This regulatory advancement aims to improve transparency and protect workers' rights, but it also presents a technological challenge for many organizations.
What changes with the new digital time tracking system?
The obligation to record working hours is not new (it has existed since 2019), but until now companies could keep track of this on paper or in spreadsheets. That's over: manual methods will become obsolete in 2026. The new regulations require that working hours be recorded electronically or digitally, with a series of key requirements:
- Goodbye to paper: Timekeeping must be done electronically or via software; paper forms and Excel spreadsheets will no longer be valid. Data for each workday will be managed digitally and in a unified manner, securely stored for at least four years (as required by current legislation).
- Real-time remote access: The Labor Inspectorate will be able to access records electronically and instantly, at any time and without needing to notify or travel. This means that data must always be up-to-date and available online for labor authorities.
- Detailed work schedule: Each workday must clearly reflect all hours worked. This includes not only the clock-in and clock-out times, but also actual working hours, breaks, on-call or availability periods, and overtime. In other words, the record will distinguish between regular hours, overtime, and periods of inactivity or on-call duty, providing a complete overview of working time.
- Identification and traceability: The timekeeping system must link each clock-in/out to the employee's identity (e.g., through unique credentials, PIN, card, etc.) and guarantee tamper-proof and unalterable records. Any corrections must be documented (who, what, and when the change was made). This technological traceability prevents fraudulent manipulation and ensures the reliability of the recorded data.
- Access for employees and representatives: Each employee will have the right to easily access their own time records, for example, through an application or web portal. Likewise, employee representatives (union delegates, works councils) will be able to consult the records and even receive periodic copies. The information will be accessible to all parties involved, promoting transparency.
- Security and privacy: The new system must comply with data protection regulations. Encryption, access control, and compliance with the LOPDGDD and the GDPR will be required, ensuring the confidentiality of personal information. Furthermore, the digital record will help to respect the digital disconnection of the staff, by recording any activity outside of working hours (which would serve as evidence in the event of abuses in this regard).
In short, mandatory digital time tracking will mean much stricter and more automated monitoring of working hours. Everything will be recorded down to the minute and available online, eliminating the legal loopholes of the old systems.
Greater transparency and protection of labor rights
The main objective of this measure is to strengthen transparency in the calculation of working hours and guarantee compliance with labor regulations. Until now, many disputes regarding unpaid overtime or lack of breaks were due to unreliable or easily manipulated records. With a verifiable digital system, traceability will be complete, and both the employee and the company will be able to know the exact number of hours worked at any time.
The Labor Inspectorate also gains tools to combat timekeeping fraud. It will no longer be possible to "work invisible overtime" without it being recorded, nor to submit falsified time clocks. If an employee works overtime, it will be recorded; if an employee answers messages outside of their working hours, the system will register it. This means better protection of rights: employees will be paid (or given time off) for their overtime, mandatory breaks and maximum working hours will be respected, and the right to rest and disconnection will be strengthened. Furthermore, companies that comply with the regulations will have a more robust legal framework, with reliable data that verifies the actual working hours of their staff.
Furthermore, stricter penalties are expected for non-compliance. Failure to record working hours or doing so incorrectly is already considered a serious offense (fines of up to €7,500 under current law). With the new regulations, fines could be applied for each affected employee and rise to €10,000 per employee in the most serious cases. In other words, a small or medium-sized enterprise (SME) that fails to clock in five employees could face fines of up to €50,000. Clearly, maintaining a reliable time record will not only be mandatory but crucial to avoid serious legal and financial consequences.
A technological challenge for businesses (and how to prepare)
Implementing mandatory digital time tracking will pose a technological challenge, especially for companies that still manage working time manually. Many SMEs and self-employed professionals will have to make the leap from paper time sheets to a computerized timekeeping system. You'll need to evaluate the available options (mobile apps, cloud-based systems, time clocks, etc.) and choose a solution that meets all the aforementioned legal requirements (automatic timekeeping, secure identification, tamper-proof data, accessibility, data protection, etc.).
The good news is that the market already offers affordable and easy-to-use digital time tracking tools. These apps allow employees to clock in and out from their mobile phones or computers, generate automatic reports, store everything in the cloud, and facilitate sharing data with the Labor Inspectorate if necessary. Adapting as soon as possible is key: although the regulation comes into effect in 2026, a short adaptation period is expected (possibly only a few months), so companies must get ahead of the curve.
Is your company ready for this change? Now is the time to review how you manage working hours and make the leap to digitalization. Implementing a modern time tracking system will not only help you avoid penalties but can also improve internal efficiency. You'll have automatic and reliable records, less paperwork, and more control over your team's hours. Ultimately, the digital transformation of time tracking is more than just a legal obligation; it's an opportunity to professionalize time management in your organization.