The proposal to reduce the maximum working hours from 40 to 37.5 hours per week without a pay cut has encountered a major obstacle in Congress and, in practice, has been blocked due to a lack of support. Although the Council of Ministers approved the bill last May, opposition from some parties – especially Junts per Catalunya – can prevent its parliamentary processing from progressing. Faced with this situation, the Ministry of Labor has already warned that it will not give up on a key part of the reform: tightening and digitizing the recording of working hours.
The second vice president and Minister of Labor, Yolanda Díaz, has made it clear that if the law does not go ahead, she will also apply the obligation of a stricter recording of working hours through regulations. “The control of working hours has regulatory status, a royal decree is issued and it is applied,” Díaz said in an interview, stressing that she can approve this measure directly from the Government without the need for a vote in Congress. In fact, the Ministry of Labor has confirmed that the reform of the digital time record will be approved by Royal Decree in 2025, even if the reduction of the working day to 37.5 hours is not achieved. Yolanda Díaz summed it up forcefully: “If there is no agreement for the working day, there will be for the record”.
It should be noted that this decision does not only respond to domestic policy, but also to European demands. Two rulings from the Court of Justice of the European Union urge Spain to implement a digital time record system that is truthful and objective (i.e., not manipulable) and to include it expressly in the Workers’ Statute. Therefore, the Spanish Government is under additional pressure to strengthen control of hours worked, with or without a 37.5-hour law.
What will mandatory digital time record mean?
The main objective of the reform is to guarantee effective control of each employee's working hours, eliminating legal loopholes and fraudulent practices. Currently, since May 2019, all companies are required to keep a daily record of their employees' working hours, but many still use unreliable and easily manipulated methods (for example, paper sheets, "blank" time sheets signed afterwards, or files without any verification system). With the new regulations, these practices will be expressly prohibited and sanctioned. The mandatory use of digital systems for time recording will be established, which are more secure and auditable, leaving the old paper controls out of play.
Companies will have to implement a daily work record in digital format that guarantees compliance with the regulations and prevents any manipulation of data. This implies that not only the entry and exit times, but also breaks and overtime must be recorded reliably and immediately. In addition, workers will be the ones who must personally record their working hours (via applications or electronic devices), so that the company cannot alter the content of the record. Any entry or exit will be sealed in real time and without the possibility of modification without leaving a trace.
Another pillar of this digital record will be the transparency and accessibility of the data. Each employee will have the right to access their own time record immediately and permanently, for example through an application or portal, and to receive a copy of it periodically (such as attaching the summary of their hours worked to the payroll). Similarly, workers' representatives (such as union delegates) will be able to consult the records, and the Labor Inspectorate will have remote access to them at any time to verify compliance with the established working hours. In fact, it is expected that the Inspectorate will even be able to cross-check the time record data with those of contracts, payrolls and Social Security to detect inconsistencies or fraud in unpaid overtime.
The obligations for the conservation and security of records will also be strengthened. Companies will have to keep the records of working hours for at least 4 years (as already required by current regulations) and ensure their availability in the event of an inspection. The technical implementation will have to guarantee that the records are inviolable (they cannot be deleted or edited without leaving evidence) and verifiable. Only in very specific situations where the use of digital means is not possible (for example, some work in areas without connection or certain rural jobs) would some temporary exception to the exclusive use of telematic records be contemplated.
More severe penalties for non-compliance
With the tightening of regulations, harsher sanctions will also come for those who do not comply. Until now, the Law on Infractions in the Social Order provided for fines of up to 7,500 euros for serious violations in matters of working hours and time registration, normally applied per workplace. The new regulation will increase these fines and apply them to each affected worker. According to the initial draft, companies that fail to comply with the working hours registration or the maximum weekly working hours will be fined up to 10,000 euros per worker. This represents a significant leap that multiplies the cost of violating the law: for example, a small company that does not keep a register of 5 employees could face up to 50,000 euros in sanctions.
Although the Royal Decree route may have some legal limitations to increase sanctions immediately, the Government has stated its intention to apply all punitive measures at its disposal to ensure compliance. In any case, it is clear that the Labor Inspectorate will intensify control and will not hesitate to fine companies that continue not to correctly record the working hours of their employees. Failure to comply with the time registration will become a very costly negligence with serious consequences, not only economic but also reputational.
It should be remembered that these sanctions are derived from both not recording the working hours and exceeding the maximum weekly duration (37.5 hours if it is finally implemented in the future). Therefore, keeping a reliable record of hours is also essential to demonstrate that the legally established working hours are not exceeded. With the new system, employers will lose the impunity they had until now in terms of unpaid overtime and workers will gain a tool to assert their working hours rights.
