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)
• ❌ Self-declarations as sole method without digital support

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 happened in the restaurant case in the Basque Country fined for having no records, and in the inventory staff case where digital records did protect the company.

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 new time tracking Royal Decree envisions important changes. 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. To learn how to implement it correctly, check our complete time tracking guide for SMEs. 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