Spain: Validity and Importance of a Time Tracking System

Since 2019, all companies are required to implement a time tracking system, regardless of the company’s size. Companies are required to keep records of employees’ working hours for a period of 4 years.

However, the law does not specify which time tracking system should be used. Regarding the form or means to be employed for timekeeping, recent case law has rejected the use of biometric methods for clocking in and out.

For the time tracking system to be valid, it must record both the start and end of the workday, as well as the lunch break at noon. If the company does not have a time tracking system, this can be classified as a very serious offense, with penalties ranging from €7,501 to €187,515. Additionally, not having a time tracking system can cause serious harm to companies in cases where employees claim overtime. If the matter goes to court, the company won’t be able to prove the overtime hours and will be required to pay the claim amount.