Penalties for non-compliance are also significantly toughened: a new sanctioning regime has been proposed that foresees fines of up to €10,000 for each affected worker, instead of a single fine per company as before (previously the maximum was €7,500 for a global infringement). In this context, self-employed people with staff and small and medium-sized enterprises (SMEs) must understand these new requirements well to avoid costly employment penalties and adapt to them as soon as possible.
New legal requirements in the control of working hours
The new mandatory digital time recording regulations introduce several obligations for all companies, regardless of size. Below we highlight the key points that you need to know to ensure legal compliance and avoid fines for non-compliance with work:
- 100% digital filing: Paper sheets and Excel files are prohibited for time control. From now on, only digital systems that eliminate paper records and guarantee objective and reliable data are accepted. This measure seeks a more transparent and efficient work environment, where errors and manipulations of recorded times are reduced.
- Immediate and personal registration: Each worker must sign in personally “immediately at the beginning and end of each workday”. This means that each entry and exit (and not the management) is recorded by the employee in real time, without delay. All interruptions that affect the calculation must also be recorded, such as lunch breaks or rest periods. This ensures that the record reflects the time actually worked and leaves no room for manipulation. The records must be traceable and authentic, unambiguously identifying each employee and with a reliable time stamp.
- Remote accessibility for inspections: The digital time control system must allow the Labour Inspectorate to access it remotely at any time. It will no longer be enough to have the records in a filing cabinet in the office: inspectors will be able to review them online in a quick manner, which speeds up and makes labour audits more effective. In fact, the record must be interconnected with the Inspectorate so that it can consult it without prior notice. This accessibility also extends to the workers themselves and their legal representatives, to whom the recorded information must be made available to guarantee transparency. For example, it is advisable to provide periodic summaries of the hours to each employee or at least have a system where they can consult their working hours, as required by current regulations.
- Conservation and reports: The company must keep the records for a minimum of 4 years. In addition, the new digital systems usually generate reports detailing the ordinary and overtime hours of each worker. The regulations even provide that monthly records can be given to workers and their Legal Representation, to facilitate control and mutual verification of the hours worked. Taken together, these measures ensure that there is a complete history of the working day for any future review.
- Tougher penalties for non-compliance: As we have mentioned, not correctly recording the working day is now considered a serious infraction and the fines are significantly increased, reaching up to €10,000 in the most serious cases. In addition, they will be applied for each affected employee, so a company with several workers without registration could have to pay a multiplied penalty. This change multiplies the economic risk of non-compliance, so adapting to the new standard is not only a legal but also a financial issue. It should be remembered that since 2019 the Labor Inspectorate has already sanctioned thousands of companies for irregularities in time recording, and now it wants to “set the counter to zero” by demanding a modern system that makes fraud more difficult.
Why will a manual record no longer be enough?
Before the reform, many SMEs kept track of time in a simple way: signed sheets, paper templates or an Excel file where the employee wrote down their hours. This will no longer be valid or sufficient. The regulations make it clear that the record must be made using digital means, eliminating manual systems that are easily altered or without traceability. Therefore, goodbye to paper and “signing in Excel”: companies that still use these tools will have to migrate to approved digital solutions.
There are several reasons why manual timekeeping is discarded. First, a spreadsheet or paper document does not guarantee the integrity of the information: they can be manipulated (for example, modifying hours a posteriori) or even lost, which prevents proving the actual working day. On the other hand, a digital system provides authenticity and security: each timekeeping is recorded with the employee's identifier, the exact time and without the possibility of alteration once made. It also allows complete traceability: if there is any amendment or incident (for example, correcting an error), there is a trace of who made it and when, ensuring the transparency of time management.
Furthermore, with a manual record, the requirement of immediate remote access for inspection cannot be met. Imagine an inspector asking for the timekeeping: if they are on paper, they will have to be sent or wait for the visit, slowing down the process. With a digital system connected online, the Inspectorate can check the hours in real time, which speeds up the reviews and puts pressure on the company to record well every day. In short, manual working time control is no longer sufficient or legal: you need appropriate software that ensures all the requirements (immediacy, reliability, accessibility) and removes the risk of sanctions.
Timenet: the digital solution to comply with regulations and avoid sanctions
A digital time registration system like Timenet allows employees to easily log in from any device (computer, mobile or tablet), offering real-time control of the working day.
Timenet is software designed for SMEs and the self-employed that has been specifically designed for digital time registration and control of each employee's working day in a simple and efficient way. It is a 100% digital tool that meets the new legal requirements point by point, helping companies adapt to regulations without complications. With Timenet, a small company can digitize its timesheets in no time and have the peace of mind that it is up to date in labor matters.
Among the benefits of Timenet are:
- Easy implementation: It is a lightweight and easy-to-implement solution that does not require complex infrastructure or large initial investments. Even SMEs without their own IT department can get it up and running quickly.
- Flexibility: It is suitable for any work model – whether in person at the office, teleworking from home or hybrid environments – and for all types of sectors. Each employee can easily clock in and out from their device, even if they are away from the work center.
- Total control in real time: The system automatically records all the hours of entry, exit and breaks of each worker's day. Managers can see instantly who is working, how many hours they have been working, if they have taken a lunch break, etc. This allows for efficient management of shifts, overtime and absenteeism, ensuring optimal control of working hours.
- Guaranteed regulatory compliance: Timenet is adapted to current legal requirements, including the new requirements for digital registration. The system guarantees the authenticity and traceability of each timesheet (each user has their own personal access) and applies security and data protection standards. In this way, the company avoids risks and penalties for non-compliance, since all time management is aligned with the regulations.
- Reports and transparency: The platform generates detailed reports of each employee's workday, with the count of ordinary and overtime hours, breaks taken, etc. These reports can be easily obtained monthly or in the period of interest, and given to workers if desired. Timenet also automatically stores all data for at least 4 years, as required by law, to facilitate possible labor inspections. Everything is recorded in a secure and accessible way, providing transparency for both the company and the employees.
Overall, Timenet provides SMEs with a comprehensive tool to ensure legal adaptation to the working day without headaches, making it easier for SMEs and the self-employed to successfully comply with the new time registration regulation. With this solution, small businesses can keep up with the regulations much more easily, avoiding unintentional errors and, above all, avoiding unnecessary labor sanctions. In an environment where mandatory digital time recording is already a reality, having a system like Timenet allows the employer to focus on their business with the peace of mind of having the time control under control and in order. Fines for non-compliance are no longer a threat, because with good software for SMEs like Timenet, compliance is guaranteed and the Labor Inspectorate will have all the information at its disposal in a clear and legal manner.
In short, adapting to digital time recording is currently an unavoidable obligation for any SME or self-employed person with employees. But thanks to tools like Timenet, this legal adaptation can be done quickly, economically and efficiently, turning a potential problem (avoiding sanctions) into an opportunity to improve internal organization and work time management.