Mandatory Digital Time Tracking 2026: How to Comply with the Law Step by Step

Note: The new Royal Decree on digital time recording is currently in the processing phase (January 2026). The current recording obligation comes from Art. 34.9 of the Workers’ Statute (2019), which does not require digital format. This article anticipates the requirements set out in the draft Royal Decree.

Mandatory Digital Time Tracking in 2026: What You Need to Know (Without the Drama)

If you’ve landed here, you’re probably wondering: “What exactly do I need to do to comply with the time tracking law?”. Don’t worry, you don’t need to be a labour lawyer or IT expert to figure it out.

The new regulations on digital time recording are stricter, yes. But complying with them is simpler than it seems. In this guide, we explain step by step what the law requires, what you need, and how to have everything ready in less than a morning.

What Exactly Does the Time Tracking Law Require?

Since the obligation to record working hours was established in 2019 (Article 34.9 of the Workers’ Statute), all companies with employees must record their workers’ working hours.

But the new Royal Decree on Digital Time Recording (currently in processing) will raise the bar. When approved, any method will no longer be valid: the record must be digital, traceable, and accessible. These are the key points anticipated:

Mandatory Digital Record

The most important change is that the record must be digital. This means that manual methods - paper sheets, Excel templates, signature books - will no longer be valid as the main system.

Why? Because a paper or Excel record doesn’t guarantee:

• Immutability: anyone can modify a cell without leaving a trace.
• Reliable timestamp: there’s no way to prove when the record was actually made.
• Remote access: the Labour Inspectorate can’t access your Excel file from their office.

Timestamp and Traceability

Each record (entry, exit, breaks) must include an automatic timestamp that cannot be altered without leaving a trace. If someone corrects a clock entry, the system must keep the original record and the modification.

Remote Access for the Labour Inspectorate

This is one of the most relevant innovations: the Inspectorate will be able to access your company’s records remotely and without prior notice. Your system must be online and data must be available immediately.

Recording Breaks and Overtime

Recording entry and exit isn’t enough. The law requires recording breaks and calculating overtime, differentiating between compensated and paid hours.

Applies to ALL Work Modalities

It doesn’t matter if your employees work in the office, from home, or on the road. Recording is mandatory for on-site work, remote work, hybrid work, and itinerant workers.

Retention for 4 Years

Records must be kept for a minimum of 4 years, accessible at all times to employees, legal representatives, and the Labour Inspectorate.

Who Does It Affect? (Spoiler: Almost Everyone)

The obligation to record working hours applies to all companies with employees, regardless of:

• The size of the company (from 1 employee)
• The sector of activity
• The type of contract (full-time, part-time, temporary, permanent)
• The work modality (on-site, remote, hybrid)

Only self-employed without employees and certain senior management figures with specific regimes are exempt.

What Are the Penalties for Non-Compliance?

Penalties for not keeping an adequate time record according to the current LISOS are applied per company, with increases depending on the number of affected workers:

• Minor violation: from 70 EUR to 750 EUR
• Serious violation: from 751 EUR to 7,500 EUR

A real example: a company without an adequate time record could receive a serious penalty of up to 7,500 EUR, with increases if it affects multiple workers. It’s not something you can afford to ignore.

The good news is that compliance costs a fraction of what the fine costs. With tools like Cleverfy, you can be compliant from 1.50 EUR per employee per month.

How to Comply with the Law Step by Step

Now let’s get down to business. These are the exact steps to get your company up to date with digital time recording.

Step 1: Assess Your Current Situation

Before doing anything, answer these questions:

• Do you currently keep any type of time record?
• Is it digital or manual (paper, Excel)?
• Does it record entry, exit AND breaks?
• Does it have automatic timestamp?
• Can your employees clock in remotely?
• Could you give access to a labour inspector right now?

If you’ve answered “no” to any of these questions, you need a digital time tracking system.

Step 2: Choose Time Recording Software

Not all time tracking software is the same. Make sure the one you choose meets these requirements:

• Digital record with automatic timestamp
• Complete traceability of modifications
• Multiple clocking: web, mobile app, kiosk mode
• Break recording and overtime
• Remote work: clocking from anywhere
• Access for inspection: consultation panel or immediate export
• Data retention for 4+ years
• Reports daily, weekly, and monthly

Tip: look for a tool that configures quickly and doesn’t require a lock-in contract. Cleverfy is configured in less than 10 minutes and you can cancel whenever you want.

Step 3: Set Up Your Company Account

Once you’ve chosen the software, the process is usually like this (using Cleverfy as an example):

1. Create the company account with your email and basic details
2. Add your work centres (office, shop, warehouse…)
3. Configure schedules for your employees (split shift, continuous, rotating…)
4. Invite your employees by email - they’ll receive a link to activate their account

With Cleverfy, all this is done in less than 10 minutes. No technical training or IT department needed.

Step 4: Communicate to Your Team

Before activating the system, inform your employees. No formal announcement needed, but everyone should know:

• What tool you’re going to use
• How to clock in: mobile app, web, Chrome extension, kiosk…
• When it starts: specific start date
• What to record: entry, exit, breaks
• Who to contact if they have questions

A brief email and a quick demo (5 minutes) is all you need.

