Companies will be legally required to record working hours and overtime hours digitally. Photo courtesy: Freepik
The Spanish government has announced reforms to the national working time registration system. The draft regulations issued by the Ministry of Labor would require companies to digitally record each employee’s start and finish times, break times and overtime hours.
Each additional hour must indicate whether it is paid as a salary or compensated with rest days to ensure clear records and increased transparency. The measure aims to standardize time tracking, protect workers’ rights and reduce disputes between employees and employers. This reform applies to all sectors and company sizes.
Companies are expected to update or implement digital systems that provide real-time visibility into working hours. A transition period is proposed to allow businesses time to adapt before full implementation. The draft Decree has been published for public consultation, but final implementation details and exact dates have not yet been confirmed.
Digital logging and overtime tracking
Mechanical structure according to the draft government ordinance
The draft ordinance requires companies to maintain accurate digital records of employees’ working hours. This includes start and end times, suspensions, overtime, and whether work is performed onsite or remotely. For each additional hour, records should indicate whether the compensation is monetary or time off, providing clarity for employees and auditors.
Labor inspectors can access these digital records to monitor compliance. This aims to prevent informal or unpaid overtime and give employees confidence that their working time is duly recognized and compensated according to legal standards. Experts note that accurate digital tracking could also improve payroll accuracy, scheduling, and internal control of employee working hours.
Impact on workers and employers
opportunities and challenges
Employees benefit from increased transparency regarding the hours they work and how overtime is paid. This measure will clarify whether compensation for additional work will be paid financially or through breaks, and will help employees plan their time and understand their rights.
Employers face operational challenges such as investing in compatible time tracking software, ensuring accurate records of multiple shifts, and managing remote work schedules. Moving to a digital system requires staff training, data security measures, and consistent record-keeping practices. Once the law is officially enacted, non-compliance could result in fines.
wider impact
Strengthening labor inspection in Spain
The reforms form part of a broader strategy to modernize Spain’s labor framework and align it with European employment directives. By standardizing digital tracking and explicitly recording overtime pay, authorities aim to reduce informal labor practices and increase workplace fairness.
The draft ordinance is currently under consultation, and details such as the final implementation schedule and specific definition of compensatory time off are still being finalized. Trade unions stressed that appropriate monitoring and enforcement should be ensured to ensure that employee protections are upheld.
highlights
- Companies must digitally record all working hours, including overtime and breaks.
- You must indicate whether each additional hour will be paid or compensated with rest days.
- Labor inspectors will have access to digital records to ensure compliance.
- This reform is currently under consultation. The exact implementation date has not yet been determined.
If enacted, this reform is expected to improve work-life balance, increase transparency, and reduce disputes over overtime pay. Employees will benefit from clearer records and employers will have guidance on complying with labor standards. This reform reflects Spain’s continued efforts to modernize its labor laws, while protecting workers’ rights and ensuring accurate reporting in all workplaces.
