Digital time tracking: where regulation is heading

Digital time tracking has been part of companies’ labour obligations for years. Its aim is to reduce fraud in overtime and guarantee the right to digital disconnection. However, far from being a settled issue, it continues to evolve from both a practical and legal perspective.

Rather than facing a new obligation, companies are currently in a period of reviewing their systems and adapting to an environment where working time control is becoming increasingly relevant, especially in remote working and hybrid models.

A well-established framework with room for development

Since 2019, under Royal Decree-Law 8/2019, all companies have been required to record their employees’ working hours. This obligation was designed with a certain degree of flexibility, leaving room for collective bargaining to determine how it should be applied in each sector or company.

However, the subsequent development of time tracking has raised an important debate: to what extent this control should be standardised and digitalised without losing that initial flexibility.

Digitalisation yes, but with nuances

The trend towards digital systems is clear. They improve traceability, prevent manipulation and facilitate access to information in the event of an inspection.

However, this process also poses significant challenges, especially for SMEs and organisations with less digitalised structures. Implementing more sophisticated systems requires:

• Investment in technological tools.
• Adaptation of internal processes.
• Team training.

For this reason, one of the key issues being considered is the need for gradual implementation adapted to business realities, avoiding overly rigid solutions.

 

I need help implementing working time tracking in my company

 

The balance between control and flexibility

Time tracking not only serves a working time control function, but also plays a relevant role in remuneration matters, especially in relation to overtime.

However, excessive rigidity in its application can lead to unwanted effects, such as limiting flexibility in work organisation or increasing control over working hours.

That is why one of the main challenges is finding a balance between:

• Ensuring compliance with regulations.
• Preventing overtime fraud.
• Maintaining a degree of flexibility in working time management.

The role of collective bargaining

One of the key elements of the current model is the role of collective bargaining in regulating time tracking.

Collective agreements make it possible to adapt the rules to the characteristics of each sector or activity, which is particularly relevant in highly diverse environments.

In this regard, any evolution of the system should take this diversity into account and avoid overly uniform approaches that do not reflect business realities.

What companies are reviewing today

In practice, beyond the regulatory debate, companies should focus on reviewing whether their systems meet current requirements. The most relevant aspects remain:

• The reliability of the records.
• The impossibility of later manipulation.
• Data traceability.
• Proper retention of information.
• Accessibility in the event of an inspection.

This is where many traditional systems (paper, Excel) show their main weaknesses.

Remote access for the Labour Inspectorate

The Labour Inspectorate has increased its focus on time tracking, not only verifying its existence but also assessing its quality.

The Labour Inspectorate may now request remote access to time records. This will allow information to be reviewed without the need for on-site visits and inspections to be carried out more quickly. In addition, records must be kept for four years, facilitating retrospective inspections.

Penalties for non-compliance

Strengthening time tracking also means greater scrutiny of companies that fail to comply with the rules. Infringements may result in penalties of up to €10,000 per employee, particularly for:

• absence of time tracking
• unreliable systems
• manipulation of records
• failure to retain information

Frequently asked questions

Do all companies have to record working hours?

Yes. This obligation applies to all companies, regardless of their size or sector.

Is any time tracking system valid?

It must guarantee the integrity, traceability and accessibility of the information. Not all systems meet these requirements.

How long must records be kept?

The minimum retention period is four years.

How Adlanter can help

At Adlanter, our labour advisory experts help companies adapt their systems to labour regulations and digitalise time tracking. We assess compliance, identify risks and propose solutions that work in hybrid environments, helping avoid penalties and ensuring proper working time management.