Why hospitality is the most vulnerable sector when it comes to time tracking

Over 40% of labor sanctions in hospitality are related to deficient time tracking. It’s no coincidence: split shifts, high staff turnover, kitchens where nobody has their own computer, and a work pace that leaves little room for administrative tasks make this the sector most exposed to labor claims and fines.

A recent case in Spain’s Basque Country makes this painfully clear.

A restaurant ordered to pay for failing to prove work hours

In January 2026, the Superior Court of Justice of the Basque Country ordered a restaurant in Biscay to pay €3,311.70 plus 10% interest to a former employee who claimed unpaid overtime.

The case is especially revealing because it illustrates a dynamic all too common in hospitality:

• The worker was a kitchen assistant on a full-time contract (40 hours/week)
• He claimed to have worked 43 hours per week over several months
• The company argued that “no individual tracking was done in the kitchen” and that the worker “refused to clock in”
• They failed to produce any time records at trial

The court applied EU case law (CJEU ruling of May 14, 2019, C-55/18): the burden of proof for working hours falls on the employer. Without records, the company couldn’t prove anything — and lost.

Why hospitality is different

Other sectors also fail at time tracking. But hospitality has a combination of factors that makes it a powder keg:

1. Split shifts and irregular schedules

A waiter working from 12:00 to 16:00 and returning from 20:00 to 00:00 generates 4 clock events in a single day. In kitchens, hours extend based on service demand. Rotating shifts change weekly.

A time tracking system designed for “one clock-in, one clock-out” doesn’t work here. And many restaurants, especially small ones, still use paper sheets or nothing at all.

2. Nobody has their own computer

In an office, each employee clocks in from their computer. In a restaurant, where does a chef clock in with wet hands? Or a waiter between courses?

The only viable solution is a shared device — a tablet or fixed phone where everyone clocks in with a PIN or code. If your time tracking tool doesn’t offer kiosk mode, you have a problem.

3. High turnover and seasonal staff

Hospitality has one of the highest turnover rates in the Spanish economy. Staff who come and go within weeks, seasonal reinforcements, event extras… Every single one of them needs to be clocking in from day one.

And every single one of them can claim overtime months or years later — with a one-year statute of limitations for wage claims.

4. Informal organization

In the Biscay case, the company argued that “breaks and days off were organized among the workers themselves.” This kind of informal management is common in hospitality, but it has zero legal value without records to back it up.

“We sort it out among ourselves” is not a defense in court.

What the court ruled — and what’s coming

The Basque Country ruling (STSJ PV 242/2026) is clear: without time records, the company cannot defend itself. The court explicitly cites CJEU doctrine and Articles 34.9 and 35.5 of Spain’s Workers’ Statute.

But what’s coming is worse for anyone unprepared. The draft of the new Royal Decree on time tracking will add specific requirements that directly impact hospitality:

• Mandatory digital time tracking — no more paper
• Breaks recorded individually — each employee must clock each break when it starts and ends
• Remote access for Labor Inspection — they can check records without visiting the premises
• Fines up to €10,000 per worker for falsifying time records
• 4-year retention — you can’t delete old records

For a restaurant with 15 employees, a serious violation could mean fines in the tens of thousands of euros. Not counting individual overtime claims like the Biscay case.

The 3 things a restaurant needs from its time tracking system

If you run a restaurant, bar, hotel or any hospitality business, these are the must-have features:

1. Kiosk mode with individual PIN

A tablet at the entrance or in the kitchen where each employee clocks in with their personal code. No need for everyone to install the app or have their own computer.

2. Multiple clock events per shift

For split shifts: clock in → clock out → clock in → clock out, all in the same day, correctly assigned to each shift segment.

3. Break tracking

You can’t just deduct 30 minutes automatically from the schedule. The upcoming Royal Decree will require each break to be recorded in a “personal, direct and immediate” manner. If your system deducts automatic breaks, it may not comply.

How Cleverfy solves these problems

Cleverfy includes kiosk mode in all plans — from €1.50/user/month. Install the app on a tablet, enable kiosk mode and each employee clocks in with their PIN.

Plus:

• Multiple clock events — as many as you need per shift
• Configurable break policies — break types (lunch, coffee, personal), computable or not, with individual tracking
• Inspection-ready reports — PDF/Excel ready to present to Labor Inspection
• No employee limit — the price doesn’t go up for having more staff

For a 15-employee restaurant, the cost is €22.50/month on the Basic plan. Compare that to the €3,311.70 + interest from a single overtime claim.

→ Try Cleverfy free for 14 days

---

Sources: STSJ PV 242/2026 (ECLI:ES:TSJPV:2026:242), Spanish Labor Inspection (ITSS)

Legal notice: This article is for informational purposes only and does not constitute legal advice. The draft Royal Decree on digital time tracking is pending approval and publication in Spain’s Official Gazette (BOE), and its requirements may change.