New Regulations for Timekeeping in Spain: What Businesses Need to Know

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Since 2019, Spanish labour law has required all companies with employees to keep a detailed record of working hours. These records must be stored for a minimum of four years and made available for labour inspections. Until now, businesses have had the flexibility to maintain these records either on paper or via digital systems.
The approval of a new law proposal in June 2024 is set to bring about significant changes to this framework. The forthcoming regulation introduces two transformative changes to the way businesses manage and report working hours, requiring companies to update their practices to remain compliant.

Key Changes in Timekeeping Requirements

Once the new regulation comes into effect, employers will no longer have the option to maintain paper-based timekeeping systems. Work hours must be recorded exclusively via a digital platform. This platform must be accessible on various devices, including computers, tablets, and mobile phones, ensuring ease of use for employees and compliance for employers.
This shift aligns with wider efforts to modernise workplace management systems and eliminate the inefficiencies associated with manual record-keeping. Digital systems not only improve accuracy but also provide real-time data to streamline labour inspections and ensure transparency.
Another critical update involves granting remote access to timekeeping records for the Labour and Social Security Inspectorate (Inspección de Trabajo y Seguridad Social). Under the current system, inspectors often need to conduct physical visits to review records, which can be time-consuming and disruptive.
The new regulation mandates that the digital timekeeping system must allow inspectors to access records remotely. This change is expected to improve efficiency in enforcement and reduce the administrative burden on both businesses and labour authorities.

Impact on Businesses

The upcoming changes will require businesses to transition to fully digital timekeeping systems. Companies will need to invest in appropriate timekeeping software, ensuring the platform complies with the new legal standards for accessibility and data security. Employee training will also become essential, as workers must be equipped to use the digital tools effectively to log their hours. Additionally, internal HR policies and processes may need updating to align with the revised timekeeping methods.
For small businesses and organisations that still rely on paper records, this represents a considerable change, demanding significant effort to adapt. In contrast, companies already utilising digital systems will mainly need to ensure their platforms include functionality for remote access by labour inspectors, streamlining compliance with the updated regulations.

Fines for Non-Compliance

The penalties for failing to comply with these regulations are steep. While current fines for non-compliance with timekeeping laws can reach up to 6,250€, the increased scrutiny enabled by remote access could lead to more frequent inspections and enforcement. Ensuring your business is fully prepared for these changes is crucial to avoid penalties.

When Will These Changes Take Effect?

Although the new regulation has been approved, it is not yet in force. The government will announce the official implementation date, and businesses will need to ensure they are fully compliant by that time.

How to Prepare for the New Timekeeping Rules

To stay ahead of the changes, businesses should evaluate their current timekeeping system to determine if it meets the new requirements for digital-only records and remote access. They should also research digital solutions, exploring software options that are user-friendly, secure, and compliant with Spanish labour laws. It’s important to inform employees about the changes, providing them with instructions on how to use the new system. Finally, businesses should monitor updates and stay informed about the regulation’s implementation timeline to avoid last-minute surprises.

Conclusion

The move towards digital-only timekeeping and remote access for inspectors reflects a new trend to the digitalisation of workplace management. While the transition may pose challenges for some businesses, it also offers an opportunity to modernise systems, improve compliance, and enhance efficiency.
By taking proactive steps now, businesses can ensure they are ready when the new regulations come into force and avoid the risk of fines or operational disruptions. Stay tuned for further updates on the official implementation date of these changes.

Spence Clarke specialises in the provision of Spanish tax, accounts, law and labour services, mainly to foreigners with interests in Spain. Our cross-border knowledge helps clients adapt to the Spanish system with the minimum of doubt and disruption. If you have any questions about this article or any other matter contact us, with no obligation, to see how we can help you.