Geolocation Time Clocking: When, How, and Why to Implement It

Geolocation Time Clocking: When, How, and Why to Implement It

Geolocation clocking has become a key tool for companies with teams that work outside the office. Sales reps on the road, maintenance technicians, delivery drivers, cleaning staff at different centres… There are dozens of situations where you need to know where your employees clock in, not just when.

But geolocation isn’t for everyone or every situation. Spanish legislation and GDPR set clear limits. In this guide, we explain when it makes sense to implement GPS clocking, how to do it legally, and what technology options exist.

What Is Geolocation Clocking?

Geolocation clocking is a time recording system that associates GPS coordinates (location) with the moment the employee clocks in or out. That is, when a worker clocks in from their mobile or device, the system records not only the time but also from where they did it.

There are two main modalities:

Point Geolocation (When Clocking)

The system records the location only at the exact moment of clocking. It doesn’t do continuous tracking. It’s the most common and least invasive option for privacy.

Continuous Geolocation (Tracking)

The system tracks the employee’s location throughout the working day. This option is only legal in very specific situations where travel is an essential part of the job (transport, delivery, etc.) and there are no less intrusive alternatives.

Geofence (Geofencing)

Another variant is the geofence: a geographic perimeter is defined (for example, a 200-metre radius around the office or work centre) and the employee can only clock in when they’re within that zone. This prevents fraudulent clocking from home or another location.

When Does It Make Sense to Implement GPS Clocking?

Not all companies need geolocation. If all your employees work from the same office, you probably don’t need it. But there are sectors and situations where it’s almost essential.

Sectors Where Geolocation Provides Real Value

• Construction and sites: Employees who travel to different sites or projects. You need to know which site they clocked in at to allocate costs and verify presence.
• Cleaning and maintenance services: Teams that rotate between various client centres. GPS clocking confirms that the employee was at the correct location.
• Sales reps and field sales: Staff who visit clients and don’t go to the office. Geolocation replaces the “visual control” that doesn’t exist.
• Light logistics and transport: Delivery drivers, couriers, and drivers whose job is to travel.
• Technical assistance and after-sales service: Technicians who go to homes or businesses for repairs or installations.
• Hospitality with multiple venues: Employees who work at different establishments of the same group.
• Partial remote work: Companies that want to verify that the employee clocks in from home (and not from the beach) during remote work days.

When It Doesn’t Make Sense

• Fixed office with the whole team present: Web, app, or kiosk clocking is sufficient.
• Employees who always work from the same place: Geolocation doesn’t provide useful information.
• When the only objective is to “surveil”: If there’s no operational justification, geolocation may be excessive and legally problematic.

Is Geolocation Clocking Legal in Spain?

Yes, it’s legal, but with clear conditions. Legality depends on how it’s implemented and on compliance with data protection regulations.

What Time Recording Regulations Say

Current regulations (Art. 34.9 ET, 2019) require all companies to record their employees’ working hours, although it doesn’t require digital format. The new Royal Decree (in processing) will require the record to be digital, with automatic and immutable timestamp. The law doesn’t require geolocation, but doesn’t prohibit it either. It’s another tool the employer can use if there’s a legitimate justification.

What GDPR and LOPDGDD Say

Here’s the key. A person’s location is personal data, protected by the General Data Protection Regulation (GDPR) and the Organic Data Protection Law (LOPDGDD). To use it legally, the company must meet several requirements:

1. Legitimate legal basis: The processing of location data must have a legal basis. The most common is the legitimate interest of the employer (article 6.1.f of GDPR) to control compliance with working hours, provided it’s demonstrated that geolocation is necessary and proportional.

2. Data minimisation principle: Only collect strictly necessary data. If recording location when clocking is sufficient, you can’t do continuous tracking.

3. Prior information to the employee: The worker must be informed before geolocation is activated: what data is collected, for what purpose, how long it’s kept, and what their rights are.

4. Impact assessment (DPIA): When processing may pose a high risk to workers’ rights, it’s advisable (and sometimes mandatory) to carry out a data protection impact assessment.

