The 'Code 9' Case: Company Fined for Hiding Overtime in Time Records

Update January 2026: This article analyzes a real case of sanction for time tracking fraud, published by Infobae on January 25, 2026.

”Code 9”: A System to Make Overtime Disappear

The Labor Inspection of Málaga has sanctioned Plásticos Ima, a company located in Archidona, for using a fraudulent system to hide their workers’ overtime hours.

How did it work? According to the CGT union’s complaint, the company had designed what they describe as a “Machiavellian” system: when workers finished their regular shift and started working overtime, they had to clock in with a special code called “Code 9”.

This code made overtime hours disappear from the official record. They didn’t appear on payslips, weren’t reported to Social Security with the legally required surcharges, and remained completely invisible to any inspection.

The result: double fraud. Against the workers, who weren’t properly paid for their overtime. And against Social Security, which missed out on the corresponding contributions.

Two Serious Violation Notices

Following CGT-Andalusia’s complaints, the Labor Inspection has issued two serious violation notices:

1. For exceeding the legal limit of 80 overtime hours per year per worker. The law establishes a maximum of 80 overtime hours annually, and the company systematically exceeded this.

2. For not reflecting overtime on payslips since November 2022. This constitutes a continuing violation of Article 35.5 of the Workers’ Statute, which requires proper recording and payment of overtime hours.

Fines for serious violations in working time matters range from €751 to €7,500, and can multiply if they affect multiple workers or work centers.

A Repeat Offender

This is not an isolated case. Plásticos Ima had already been sanctioned for:

• Violating digital disconnection rights of nine workers during Christmas holidays
• Multiple occupational health and safety violations
• According to CGT, it holds the “workplace accident record” in Málaga province

The Labor Inspection has set specific deadlines during 2026 to correct serious deficiencies, including mandatory preventive training, protection against adverse weather conditions, and fire safety measures.

What Can Affected Workers Claim?

Plásticos Ima employees now have the right to claim regularization of their contributions for the last 4 years. This means the hidden overtime must count toward their contribution bases, affecting:

• Unemployment benefits
• Retirement calculations
• Coverage in case of work accidents or occupational illness

Lessons for Any Business

This case illustrates several mistakes no SME should make:

1. Don’t Use “Creative” Time Tracking Systems

Any mechanism that allows hiding, modifying, or deleting time records is fraud. Labor Inspection has increasingly sophisticated tools to detect inconsistencies between records, payslips, and contributions.

2. Overtime Has Limits and Rules

• Maximum 80 overtime hours per year per worker
• Must be recorded and shown on payslips
• Subject to specific contribution surcharges
• Workers can choose between payment or compensatory time off

3. Employees Talk (and Report)

In this case, it was the CGT union that filed the complaints. But any worker can report irregularities to Labor Inspection anonymously through the Ministry’s complaint portal.

4. Fines Accumulate

An isolated violation might be relatively cheap. But when they pile up (as in this case: overtime + contributions + health and safety + repeat offense), the economic and reputational consequences multiply.

How to Avoid Ending Up Like Plásticos Ima

The best way to avoid fines is simple: comply with the law from the start. And complying with time tracking law in 2026 means:

1. Using a digital time tracking system with immutable timestamps
2. Recording all hours, including overtime
3. Never manipulating records under any circumstances
4. Keeping data for 4 years and having it available for inspection
5. Properly reflecting overtime on payslips

With tools like Cleverfy, implementing a legal time tracking system takes less than 10 minutes and costs from €1.50 per employee per month. Much less than any fine.

Conclusion

The “Code 9” case proves that Labor Inspection does take action and that fraudulent time tracking systems eventually get discovered. It’s not worth the risk.

If your company still doesn’t have a compliant time tracking system, try Cleverfy for free and avoid unpleasant surprises.

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Source: Infobae España, January 25, 2026