Step 5: Start Recording

The day has come. Your employees can now start clocking in. The first days:

• Check that everyone clocks in: verify there are no employees without records
• Manage incidents: a forgotten clock, an incorrect entry… it’s normal at first
• Answer questions: there will be employees who need help with the app

Step 6: Establish Control Routines

Once the system is running, maintain these good practices:

• Weekly review: check that all employees have their complete records
• Monthly close: generate reports for payroll and archive them
• Incident management: resolve forgotten entries and corrections with justification notes
• Update staff: when an employee joins or leaves, update the system

Step 7: Prepare the Manual Contingency Plan

The new Royal Decree will require you to have an alternative manual procedure for when the digital system fails (server down, no internet, etc.). This can be as simple as a paper recording template that your employees fill in temporarily, and then you transfer the data to the digital system when it recovers.

It’s not going back to paper permanently: it’s having an emergency backup plan.

Clocking Options: How Do Your Employees Clock In?

One of the most common questions is how employees will clock in on a daily basis. The most common options are:

• Mobile app: The employee clocks in from their phone with one tap. Ideal for mobile workers or remote work.
• Web browser: Clock in from the computer, without installing anything. Perfect for offices.
• Chrome extension: One click from the browser. Very convenient for teams who work with the computer all day.
• Kiosk mode: A tablet or fixed device at the entrance. Employees clock in on arrival. Ideal for shops, factories, or restaurants.

The best approach is to offer several options so each employee uses whichever is most comfortable for them.

How Much Does Compliance Cost?

Less than you think. These are the most common options on the market:

• Basic solutions: from 1.50 EUR to 2.50 EUR per user/month
• Intermediate solutions: from 4 EUR to 6 EUR per user/month
• Complete HR suites: more than 8 EUR per user/month

For an SME of 10 employees, we’re talking about between 15 EUR and 60 EUR per month. Compare that with fines of thousands of euros and the decision is quite obvious.

With Cleverfy you pay from 1.50 EUR/user/month. And if you prefer a one-time payment, they have Lifetime Deals from 699 EUR for teams of up to 10 people.

Common Mistakes to Avoid

After helping hundreds of SMEs implement time tracking, these are the mistakes we see most:

1. “I already do it with Excel”

Excel will no longer be valid as the main system. It doesn’t have automatic timestamp, it’s not traceable, and it doesn’t allow remote access for the Inspectorate.

2. “I only record entry and exit”

The law also requires recording breaks and tracking overtime. Only noting arrival and departure times is not enough.

3. “My employees already know they have to clock in”

Communicating isn’t enough. You need to verify that clocking is being done correctly and manage incidents.

4. “It only applies to large companies”

No. The obligation applies from the first employee. It doesn’t matter if you have 3 or 300 workers.

5. “I’ll worry about it when the inspection arrives”

Inspections are random and penalties are retroactive. When the inspector arrives, you need to have the records from the last 4 years.

Frequently Asked Questions (FAQ)

Is digital time tracking mandatory in 2026?

Time recording has been mandatory since 2019 (Art. 34.9 ET), although current law doesn’t require digital format. The new Royal Decree on Digital Time Recording, currently in processing, will establish that all companies with employees must keep a digital time record with timestamp, traceability, and remote access for the Labour Inspectorate.

How long do I have to adapt?

The exact deadline depends on the definitive publication of the Royal Decree, but companies should prepare now. The Labour Inspectorate is already conducting checks and penalties apply from the first day of non-compliance.

Can I continue using Excel for time recording?

As the main system, no. Excel doesn’t meet the requirements for automatic timestamp, modification traceability, or remote access. You can have it as a manual contingency plan for when the digital system fails, but not as the usual method.

How much does time tracking software cost?

From 1.50 EUR per user per month. Cleverfy, for example, offers monthly plans from that price and Lifetime Deals from 699 EUR for small teams.

Do I need an IT person to set it up?

No. Modern tools are designed so anyone can configure them. With Cleverfy, complete setup takes less than 10 minutes.

What happens if an employee forgets to clock in?

The system should allow recording the incident and correcting it with a justification note. That correction is recorded in the history (traceability), so there’s no legal problem.

Does time tracking apply to remote employees?

Yes, without exceptions. Employees working from home must clock in just like on-site workers. The mobile app or web browser clocking are the most convenient options for them.

Conclusion: Compliance Is Easier Than It Seems

Mandatory time tracking is not a punishment: it’s a tool that protects both the company and the worker. And with current technology, implementing it is fast, cheap, and simple.

Summarising the steps:

1. Assess your current situation
2. Choose software that meets all requirements
3. Configure it (10 minutes)
4. Communicate to your team
5. Launch and maintain the system

If you want to see it in action, you can book a free Cleverfy demo or create your account directly. No commitment, no contract, and no lock-in.

Don’t wait for the inspection to arrive. Solving this today will take you less time than reading this article.