- whether any unreported overtime is being worked;
- whether the recording system is reliable and cannot be altered unilaterally;
- whether middle managers also comply with the reporting requirements;
- whether there is consistency between the time records, contracts, pay stubs, and the company’s internal policies.
Inconsistencies in this area can lead to claims for overtime pay and administrative penalties.
3. Wages, Collective Bargaining Agreements, and the Minimum Wage for 2026
The salary review is another key item on the 2026 HR checklist.
Employers must ensure that the wages paid to their employees comply with the applicable collective bargaining agreement, the relevant job category or occupational group, and, in any case, the current minimum wage.
In 2026, the minimum wage has been set at €1,221 per month, paid in 14 installments, equivalent to €17,094 per year, effective January 1, 2026. Therefore, it is essential to review whether any employees fall below this threshold, particularly in the case of full-time contracts, part-time positions, employees with absorbable supplements, or roles with compensation close to the legal minimum.
You should also check:
- whether the correct collective bargaining agreement is being applied;
- whether the salary scales are up to date;
- whether the assigned job category corresponds to the actual duties;
- whether the salary supplements are set up correctly;
- whether there are differences between base pay, bonuses, voluntary allowances, and non-wage benefits;
- whether special payments, contractual bonuses, and salary adjustments are being honored.
Incorrect application of the collective bargaining agreement can result in wage discrepancies that accumulate over several fiscal years, posing a financial risk to the company.
4. Payroll and Social Security contributions
Accurate payroll processing and contribution calculations are a fundamental requirement, but they are also one of the areas where the most errors occur.
In 2026, companies must pay special attention to contribution bases, the Intergenerational Equity Mechanism, and the additional solidarity contribution for compensation exceeding the maximum base.
The general maximum contribution base for 2026 is set at €5,101.20 per month, and the MEI rate is 0.90%. In addition, companies with employees earning wages above the maximum base must assess whether the additional solidarity contribution applies.
In this regard, it is advisable to review:
- whether all compensation items have been correctly reported for social security contributions;
- whether there are any items that have been improperly classified as non-wage benefits;
- whether the contribution bases are correct;
- if the contribution rates are applied correctly;
- whether back pay is being properly settled;
- whether allowances, expenses, bonuses, or variable pay are properly documented;
- whether the additional contribution applicable to high salaries has been taken into account.
Errors in reporting contributions may result in adjustments, surcharges, interest, and penalties.
5. Equality plans, pay records, and equality policies
Equality obligations are playing an increasingly important role in corporate human resources management.
Covered companies must have an equality plan that has been negotiated, registered, and effectively implemented. Generally speaking, this requirement applies to companies with 50 or more employees, although it may also stem from the applicable collective bargaining agreement or a specific requirement from the labor authority.
In addition, all companies should pay attention to the pay report, which allows them to analyze their workforce’s salary data from the perspective of gender equality.
In 2026, it would be advisable to review:
- whether the company is required to have an equality plan;
- whether the plan is in effect, registered, and up to date;
- whether the planned measures are actually being implemented;
- whether the payroll record has been prepared correctly;
- whether there are wage differences that need to be justified;
- whether the recruitment, promotion, and training processes are consistent with equality policies.
Failure to maintain the required documentation or keeping it out of date can result in penalties and negatively impact the company’s internal and external image.
6. LGBT policies and internal protocols
In addition to traditional obligations regarding equality, companies must take into account measures related to equality and non-discrimination for LGBT individuals.
Royal Decree 1026/2024 sets forth a comprehensive set of measures to promote equality and prevent discrimination against LGBTI individuals in the workplace. This is particularly relevant for companies with more than 50 employees, which are required to have specific measures and protocols in place to address harassment and violence.
At this point, it is a good idea to review:
- whether the company is required to implement LGBTI measures;
- whether such measures have been negotiated in accordance with the applicable procedure;
- whether there is a policy in place for dealing with harassment or violence;
- whether the staff is aware of these protocols;
- whether internal policies regarding hiring, promotion, training, and workplace relations have been adapted.
These obligations should not be viewed as a mere paperwork formality, but rather as part of the company’s labor compliance system.
7. Occupational Safety and Health
Occupational safety and health remains one of the areas with the greatest impact in terms of corporate responsibility.
