Penalties for not having time tracking records: what the law says

Time tracking has been mandatory since 2019

Article 34.9 of the Workers’ Statute establishes that all companies must ensure daily time tracking of their employees, including:

• Specific start time
• Specific end time
• Retention for 4 years

It’s not optional. There are no exceptions based on company size.

What happens if I don’t have records?

The Law on Violations and Penalties in the Social Order (LISOS) classifies violations:

MINOR Violation (art. 6 LISOS)

Fine: €70 - €750

• Minor formal defects in the records
• Occasional disorganization without bad faith

SERIOUS Violation (art. 7 LISOS)

Fine: €751 - €7,500

• Not having a time tracking system
• Not keeping records for 4 years
• Not providing access to workers or representatives
• Incomplete systems (only entry, no exit)

VERY SERIOUS Violation (art. 8 LISOS)

Fine: €7,501 - €225,018

• Deliberate falsification of records
• Obstruction of Labor Inspection
• Data manipulation with intent to defraud

How does Inspection calculate the fine?

Within each range, the amount depends on:

1. Intent — Was it negligence or bad faith?
2. Number of affected workers — More employees = more serious
3. Harm caused — Unpaid overtime, for example
4. Repeat offenses — Is this the first time or are there prior incidents?
5. Company revenue — Economic capacity

What Inspection looks for during a visit

When an inspector reviews your time records, they check:

• ✅ That a system exists (app, terminal, signed paper)
• ✅ That it records start and end of each workday
• ✅ That it’s accessible to workers and representatives
• ✅ That it’s retained for 4 years
• ✅ That it’s reliable (not easily manipulated)

Systems that cause problems

• ❌ Excel without protection or signatures
• ❌ Paper sheets without worker signature
• ❌ “Eyeballed” clock-ins made by supervisors
• ❌ Systems that allow modification without trace
• ❌ Incomplete records (only entry or only exit)

The hidden risk: losing labor lawsuits

Beyond Inspection fines, there’s a greater risk:

If an employee sues you for overtime and you don’t have records, courts presume they’re right.

This can result in judgments of thousands of euros, especially if:

• The worker had been with the company for years
• There was high work volume
• Other colleagues corroborate the claim

What changes are expected?

The Government has announced its intention to:

• Require records to be digital (not paper or Excel)
• Impose interoperability requirements with Inspection systems
• Tighten penalties with fines per affected worker

These changes are currently being processed. When approved, companies will have an adaptation period.

The prudent approach: get ahead with a digital system that already complies.

How to protect your company

1. Implement a reliable system — That records entry, exit, and is immutable
2. Ensure retention — 4 years minimum, with backups
3. Facilitate access — Workers and representatives must be able to consult it
4. Document procedures — Have a written protocol
5. Train your team — Everyone should know how and why they must clock in

Conclusion

Penalties for not having time tracking records are real and enforced. But the greatest risk isn’t the Inspection fine: it’s losing an overtime lawsuit without having evidence.

A good time tracking system is your best investment in legal peace of mind. Discover Cleverfy and comply with regulations starting today.

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Sources: Art. 34.9 ET, LISOS arts. 6, 7 and 8, RD 8/2019