Advice for SMEs and the self-employed in the face of the new mandatory registration
Whether your company is a small or medium-sized enterprise (SME) or if you are a self-employed person with staff, you must prepare to comply with the mandatory digital time registration. Below, we detail some practical recommendations for successfully adapting to it:
- Find out about the applicable regulations: Stay up to date with the latest legal developments. The change will become official when the Royal Decree is published in the BOE, at which point you will have a period (possibly a few months) to adapt your time control system. Read carefully what the new regulation requires and do not hesitate to consult employment advisors if you have any doubts.
- Review your current registration system: Analyze how you are currently registering your workday. Are you still using spreadsheets, paper documents or manual methods? If so, it is time to update. Implement a digital timekeeping system as soon as possible that is approved and meets legal requirements (automatic, reliable and unalterable registration). Don't wait until the last minute: changing systems takes time to test and train staff.
- Evaluate solutions adapted to your business: There are several timekeeping tools on the market designed for different needs. Choose a solution that adapts to the size of your company and your sector. For example, for a micro-company with few employees, a simple mobile application may be sufficient, while an SME with several departments may need more complete software that manages schedules, shifts, absences, etc. Also consider whether you need special functionalities (geolocation of timekeeping for employees who work outside the office, integration with payroll, access controls, etc.).
- Document a timekeeping protocol: It is important to establish how and when timekeeping should be done in your company. Write an internal protocol that explains, for example, that each worker must sign in at the beginning and end of their day (and during breaks if necessary), how overtime or incidents should be recorded, and what happens in the event of forgetting or making a mistake when signing in. This protocol should be known to all employees and preferably agreed upon with them or their representatives. This way, everyone will have a clear understanding of their obligations and rights in terms of time control.
- Train and involve workers: The transition to a new system can generate doubts or reluctance among employees, especially if they are not used to signing in. For this reason, organize training sessions to teach them how to use the digital tool (for example, how to mark entry and exit from their mobile phone) and emphasize the importance of complying with this daily signing. Explain to them that it is a legal obligation but also a guarantee for them: thanks to the registration they will have a record of their hours, they will be paid for the overtime worked and their schedules and breaks will be better respected. If workers understand the benefit and simplicity of the system, they will be more likely to comply with it correctly.
- Ensure data retention and accessibility: Once the system is implemented, verify that it keeps records for at least 4 years as required by law, and that you can extract reports or lists in case an inspection requests them. Also check that each worker can access their signing history (many applications allow them via mobile or web) and that the company can provide copies of the records when an employee requests them. Having this data well-guarded and available will save you problems in future labor audits.
- Also adapt to digital disconnection: Although the main immediate focus is time control, remember that in parallel the regulations reinforce the right of workers to digital disconnection outside their working hours. Make sure to respect that staff do not have to respond to work communications outside of established hours. A good time record will also help you clearly define the working and rest times of each employee.
Timenet: the solution to comply with regulations easily
Given these changes, having the right tool will make the difference between suffering a headache or managing the workday registration effortlessly. Timenet is the digital time control system that allows you to perfectly comply with the current and future Workday Registration Law. It is a robust but easy-to-use application, designed so that both the company and employees can register their workday in a comfortable and 100% digital way. Timenet is adapted to current regulations and incorporates all the functionalities that the vast majority of companies need, without complications, thus helping to avoid penalties for non-compliance.
With Timenet you can forget about the old paper time sheets. The system facilitates the mandatory registration of daily working hours, improving punctuality, absences, holidays and shifts controls on a single platform. It is a telematics solution accessible from anywhere, whether your employees work in the offices or do so remotely or are traveling. Each timesheet is stored securely and transparently in the cloud: both the company and the worker can consult the hours recorded at any time. In addition, Timenet provides advanced features such as geolocation of timesheets, so you will know from where each entry or exit was made, and allows multiple options for timesheeting (computer, tablet, mobile phone or even specific access control devices) according to what best suits your operations.
Not only is it complete in features, but Timenet is also a reliable and economical tool, designed for SMEs and freelancers. More than 7,000 companies throughout the country already trust Timenet to manage their daily timesheets. Our team offers close treatment and personalized support to ensure that the implementation is fast and without obstacles. In addition, the software is continuously updated to incorporate improvements and adapt to any future legal changes – such as the digital registration requirements and new obligations that we have discussed. With Timenet you will have the peace of mind of complying with regulations effectively, with an intuitive and secure solution that integrates easily into the dynamics of your company.
In conclusion, although the reduction of the working day to 37.5 hours has been paused, the Spanish Government will immediately promote a mandatory digital time record with more control and sanctions. Companies must prepare for this new reality. By implementing tools like Timenet and following the aforementioned recommendations, any SME or self-employed person will be able to adapt to it without difficulty, turning a legal imposition into an opportunity to improve internal management and labor transparency.