5. Proportionality: The measure must be proportional to the aim pursued. Continuously tracking an office worker at a fixed desk would be disproportionate (and probably illegal).

AEPD Recommendations

The Spanish Data Protection Agency (AEPD) has established clear criteria:

• Continuous tracking is only reasonable when travel is an essential part of the job (delivery, transport, itinerant technical assistance).
• Tracking is not permitted when the employee works at a fixed point, if there’s no reason to constantly follow their location, or if less intrusive alternatives exist.
• The company must guarantee encryption, traceability, and time-stamping of location data.
• Geolocation data must be stored securely and deleted when no longer necessary (respecting the minimum 4 years required by time recording law).

How to Implement Geolocation Clocking Step by Step

If you’ve determined that geolocation makes sense for your company, these are the steps to implement it correctly:

1. Assess If You Really Need It

Ask yourself these questions:

• Do my employees work outside a fixed centre?
• Do I need to know from where they clock in for operational or billing reasons?
• Is there a less invasive alternative that achieves the same objective?

If the answer to the first two is yes and to the third is no, geolocation is justified.

2. Choose the Appropriate Type of Geolocation

For most SMEs, point geolocation (only when clocking) or geofencing are more than sufficient. Continuous tracking only makes sense for transport or logistics companies.

3. Inform Employees

Before activating the functionality, communicate to your team:

• What location data will be collected (coordinates when clocking, not continuous tracking).
• What it will be used for (verify clocking location, allocate costs by work centre, etc.).
• How it’s stored and for how long.
• What their rights are (access, rectification, deletion).

Include this information in the internal privacy policy and collect an acknowledgement of receipt.

4. Update the Processing Activities Register

If you already have a processing activities register (mandatory under GDPR), add the processing of geolocation data with all details.

5. Configure the Clocking Software

With a tool like Cleverfy, activating geolocation takes minutes. The administrator can:

• Activate or deactivate geolocation by employee or group.
• Define geofences around work centres.
• Configure what information is recorded (coordinates, address, zone).
• View records with location in reports.

Everything integrated in the same clocking system, without needing additional apps or tools.

Need geolocation clocking for your team? Try Cleverfy free - it’s configured in 10 minutes and geolocation is included in all plans.

6. Review Periodically

Geolocation isn’t something you configure and forget. Periodically review:

• Is it still necessary for all employees who have it activated?
• Is data being deleted when appropriate?
• Has any employee’s work situation changed (for example, they no longer work outside)?

Privacy and Best Practices: What NOT to Do

Implementing geolocation incorrectly can generate AEPD sanctions (which can reach millions of euros), labour conflicts, and distrust in your team. These are the practices you should avoid:

Do Not Activate Continuous Tracking Without Justification

If your employees don’t travel as an essential part of their job, continuous tracking is disproportionate. Use point geolocation or geofences.

Do Not Fail to Inform Employees

Lack of prior information is one of the most frequent violations. Although you don’t need explicit consent (you can rely on legitimate interest), you must inform.

Do Not Use Location Data for Undeclared Purposes

If you said geolocation is to verify clocking location, you can’t then use it to calculate travel times, productivity by zone, or control sales routes (unless you’ve also informed and justified that).

Do Not Fail to Differentiate Work and Personal Hours

The system should never record the employee’s location outside their working hours. If they use their personal mobile to clock in, the app should only access GPS at the moment of clocking.

Do Not Force Installation of Apps with Excessive Permissions

The clocking app should request only necessary permissions: location when clocking (not continuous background), camera only if there’s facial clocking, etc.

How Much Does Geolocation Clocking Cost?

Most clocking software includes geolocation in their standard plans, at no additional cost. You don’t need to buy GPS hardware or special devices: it’s enough for the employee to clock in from their mobile.

With Cleverfy, geolocation is included in all plans from 1.50 EUR/user/month. You can also opt for Lifetime Deals (one-time payment from 699 EUR) if you want to forget about monthly fees.