All companies must have a preventive program tailored to their specific activities, assess existing risks, and take the necessary measures to protect the health and safety of their employees.
A performance review in 2026 should assess:
- whether the risk assessment is up to date;
- whether the specific risks associated with each position have been reviewed;
- whether the staff’s safety training is up to date;
- whether protective equipment has been provided when necessary;
- whether health monitoring is in place where appropriate;
- whether the preventive measures have been properly documented;
- whether psychosocial, ergonomic, and organizational risks have been taken into account.
Failures in occupational safety and health measures can result in administrative penalties, increased social security contributions, civil liability, and even criminal liability in the most serious cases.
8. Telework, remote work, and digital detox
Remote work has become the norm in many companies, but it is not always managed properly from an employment perspective.
Remote work has become the norm in many companies, but it is not always managed properly from an employment perspective.
By 2026, companies should verify:
- whether there are employees who regularly work remotely;
- whether any remote work agreements have been signed;
- whether the associated resources and expenses have been properly managed;
- whether the time tracking system also works remotely;
- if the right to digital disconnection is respected;
- whether internal policies allow for the use of devices, digital tools, and communications outside of working hours.
A poorly defined telework policy can lead to labor disputes and financial claims.
9. Internal policies and employment documentation
In addition to the obligations expressly set forth in labor regulations, companies must maintain consistent and up-to-date internal documentation.
The documents you should review include:
- procedures for workplace harassment, sexual harassment, or harassment based on gender;
- LGBT protocols, where applicable;
- digital detox policies;
- internal codes of conduct;
- IT usage policies;
- non-disclosure agreements;
- data protection provisions in the workplace;
- documentation related to risk prevention;
- internal communications regarding schedules, vacations, leave, and remote work.
A lack of documentation or the presence of outdated documents can weaken the company’s position in the event of an inspection or a labor claim.
Failures in this area can result in not only administrative liability, but also civil and even criminal liability in certain cases.
Common risks in human resources management at work
Many companies fail to comply with regulations not because they deliberately intend to violate them, but because they have failed to review or update their internal procedures.
Among the most common risks are:
- temporary contracts without sufficient justification;
- workers performing duties beyond their professional category;
- incorrect application of the collective bargaining agreement;
- pay stubs with incorrectly configured pay items;
- unrecorded or unpaid overtime;
- incomplete or unreliable time records;
- equality plans that have not been registered or implemented;
- lack of mandatory protocols;
- shortcomings in occupational safety and health;
- teleworking without a written agreement or without sufficient regulations;
- lack of oversight regarding leave, vacations, and breaks.
These risks may remain hidden for months or years, until an inspection, an individual complaint, or a labor dispute arises.
Preventive employment reviews as a tool for legal certainty
The best way to avoid labor penalties is not to wait until an inspection or complaint has already been filed, but to periodically review the company’s situation.
A preventive labor audit or review makes it possible to identify issues, correct documentation, adjust contracts, update internal policies, and assess potential financial risks before they become a problem.
This approach is particularly recommended for companies that:
- have expanded their workforce in recent years;
- use temporary or fixed-term contracts;
- have part-time employees;
- apply complex collective bargaining agreements;
- receive variable compensation, bonuses, or per diems;
- have employees working remotely;
- have more than 50 employees;
- have not recently reviewed their internal protocols;
- have received notices or actions from the Labor Inspectorate.
A preventive review should not be viewed as a cost, but rather as an investment in legal certainty, organizational stability, and risk management.
Conclusion: Being proactive is the best way to avoid penalties
Compliance with labor obligations in 2026 requires proactive, well-documented management tailored to the specific circumstances of each company.
Contracts, wages, social security contributions, working hours, equality, LGBTQ+ policies, risk prevention, teleworking, and internal policies are all part of a single labor compliance system that must be reviewed periodically.
Companies that anticipate these risks not only reduce their exposure to penalties, but also improve their internal organization, boost employee confidence, and operate with greater legal certainty.
In an increasingly regulated workplace, reviewing a company’s labor obligations today can help prevent significant problems down the road.
At Godia Tax Advisors, we help companies and business groups review their employment situation, identify potential risks, and implement preventive measures tailored to their structure, operations, and workforce.