The Government approved on September 30 the urgent processing of the new time‑tracking law through a Royal Decree, which means it will come into force without needing to pass through Parliament. The regulation introduces a digital, objective, and accessible time‑tracking system that will allow the Labor Inspectorate to monitor compliance with working hours on a massive and ongoing basis.
If you are a CEO or HR director, this reform will have a direct impact on your organization: it’s not just about avoiding penalties, but about adapting your processes to ensure productivity, work–life balance, and regulatory compliance.
What does the new time‑tracking law involve?
The reform arises as a response to a persistent problem: in Spain, more than 2.6 million unpaid overtime hours are worked every week. The aim of the Ministry of Labour is to ensure that the time‑tracking system is truly effective and complies with the principles of objectivity, reliability, and accessibility.
Main new features:
- Mandatory digital time tracking: the regulation requires the system to be electronic, including employee identification and the recording of interruptions.
- The entire workday: both actual working time and on‑call or availability periods must be recorded.
- Immediate and remote access: the Labor Inspectorate will be able to consult it at any time, even remotely.
- Right to disconnect: the system will include the obligation to respect working hours and limit communications outside the established schedule.
- Right to disconnect: the system will include the obligation to respect working hours and limit communications outside the established schedule.
How will it affect CEOs and HR directors?
For senior management, this law represents not only a compliance challenge but also an opportunity for modernization.
Risks of not adapting:
- Financial penalties in case of non‑compliance.
- Loss of corporate reputation due to labor disputes.
- Greater exposure to audits and sanctions from the Labor Inspectorate.
Opportunities when implementing an effective system:
- Better talent management by having reliable data on working hours, absenteeism, and productivity.
- Competitiveness compared to companies that are still failing to comply with the regulations.
- Regulatory compliance and an enhanced reputation as a responsible employer.
Practical examples: how to apply it in your company
Case 1: remote work
A remote employee must record their working hours through a digital software solution, with the ability to differentiate breaks and availability periods.
Case 2: rotating shifts
The system will clearly identify regular hours, overtime, and rest periods between shifts.
Case 3: work–life balance and digital disconnection
The time‑tracking system will help verify that the company complies with the worker’s right not to receive calls or emails outside their working hours.
Tips to prepare your company
Assess your current system
If you are still managing time tracking with spreadsheets or manual check‑ins, it will be insufficient under the new regulation.
Implement an effective time‑tracking software
One of the most recommended options is Factorial, which allows you to:
- Record the workday in an automatic, simple, and fully compliant way.
- Generate inspection‑ready reports in a matter of seconds.
- Integrate with other HR management processes.
- Avoid penalties by ensuring regulatory compliance.
Train your employees and managers
A time‑tracking system will only be effective if the entire workforce understands how it works and is committed to using it correctly.
The new law and the HR strategy
Beyond simply complying with the regulations, this change should be seen as a driver of cultural transformation. A reliable digital time‑tracking system can become a strategic tool to:
- Reduce costs associated with uncontrolled overtime.
- Improve work–life balance and employee well‑being.
- Optimize shift planning and workload distribution.
Download our free guide on time tracking
Digitize time tracking to increase security and efficiency
The new time‑tracking law is imminent and will require all companies to make a profound shift in labor management. The challenge is not only to avoid penalties, but to turn regulatory compliance into a competitive advantage.
With solutions like Factorial, your company can record working hours in an automatic, simple, and legally compliant way, reducing risks and streamlining daily management.
At ABD Consulting and IT Solutions, we help companies implement time‑tracking systems integrated with HR software and cloud‑based solutions. With our experience, we ensure that your organization complies with the regulations in a secure, efficient, and fully tailored way.
Contact us and discover how to adapt your organization to the new regulations before it’s too late.