Time Tracking Royal Decree 2026: Complete Guide for SMEs

Regulatory status (March 2026): The Royal Decree on digital time recording is currently before the Council of State under urgent processing. Approval is expected within the coming weeks. In parallel, the Ministry of Labour has opened a public consultation on the Ministerial Order that will develop the technical requirements (deadline 30 March). The current obligation to record working hours comes from Art. 34.9 of the Workers’ Statute (2019), which does not require digital recording. This article explains the expected requirements of the new RD according to known drafts.

What Is the Royal Decree on Digital Time Recording?

The Royal Decree on Digital Time Recording is the new regulation, whose approval is imminent, that will require all Spanish companies to keep a digital record of their employees’ working hours. It will complement the current Article 34.9 of the Workers’ Statute, which already requires time recording but allows manual methods. You can follow the full timeline of the regulation’s approval and the latest government updates on digital time recording.

With this new regulation, paper, Excel spreadsheets, and manual methods will no longer be valid as the main recording system.

What Exactly Will Change?

According to known drafts of the Royal Decree, these are the expected changes:

1. Digital Recording Only

Time recording must be mandatory digital. This will mean:

• Paper timesheets will not be valid
• Spreadsheets (Excel, Google Sheets) will not be valid
• Non-traceable manual methods will not be valid
• Only digital software with timestamp and traceability will be valid

2. Automatic and Traceable Recording

The system must guarantee that records:

• Are automatic (don’t depend on someone entering them manually)
• Have immutable timestamp (cannot be modified without leaving a trace)
• Include individual identification of each worker
• Record entry, exit, and breaks with exact time

3. Remote Access for the Labour Inspectorate

One of the most important expected innovations: the Labour Inspectorate will be able to access time records remotely and without prior request. This will mean:

• Your system must be available online
• Data must be centralised
• Access must be immediate, not “I’ll send it by email tomorrow”

4. Retention for 4 Years

Time records must be kept for a minimum of 4 years, including:

• All entries and exits
• All modifications made
• Incident justifications
• Complete history of each worker

5. Will Apply to All Modalities

It won’t matter where the employee works:

• On-site: Office, shop, construction site, factory
• Remote work: From home or any remote location
• Hybrid: Combination of on-site and remote
• Mobile: Itinerant workers, sales reps, delivery drivers

Who Does It Already Affect Today?

The obligation to record working hours already exists since 2019 (Art. 34.9 ET) and affects all companies with employees, regardless of:

• Size (from 1 employee)
• Sector of activity
• Work modality
• Type of contract (full-time, part-time, temporary)

Self-employed without employees are exempt.

What will change with the new Royal Decree is that recording must be digital and meet specific technical requirements for traceability, immutability, and remote access.

What Are the Current Penalties?

Penalties for non-compliance with time recording according to current LISOS are per company:

Type of violation	Penalty
Minor	70 EUR - 750 EUR
Serious	751 EUR - 7,500 EUR

Practical example: A company without adequate time recording could face a serious penalty of up to 7,500 EUR. These penalties are already applicable today under current regulations. There are real cases of companies fined for hiding overtime and even unfair dismissals due to fictitious time tracking.

Important: The amount increases progressively according to severity and circumstances (repeat offences, number of affected workers, etc.).

How to Prepare Your Company?

With the new Royal Decree on the verge of approval, preparing now is not optional: you’re already required to record working hours, and within weeks digital recording will be mandatory.

Step 1: Assess Your Current Situation

• Do you currently keep time records?
• Is it digital or manual?
• Does it include timestamp and traceability?
• Does it differentiate between on-site and remote work?

Step 2: Choose a Digital Tool

Look for software that meets both current regulations and the expected requirements of the new RD:

• Digital recording with timestamp
• Modification traceability
• On-site/remote differentiation
• Access for employees, representatives, and inspection
• Data retention 4+ years
• Daily and monthly totals
• Report export

Step 3: Configure and Implement

With tools like Cleverfy, setup takes less than 10 minutes:

1. Create your company account
2. Add your employees
3. Configure schedules and work centres
4. Your employees can start clocking in

Step 4: Keep the System Updated

Once implemented:

• Periodically check that all employees are clocking in
• Manage incidents and corrections
• Generate monthly reports for payroll
• Always have data accessible for a possible inspection

Will I Need a Manual Backup System?

According to the Royal Decree drafts, yes. It’s expected that companies must have an alternative manual recording procedure for contingency situations (system failures, lack of connection, etc.).

This won’t mean going back to paper as the main method - it’s a contingency plan. You can have a manual recording template that you only use when the digital system isn’t available, and then transfer that data to the digital system when it recovers.

Conclusion

Time recording is already mandatory today, and the new Royal Decree will tighten requirements by demanding it be digital, traceable, and immutable. If you have an SME, check our complete time tracking guide for SMEs. The good news is that preparation is easier and cheaper than you think. With tools like Cleverfy, you can have your company up to date in less than 10 minutes and from 1.50 EUR per employee per month.

Not sure if your company complies? Take the compliance test in 2 minutes and find out for free.

Don’t wait for the inspection to arrive. Start today.

---

Legal note: This article is for informational purposes and does not constitute legal advice. The Royal Decree on digital time recording is before the Council of State as of the last update (March 2026). Cleverfy complies with current regulations (Art. 34.9 ET) and is designed to meet the requirements of the new Royal Decree.