Choosing Time Tracking Software? Read This First

⚠️ Regulatory Status (February 2026): Spain’s new Royal Decree on digital time tracking is currently being processed and has not yet been published in the Official State Gazette (BOE). This article explains the expected requirements based on known drafts. Final content may vary.

The time tracking software market is full of options. But not all solutions being sold today will be ready for what’s coming. If you’re evaluating tools, this article will help you separate those that comply from those that just promise.

The Problem: Not All Solutions Are Ready

The draft of the new Royal Decree establishes specific technical requirements that many current systems don’t meet. And it’s not just minor details they’re missing—they lack core functionalities that require proper development.

If you sign up now for a non-compliant solution, you’re exposing yourself to:

• Paying for something that won’t work — especially if you commit to an annual plan
• Having to migrate your data — the complete time tracking history for all employees
• Retraining your team — explaining yet another new system, another app, new processes
• Double adaptation period — the friction of switching isn’t just technical, it’s human
• Wasted time — yours and your HR team’s

Penalties for non-compliance with time tracking can reach €187,515 in serious cases. And with the new Royal Decree, fines of up to €10,000 per worker are expected for falsifying records. This is not the time to improvise.

---

What the New Royal Decree Actually Requires (Real Draft Requirements)

The draft currently being processed establishes these technical requirements. These aren’t suggestions—they’re obligations. You can read more about the full context in our Royal Decree Time Tracking 2026 Guide.

1. Real Traceability of Modifications

Any modification to records must:

• Require authorization from the company AND the employee
• Leave an indelible trace of who made the change and when
• Preserve the complete history of all changes

This means if an employee clocks in at 9:05 and it’s later corrected to 9:00, there must be a record of: who requested the change, who authorized it, when it was made, and what the previous value was. A simple “notes” field doesn’t comply.

Ask your provider: Can I see the full history of all modifications to a time entry, including who authorized them and when?

2. Granular Break Management

The record must include:

• Hour and minute of start and end of each break
• Indication of whether each break counts or doesn’t count as effective work time
• Compliance with limits established in collective agreements

Many companies have collective agreements that establish, for example, that the first 15 minutes of break count as work but after that they don’t. Or that lunch breaks don’t count, but mid-morning breaks do. The system must be able to handle this complexity.

Ask your provider: Can I configure different types of breaks and define which ones count as work time according to my collective agreement?

3. Hour Calculation and Classification

The system must:

• Classify hours as regular, overtime, or complementary
• Indicate whether overtime is compensated with time off or paid
• Calculate daily AND monthly totals

Overtime calculation seems simple, but it isn’t. It must account for national and local holidays (which vary by municipality), justified absences, vacations, paid leave, the applicable collective agreement, hour banks if they exist… An incorrect calculation can cost you dearly in an inspection.

Ask your provider: Does the system automatically calculate overtime taking into account holidays, absences, and the applicable collective agreement?

4. Remote Access for Labor Inspection

Labor Inspection must be able to access:

• Immediately
• Remotely (without physical presence)
• In a processable and readable format, compatible with commonly used systems

This is an important change. Until now, Inspection had to request records and the company provided them. With the new Royal Decree, Inspection will be able to directly access your records remotely. If your system doesn’t allow this, you’re not compliant.

To better understand how a labor inspection works, check our guide on Labor Inspection and time tracking.

Ask your provider: How would an inspector access my company’s records remotely? What format are they exported in?

5. On-site vs. Remote Work Identification

Each work period must indicate:

• Whether it’s performed on-site or remotely

With the rise of hybrid work, this is fundamental. The system must know how to distinguish when an employee is clocking in from the office versus from home. This can be done by geolocation, WiFi network, or employee declaration, but it must be recorded.

If you have remote employees, you’ll want to read our guide on time tracking for remote and hybrid work.

Ask your provider: Does the system automatically distinguish between on-site and remote clock-ins?

6. Standby and Availability Time

When applicable, the following must be recorded:

• Waiting times
• Times when the employee is at the company’s disposal but not performing effective work

This especially affects sectors like transport, security, or healthcare, where there are on-call or availability times that aren’t effective work but must be recorded.

Ask your provider: Can I record on-call or availability time separately from effective work time?

---

Don’t Trust “We’ll Have It Ready”

When you ask about these functionalities, demand to see them working. Today.

Many of these features seem simple on paper but are complex to implement well:

• Real traceability isn’t the same as a “notes” field. It’s a complete audit system that records every change with its author, timestamp, and authorization. Implementing it properly requires designing the database from scratch with this in mind.

• Overtime calculation isn’t a simple subtraction. It must account for national and local holidays, absences, vacations, leave, the applicable collective agreement, hour banks… And it must be updated every year with new holidays.

• Break management by agreement requires the ability to configure different rules for each type of break, with maximum and minimum limits, and have the system apply them automatically. It’s not enough for the employee to “declare” the type of break.

• Access for Inspection requires a robust export system, with standard formats (probably XML or JSON with a defined schema), that includes all required information in a readable and verifiable way.

If your provider says “it’s in development” or “we’ll have it ready when the Royal Decree comes into force,” think twice:

• How many different companies will need to test it before it works properly?
• What happens if the Royal Decree comes into force and they still have bugs?
• Will you be the beta tester while Labor Inspection could knock on your door?

Don’t buy promises. Buy solutions you can test today.

If you’re still using Excel, we recommend reading why Excel isn’t enough for time tracking before making a decision.

---

Quick Checklist Before Signing

Before signing with any time tracking provider, verify:

• Can they show me modification traceability working?
• Can I configure break types that count or don’t count according to my agreement?
• Does the system automatically calculate overtime considering holidays and absences?
• How would Labor Inspection access remotely?
• What format is data exported in?
• Do they differentiate between on-site and remote clock-ins?
• How long have these functionalities been in production?
• What companies are already using them?

If they can’t answer with a demo instead of words, keep looking.

Need help evaluating options? Check our digital time clock software comparison 2026.

---

Frequently Asked Questions

Can I keep using Excel while the Royal Decree is being approved?

Technically yes, since the Royal Decree is not yet in force. But Excel has serious problems: it’s modifiable (doesn’t comply with traceability), doesn’t allow remote access for Inspection, and doesn’t manage breaks or overtime automatically. We recommend migrating as soon as possible to avoid rushing when the regulation is published.

What happens if I contract software that later doesn’t comply?

You’ll have to change providers, which means: migrating historical data, retraining the team, potentially paying for two services during the transition, and assuming the risk of penalties if Inspection acts before you complete the switch.

When does the new Royal Decree come into force?

The draft is in advanced processing. It will come into force 20 days after publication in the BOE. Current estimates point to sometime in 2026, but there’s no confirmed date.

Will self-declaration time tracking by employees be valid?

Yes, the draft allows employees to record their own hours. What matters is that the system meets the technical requirements (traceability, digital format, access for Inspection). The clocking method (app, web, terminal) is flexible.

Do I need a different system if I have remote employees?

Not necessarily a different system, but a system that distinguishes between on-site and remote work. The record must indicate for each period whether it was performed from the office or remotely.

---

Conclusion

The new Royal Decree will force many companies to change systems. The question is: would you rather choose well now, or choose twice?

Take the time to verify that the solution you’re contracting actually meets the real requirements. Ask for demos. Ask technical questions. And if something is “in development,” wait until it’s finished before committing.

Your peace of mind during an inspection—and your team’s—depends on it.

---

At Cleverfy, we developed our system thinking from day one about the new Royal Decree requirements. If you want to see for yourself, request a demo and we’ll show you every functionality. You can also check our pricing — no surprises, no fine print.