Penalties for timekeeping violations: How much can the Labor Inspectorate fine you for not recording your working hours?

7/14/2026

Recording working hours is mandatory for all companies with employees. However, there are still organizations that lack an adequate system for monitoring working hours or that use unreliable methods that can cause problems during an inspection.

But how much can it cost a company to fail to properly record its employees' working hours?

Why can the Labor Inspectorate impose sanctions?

The regulations stipulate that companies must maintain a daily record of the working hours of all their employees. This record must include the start and end times of the workday and must be kept on file to be presented if requested.

The Labor Inspectorate can detect non-compliance when:

  • The company does not have a time tracking system.
  • The clock-in/clock-out records do not reflect the actual hours worked.
  • The information is incomplete or contains errors.
  • The records are not properly maintained.
  • The requested data is not easily accessible.

For this reason, having a specialized digital solution like Timenet allows you to reduce risks and ensure more secure time tracking.

Labor Inspection Fines for Non-Compliance with Time Tracking

Labor inspection fines related to working hours can have a significant financial impact on companies.

Penalties can vary depending on the severity of the violation and the specific circumstances of each case. Furthermore, the trend in recent years shows increased scrutiny of working time records and undeclared overtime.

An unreliable system, tamper-proof records, or the inability to prove hours worked can become a problem during an inspection.

The issue is no longer just clocking in, but having clear, secure information readily available when needed.

Timenet: Avoid Problems with Digital Time Tracking

Timenet is a time tracking system designed to help companies comply with current regulations and manage working time simply and efficiently.

Thanks to Timenet, each employee can clock in and out from a computer, mobile phone, or tablet, adapting to both on-site teams and employees who are mobile or working remotely.

All records are stored securely, allowing:

  • View real-time clock-ins and clock-outs.
  • Generate comprehensive daily reports.
  • Track hours worked.
  • Manage vacations and absences.
  • Organize teams and departments.
  • Easily detect incidents.

This way, the company always has up-to-date information ready for any request.

Digitizing time tracking is an investment in security.

Potential time tracking penalties aren't the only reason to implement a professional solution. A good system also helps improve internal organization, reduce administrative tasks, and optimize human resource management.

Digitizing time tracking allows you to move from a legal obligation to a strategic tool for your company.

Avoid fines and manage working hours with Timenet.

Don't wait for an inspection to discover that your time tracking system isn't enough.

With Timenet, you'll have a complete, flexible, and secure solution to manage your company's work hours, comply with regulations, and always have the information you need.

Request a Timenet demo now and discover how to digitize your company's time tracking in a simple and efficient way.