Working Hour Registration: A Legal Obligation Many Businesses Still Ignore
Since May 2019, Royal Decree-Law 8/2019 has required all businesses in Spain to record each employee’s working hours daily, regardless of company size or sector. The law does not specify a particular method, but does require that the record be reliable, accurate, and accessible to both employees and the Labour Inspectorate.
Despite having been in force for several years, many businesses in Tenerife and the Canary Islands are still failing to comply with this obligation, or are complying inadequately. The reasons vary: lack of awareness, inertia, or the belief that penalties will not apply to them. The reality is that Labour Inspectorate controls are increasing, and fines for non-compliance can reach €6,250 per violation.
What Exactly Does the Law Require?
Article 34.9 of the Workers’ Statute, as amended by the Royal Decree-Law mentioned above, establishes the following obligations:
Daily Registration
The company must record the start and end times of each worker’s shift on every working day. Recording only the total number of hours is not sufficient — entry and exit data must be recorded.
Four-Year Retention
Records must be kept for four years and must remain available to employees, their legal representatives, and the Labour Inspectorate.
Employee Access
Employees have the right to access their own working hour records. The system used must allow them to consult their registrations.
Negotiation with Employee Representatives
In companies with union representation, the registration system and its organisation must be agreed in advance with the works council or employee delegates.
Time Tracking Systems: Available Options
The law allows freedom of method, but in practice there are important differences between the options available.
Paper-Based Registration (Not Recommended)
Manual signing of a paper sheet is legal, but has obvious disadvantages: it is easily manipulated, difficult to store and manage at volume, and does not allow analysis or automation.
Mobile Applications with Geolocation
These allow employees to clock in from their phone, with GPS validation that they are at the workplace (or at an authorised remote working location). They are an economical and flexible solution, particularly suitable for mobile teams or remote workers.
Advantages: low cost, easy implementation, accessible from any device. Limitations: requires employees to have a smartphone; privacy concerns may arise (geolocation).
Physical Time Terminals (Fingerprint, Card, PIN)
Physical time terminals installed at workplace entrances are the most robust solution for teams that always work in the same location.
- Fingerprint or facial recognition: maximum reliability, eliminates “buddy punching”
- RFID card: economical and easy to use, though the card can be passed to another employee
- PIN code: the most basic option, adequate when reliability is not critical
Advantages: very reliable, no smartphone required, centralised data. Limitations: hardware investment, requires physical installation, does not work for off-site workers.
HR Management Software with Time Tracking Module
Many HR platforms (Factorial, Personio, A3 Innuva, Sage HR) include a working hour control module. These are the most comprehensive option because they integrate time tracking with absence management, holidays, shift planning, and payroll.
Advantages: complete view of personnel management, report automation, built-in legal compliance. Limitations: higher cost, requires training and implementation.
Microsoft Teams and Microsoft 365
If your business already uses Microsoft 365, there are options for recording working hours directly from Teams or from integrated applications such as Shifts (for shift management). This is not the most complete time tracking solution, but it may be sufficient for small organisations.
Privacy and Data Protection Considerations
Working hour registration involves collecting personal data from employees (schedules, geolocation in some cases), which creates obligations under GDPR.
Key Points to Consider
- Inform employees: before implementing the system, workers must receive clear information about what data is collected, for what purpose, and for how long it is retained.
- Data minimisation: only the data strictly necessary for the legal obligation should be collected (start and end times of the working day).
- Geolocation: if the system records the employee’s location, this must be justified, communicated, and limited to working hours.
- Restricted access: only those with a need to know should have access to the records (HR, management, labour inspector if requested).
Implementing a digital time tracking system is itself a data processing activity that must be included in the company’s Record of Processing Activities.
How to Choose the Right Time Tracking System for Your Business
The choice of system depends on several factors:
| Factor | Recommended System |
|---|---|
| Employees always in office | Physical terminal (fingerprint/card) |
| Mobile or remote employees | Mobile app with geolocation |
| Multiple locations | Central software + mobile apps or terminals at each site |
| Already have HR software | Time tracking module from the same provider |
| Use Microsoft 365 | Shifts/Teams + time tracking complement |
| Small business, limited budget | Basic mobile app with record export |
What Happens if the Labour Inspectorate Visits Your Business
A Labour Inspectorate visit may be scheduled or unannounced. If they request the working hour records, you must be able to present:
- Records for the past 4 years for all employees
- The system used and its description
- Information provided to employees about the system
- In companies with union representation, the agreed arrangement
If you cannot present these records, or if the system is unreliable (for example, all employees clock in at exactly the same time, suggesting the data is fabricated), the Inspectorate may initiate a penalty proceeding. Violations are classified as:
- Minor: no record or record with minor irregularities (fine up to €750)
- Serious: incomplete record or not available for inspection (fine from €751 to €7,500)
- Very serious: falsification of records or refusal to show them (fine from €7,501 to €225,018)
How SOINTE Can Help You Implement Digital Time Tracking
At SOINTE we support businesses in Tenerife and the Canary Islands throughout the digital time tracking implementation process:
Needs Analysis
We assess your company’s characteristics (number of employees, workplaces, working arrangements, budget) and recommend the most suitable solution.
Hardware Supply and Installation
If the chosen solution includes time terminals (fingerprints, RFID cards), we handle the supply, installation, and configuration of the hardware at your premises.
Software Configuration
We configure the time tracking platform with your company’s employees, workplaces, schedules, and shifts. We ensure the generated reports meet the legal requirements.
Training
We train employees in using the system and the HR team in managing incidents, querying records, and exporting reports for inspection purposes.
Integration with Payroll and HR Systems
If your company already has payroll or HR software, we explore the possibility of integrating the time tracking with that system to automate the process.
Take the Step Towards Legal Compliance
Digital time tracking is not just a legal obligation — it is a management tool that, properly implemented, helps identify work patterns, plan shifts more accurately, and resolve disputes about hours worked with objective data.
If your business in Tenerife still does not have a legally compliant working hour registration system, do not wait any longer. Contact us for a no-obligation initial consultation. We will analyse your case and propose the most suitable and cost-effective solution for your business.
Also check out our IT consulting service and our process automation service to discover how we can help you digitalise more processes in your business.