Compared to fingerprint or RFID card attendance systems (which require physical terminals from 200-500 EUR per unit), GPS app clocking is much more economical and flexible.

GPS Clocking vs. Other Clocking Methods: Which to Choose?

Method	Cost	Mobility	Location Precision	Privacy	Ideal For
App with GPS	Low (included in software)	Full	High	Requires GDPR management	Mobile teams, remote work
Geofence	Low (included in software)	Full	By zone	Less invasive	Verifying presence at centre
Web/browser	Low	Computer only	No location	High	Offices, remote work
Kiosk/tablet	Medium (needs device)	Fixed	By device	High	Fixed work centres
Biometric terminal	High (hardware)	Fixed	By device	Biometric data	Factories, warehouses
Chrome extension	Low	Computer only	No location	High	Desk work

The recommendation for most SMEs is to combine methods: web or extension clocking for those working in the office, and app with GPS for those who travel.

With Cleverfy you can use all these methods (web, mobile app with GPS, Chrome extension, kiosk mode) at no additional cost. Each employee clocks in however is most comfortable for them. Book a free demo and we’ll show you in 15 minutes.

Practical Cases: How Real Companies Use Geolocation

Cleaning Company (25 Employees)

A cleaning company with contracts in 12 office buildings needed to verify that employees arrived at the assigned centre. They configured geofences around each building. Now the employee clocks in from the app on arrival and the system automatically confirms they’re at the correct location. The manager sees in real-time who has clocked in at each centre without making calls.

Renovation Company (8 Employees)

A small renovation business with workers going to different sites each day. They activated point geolocation: when clocking in and out, the system records coordinates. This allows them to know which site each person worked at and how many hours were dedicated to each project, something fundamental for budgeting correctly.

Consultancy with Hybrid Remote Work (15 Employees)

A consultancy that allows remote work 3 days a week wanted to verify that employees clocked in from home or office (not from elsewhere). They configured optional geofences for the office and left point geolocation active for remote work days. No continuous tracking, just a record of from where they clocked in.

Frequently Asked Questions (FAQ)

Can they force me to clock in with geolocation at work?

Yes, as long as the company has a legitimate justification (for example, you work outside a fixed centre) and has complied with the obligation to inform you beforehand. They don’t need your explicit consent, but there must be a valid legal basis and the measure must be proportional.

Can the company track my location outside working hours?

No. Geolocation can only be activated during working hours and, in the point modality, only at the moment of clocking. Tracking an employee outside their hours is a serious GDPR violation.

What happens if I clock in from a different location than expected?

It depends on your company’s policy. The system will record the actual location, and the manager will be able to see that clocking was done from a different place than usual. This may generate an incident to review with the employee.

Does geolocation use a lot of mobile battery?

Point geolocation (only when clocking) has minimal battery impact, as it only accesses GPS for a few seconds. Continuous tracking can use more battery, but it’s not the usual modality for clocking.

Is geolocation mandatory to comply with time recording law?

No. The law requires digital recording with timestamp, but doesn’t specify it must include geolocation. It’s an optional feature that some companies need for their operational characteristics.

What fines can my company receive for misusing geolocation?

Sanctions for GDPR violations can reach 20 million euros or 4% of global annual turnover. In practice, the AEPD imposes fines ranging from a few thousand euros to hundreds of thousands, depending on severity. Using geolocation without informing employees or without legitimate justification are the most common violations.

Conclusion: Geolocation Is a Useful Tool, But Not Universal

Geolocation clocking is a powerful feature for companies with mobile teams, multiple work centres, or remote work policies. But it’s not for all companies or all situations.

The key is:

1. Assess if you really need it (do your employees travel?).
2. Choose the appropriate modality (point, geofence, or continuous).
3. Comply with privacy regulations (inform, minimise, be proportional).
4. Use software that makes it easy without technical complications.

If you need geolocation clocking for your company, Cleverfy includes it in all its plans, configures in minutes, and complies 100% with Spanish regulations. From 1.50 EUR/user/month, no lock-in or contracts.

Create your free account or book a personalised demo to see it in action.