Do Senior Executives Have to Clock In? What the Law and Courts Say

Every time a company implements a time tracking system, the same question comes up: do executives have to clock in too?

The short answer is “it depends.” Getting it wrong can be costly. A January 2026 ruling from the Madrid High Court of Justice just showed that companies who assume too quickly that their senior staff are exempt may be in for a rude awakening.

The general rule

Article 34.9 of the Workers’ Statute leaves little room for interpretation:

“The company shall guarantee a daily record of working hours, which must include the specific start and end time of each worker’s shift.”

(Original: “La empresa garantizará el registro diario de jornada, que deberá incluir el horario concreto de inicio y finalización de la jornada de trabajo de cada persona trabajadora.”)

It says each worker. No distinction between roles, seniority levels, or salaries. From the entry-level employee to the CFO.

But there’s one exception that creates all the confusion.

The exception

Royal Decree 1382/1985 governs a special employment relationship: senior management (alta dirección). Article 2 defines these workers as:

“Those workers who exercise powers inherent to the legal ownership of the Company, relating to its general objectives, with autonomy and full responsibility limited only by criteria and direct instructions from the person or governing bodies of the entity.”

(Original: “Aquellos trabajadores que ejercitan poderes inherentes a la titularidad jurídica de la Empresa, y relativos a los objetivos generales de la misma, con autonomía y plena responsabilidad sólo limitadas por los criterios e instrucciones directas emanadas de la persona o de los órganos superiores de gobierno y administración.”)

Article 7 of the same decree establishes that their working hours, schedules, and leave are governed by their contract, not by the general rules of the Workers’ Statute.

Furthermore, the Ministry of Labour’s Guide on Time Tracking (2019) clarified that senior managers with a special employment relationship under RD 1382/1985 are not subject to the time tracking obligation.

The problem: almost nobody qualifies as “senior management”

Most executives in Spain are not senior management in the legal sense.

Just because someone is a “regional director,” “international delegate,” or “department head” doesn’t make them senior management under RD 1382/1985.

For an executive to be exempt from time tracking, all of these conditions must be met:

1. They exercise powers inherent to the company’s legal ownership — Managing a department or branch isn’t enough
2. They act with autonomy and full responsibility — Limited only by instructions from the board or owner
3. Their employment relationship is formalized as special under RD 1382/1985
4. Their contract expressly reflects this status

If any of these is missing, no matter what their business card says, they’re subject to time tracking like any other employee.

A real case from the Madrid High Court

In January 2026, the Madrid High Court of Justice ruled on a case that perfectly illustrates this confusion (STSJ M 189/2026, Appeal 673/2025).

The facts: A delegate at an installations company worked in Germany and the Netherlands as the top person responsible for those offices. She managed construction projects, oversaw staff, and made operational decisions. The company didn’t track her working hours.

The company’s argument: That “management or senior management personnel, such as Board members or the executive team, are not required to clock in because their extremely high level of responsibility and autonomy gives them absolute freedom to determine their work schedule.”

(Original: “el personal directivo o de alta dirección, como los miembros del Consejo de Administración o del equipo ejecutivo, no están obligados a fichar porque por su elevadísimo nivel de responsabilidad y autonomía, tienen libertad absoluta para determinar su horario de trabajo.”)

What the court said: That if the worker had a special employment relationship under Article 1.3.c of the Workers’ Statute, she could qualify as senior management. But the court “does not have a single piece of evidence from which to infer that this is the case.” Being “the delegate holding the position of greatest responsibility at the company’s office” was not enough to consider her senior management.

The ruling upheld the judgment: €67,964.47 gross in overtime pay. Without time records, the company couldn’t challenge the more than 1,000 overtime hours claimed by the worker.

Where the red line falls

The STSJ M 189/2026 is not an isolated case. Courts have been drawing the line between an executive with significant responsibility (who must clock in) and true senior management (who doesn’t):

• CEOs and managing directors with a senior management contract and a “not subject to working hours” clause → Exempt from tracking
• Department heads, delegates, regional managers with a standard contract → Required to track
• General managers who report to a board but don’t exercise ownership powers → Grey area, case by case

The deciding factor isn’t the job title or salary level. It’s the legal nature of the employment relationship. To learn more about the consequences of not tracking, see our article on penalties for failing to keep time records.

What to do in your company

1. Review your executives’ contracts

If an executive has a standard employment contract (even if they earn a lot and have significant responsibility), they must clock in. No debate.

2. If you have real senior management, formalize it

The contract must expressly reflect the special employment relationship under RD 1382/1985. Without this formalization, the tracking exemption won’t hold up in court.

3. When in doubt, track

The risk of tracking a senior executive’s hours is zero. The risk of NOT tracking someone who turns out not to qualify can mean a serious fine (€751 to €7,500) for violating Article 7.5 of LISOS, plus a potential overtime claim where the company loses its main line of defense: the time record.

4. Use a system that handles different roles

Your time tracking tool should let you exclude properly accredited senior management while tracking everyone else — including executives with standard contracts.

With Cleverfy you can set up roles and exceptions in two clicks. Each employee clocks in as required, and you can rest easy.

Frequently asked questions

Is a CEO always exempt from time tracking?

No. Only if they have a senior management contract formalized under RD 1382/1985. Many CEOs have standard contracts and are therefore required to track their hours.

What happens if the Labour Inspectorate finds that an executive isn’t clocking in?

If the executive doesn’t have a senior management contract, the company faces a serious fine for breaching Article 34.9 of the Workers’ Statute (€751 to €7,500). Additionally, if that executive claims overtime, the lack of records severely weakens the company’s position.

Do board members have to clock in?

Board members whose activity is limited to “purely and simply performing the duties inherent to their position” (Art. 1.3.c Workers’ Statute) fall outside the scope of the Workers’ Statute. They don’t need to clock in. But if they also perform executive functions under an employment contract, the situation changes.

What about working partners?

It depends on their relationship with the company. If they have an employment contract (standard or senior management), the rules we’ve discussed apply. If they’re self-employed corporate partners (autónomos societarios), they’re not subject to the time tracking requirement under Art. 34.9 of the Workers’ Statute.

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Sources: Art. 34.9 Workers’ Statute, Royal Decree 1382/1985, STSJ M 189/2026

For a broader view of the regulations, check our complete guide to time tracking for SMEs.

Legal notice: This article is for informational purposes only and does not constitute legal advice. Each case requires an individualized analysis of the executive’s employment relationship.