Spain's Economy Ministry requests one year for SMEs to adapt to digital time tracking

Spain’s First Vice President and Economy Minister, Carlos Cuerpo, has publicly called for SMEs to be given one year to adapt to the new digital time tracking system, instead of the 20 days set out in the draft Royal Decree on working time registration. The Labour Ministry, for its part, proposes a maximum of six months.

What the Economy Ministry said

In an interview with Cadena SER on Monday, Cuerpo explained that his proposal involves a transitional regime that gives small and medium-sized enterprises more time. “One of the proposals we’re putting on the table is that, instead of the 20 days currently proposed in the text, we move to one year,” said the minister.

The Economy Ministry had already issued two unfavourable reports on the Labour Ministry’s approach during the drafting process, recommending a longer transitional period and support measures for SMEs. Those reports were referenced in the Council of State’s opinion, which was unfavourable to the project.

Cuerpo stressed that the disagreement with Labour is not about the substance, but about implementation: “We share the purpose, we share the objective. We believe that the more balanced the implementation is, and the more we help our businesses, the easier it will be to achieve this time tracking system.”

Labour’s position: six months

The Labour Ministry rejects the one-year proposal. Sources from Yolanda Díaz’s department point out that the obligation to record working hours has been in force since 2019 — seven years now — and that what changes is the requirement for the system to be digital.

Labour does include a six-month transitional provision from the Royal Decree’s entry into force for the digital format obligations. In practice, this means that although the regulation will come into effect 20 days after publication in the Official Gazette (BOE), companies would have up to six months to get their digital system operational.

Díaz had already made her position clear in Congress last week following the Council of State’s opinion: “Even if it’s the last thing I do, time tracking will happen”.

The cost that concerns SMEs

One of the Economy Ministry’s arguments for requesting more time is the cost of adaptation. According to estimates gathered by the draft itself and by specialist media, the new digital time tracking system could cost between €50 and €55 per employee per year. This is an average estimate of software pricing based on the technical requirements the regulation will demand.

Additionally, companies that opt for an alternative system to the one defined by the regulation will need a report prepared by a qualified technician justifying that choice, which could generate additional costs.

At Cleverfy, our Basic plan costs €1.50 per employee per month (€18 per year), well below that €50 estimate. And it already meets the requirements set out in the draft, including remote access for the Labour Inspectorate.

What happens now

The Royal Decree’s approval is moving forward. Labour says it will make “minimal changes” to the text to strengthen data protection and give more room to collective bargaining, but the core aspects will not change: the time tracking system must be digital and accessible to the Labour Inspectorate.

The debate now centres on the deadlines — whether it will ultimately be 6 months or 12 — and the text is expected to go before the Council of Ministers in the coming weeks.

Is it worth waiting?

Regardless of the deadline that is approved, companies that already have a digital time tracking system in place won’t need to change anything. Those still recording attendance on paper or spreadsheets will need to adapt. It’s worth noting that penalties for non-compliance already apply under current regulations.

If you’d like to see how a digital time tracking system that already meets the upcoming regulation works, try Cleverfy for free.

Legal note: This article is for informational purposes only and does not constitute legal advice. The Royal Decree on digital time tracking is currently being processed and its final content may vary.

---

Sources: El País, Expansión, Autónomos y Emprendedor