Labor Inspection and Time Tracking: How to Prepare

📌 In summary: Labor Inspection can show up without prior notice. They’ll check that you have working time records for all employees, accessible and kept for 4 years. Penalties range from €70 to €7,500. The best way to prepare: have a digital system running before they arrive.

You’ve received an inspection notice (or want to be prepared)

There are two types of people reading this article:

1. Those who just received an inspection notice and are desperately looking for what to do
2. Those who want to prepare before being caught off guard

Whatever your case, here’s everything you need to know about what Labor Inspection checks regarding time tracking, what documentation you need ready, and how to comply even if you’re starting from scratch.

What does Labor Inspection check?

When Labor Inspection visits your company to verify compliance with working time records, they check the following:

1. That a time record exists

First and most basic: do you keep any kind of record of the hours your employees work? If the answer is “no” or “sort of”, you have a problem.

2. That it includes the mandatory elements

The record must include:

• Clock-in time for each employee, each day
• Clock-out time for each employee, each day
• Breaks (especially important for shifts over 6 hours)
• Worker identification (who each record belongs to)
• Date of each record

3. That it’s accessible

Records must be available for consultation. “I have it at home” or “my accountant needs to send it to me” won’t cut it. You must be able to show them on the spot.

4. That they’re kept for 4 years

The law requires keeping records for a minimum of 4 years. If they ask for records from 3 years ago, you must be able to show them.

5. That employees have access

Your employees must be able to view their own records. If asked “can you see your time record?” and the answer is “I don’t know how”, that’s a problem.

6. That legal representatives have access

If your company has a works council or staff delegates, they must also have access to records (usually aggregated data, not individual).

What does NOT comply with the law (even if you think it does)

The signature book “when they remember”

A notebook where employees write their time… when they remember, unsupervised, filling in several days at once. It’s not valid because:

• There’s no guarantee the time is real
• It can be filled in retrospectively
• There’s no traceability

The Excel sheet nobody updates

Similar to the notebook, but digital. If anyone can modify data without leaving a trace, it doesn’t work.

”Here we all know what time we arrive”

Trust is great, but it’s not a record system. The law requires documentation, not good intentions.

The 20-year-old punch clock

If you have an old punch clock that prints on paper cards, technically it’s better than nothing. But:

• Do you keep all cards from the last 4 years?
• Are they organized so they can be consulted?
• Can employees easily see their records?

With the new Royal Decree (in process), recording must be digital by law.

Current penalties for non-compliance

Penalties for not keeping proper working time records are defined in the Law on Social Order Violations and Sanctions (LISOS):

Minor violation

Penalty: €70 - €750

Applied when:

• There are records but with minor formal defects
• Some non-essential data is missing
• The system exists but has occasional failures

Serious violation

Penalty: €751 - €7,500

Applied when:

• There’s no record system at all
• The system is clearly inadequate
• Records aren’t kept for the required time
• Access is denied to employees or representatives
• There’s repeated non-compliance

How the penalty is graded

Within each range, Inspection considers:

• Number of affected workers
• Intent (negligence vs. fraud)
• Recurrence (if you were sanctioned before)
• Company revenue (proportionality)
• Harm caused to workers

Real example

An SME with 10 employees without any record system can face a serious penalty between €751 and €7,500. If unregistered and uncompensated overtime is also detected, penalties can accumulate.

How to prepare in 24 hours (if you already have a system)

If you already use a digital time tracking system but just received an inspection notice, here’s what to review:

1. Verify all employees are clocking in

Access the dashboard and check:

• Do all active employees have recent clock-ins?
• Is anyone who hasn’t clocked in for days?
• Are there unresolved incidents (forgotten clock-ins, etc.)?

2. Export a test report

Generate a report from the last month to ensure:

• Data exports correctly
• It includes all required information
• You can explain how to read it

3. Prepare complementary documentation

Have on hand:

• Company time recording policy
• Employee communication about the system
• Manual or instructions for the system used

4. Review records from the last 4 years

If they ask for old records, make sure you can access them.

5. Confirm employee access

Check that your employees know how to view their own clock-ins. If they don’t, explain it to them before the inspection.

How to prepare in 1 week (if starting from scratch)

If you don’t have any time tracking system and want to implement one before a possible inspection:

Days 1-2: Choose and implement a system

1. Sign up for Cleverfy (or your chosen system)
2. Set up your company (basic data, work centers)
3. Add all employees (name, email, schedule)
4. Test the clock-in process yourself

Days 3-4: Train employees

1. Communicate to employees that you’ll use a time tracking system
2. Show them how to clock in (app, web, tablet…)
3. Answer questions and make sure everyone knows how
4. Follow up the first days to detect problems

Days 5-7: Establish routines

1. Check the dashboard daily to detect incidents
2. Resolve forgotten clock-ins with corresponding corrections
3. Document the process (who manages what, how problems are solved)
4. Prepare complementary documentation

What about previous records?

If you didn’t have a system before, you can’t invent past records. What you can do:

• Document when you implemented the new system
• Have the system working correctly from now on
• If asked about the past, be honest: “We didn’t have a system, we implemented it on [date]”

It’s better to have a recently implemented system than nothing at all.

Frequently asked questions

Can they come without notice?

Yes. Labor Inspection can show up without prior notice. It’s common in routine inspections or complaints.

What if I don’t have last year’s records?

If they ask and you don’t have them, it’s a violation. The penalty will depend on whether you have a current system, if it was a one-time oversight, or if you’ve never kept records.

Does Excel work if I have it well organized?

Currently, technically yes (though it’s very improvable). But with the new Royal Decree, records must be digital with automatic timestamps and traceability. Excel won’t meet that.

What if an employee refuses to clock in?

Document it. Communicate in writing that the employee must clock in and keep that communication. The recording obligation is the company’s, but the employee must cooperate.

Can they ask for records of employees who no longer work here?

Yes, if it was less than 4 years ago. That’s why keeping ex-employee records is important.

Can Inspection access my system directly?

With the new Royal Decree (in process), Inspection may be able to remotely access record systems. For now, they request documentation and you provide it.

How long does an inspection take to resolve?

Variable. It can be a one-time visit resolved the same day, or a process that extends weeks if additional documentation is needed or there are appeals.

The best preparation: having the system running

The truth is simple: the best way to prepare for an inspection is to have a good time tracking system running routinely.

It’s not something you can improvise the day before. But it is something you can implement today in less than 10 minutes.

With Cleverfy:

• Sign up and set up your company in 10 minutes
• Your employees start clocking in tomorrow
• All records stored, traceable, exportable
• Comply with current law and be ready for the new Royal Decree

Start free today — 14-day trial, no credit card required.

Don’t wait for the inspection to arrive. Compliance is easy, fast, and cheap. Non-compliance can cost you up to €7,500.

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Legal note: This article is informational and does not constitute legal advice. The penalties indicated correspond to current LISOS. The new Digital Working Time Record Royal Decree is under process at publication date. For an actual inspection, consult a legal professional.