Practical guide to mandatory digital time tracking for SMEs

This guide gets straight to the operational point: what the Inspectorate reviews exactly when it requests the record, how to migrate from paper to digital clock-in without disrupting operations, and which clock-in method to choose according to how your workforce operates. For the introductory regulatory context you can start with the article on mandatory digital time tracking on the blog.

What "mandatory digital time tracking" means

The phrase does not appear literally in the Workers' Statute (Estatuto de los Trabajadores). It is the popular name given to the regulatory change introduced by the draft law on reducing the working day processed during 2024 and 2025: the working-time record that has been mandatory since 2019 must now be kept through a digital, personal, tamper-proof system, accessible in real time.

In plain language: paper and spreadsheets are no longer valid. The organisation needs an IT system that records entries and exits, allows the worker to consult their own record whenever they want, and lets the Labour Inspectorate see it in real time without any preparation.

The change affects every organisation with at least one employee, whatever its size or sector. The only exception are the groups already outside article 34.9 of the Workers' Statute: senior executives, self-employed workers, cooperative members and certain special employment relationships.

Why the rule has been changed

The change did not come out of nowhere. It responds to a problem identified by the Labour Inspectorate during the first years of applying RDL 8/2019: the vast majority of organisations the Inspectorate visited kept the record on paper, and the Inspectorate could not check whether that paper was real or filled in at the moment of the visit.

The official figures confirm this. The 2023 Inspectorate Report records a 40% increase in actions on working-time records compared to the previous year. In sectors such as hospitality, retail, construction or transport, inspectors were finding identical signatures on every sheet of the month or clearly reconstructed records.

The digital record solves the problem by design. When the clock-in is made at the moment with individual identification, and cannot be modified retroactively without leaving a trace, it is practically impossible to falsify the working day. And when the system is accessible online to the inspector, there is no margin to "prepare" the record when the Inspectorate notifies its visit.

What really changes in the organisation's day-to-day

It depends on the starting point. Three common situations can be identified:

Organisations that already have time-tracking software

For many of them, nothing changes operationally. If the system already records individual entries and exits, keeps a tamper-proof history and allows the record to be exported, it complies. What is worth reviewing is the real-time accessibility side: the worker must be able to consult their own record (the monthly sheet the manager sends is not enough) and the Inspectorate must be able to access it without manual intervention from the vendor.

Organisations that keep the record on paper or in Excel

These are the ones that feel the change most. It is time to migrate. The transition involves loading the workforce into a system, defining schedules and shifts, choosing a valid clock-in method (PIN, card or similar), and training the person who will run the system day to day. In SMEs of up to 50 employees, with a single site and stable schedules, it is a matter of days. In larger organisations or with rotating shifts and several sites, between one and three weeks.

Organisations that keep no record at all

They are a minority, but they exist. If your organisation is in this group today, in 2025 you have a double problem: you are failing the record-keeping obligation since 2019 and you are not prepared for the new regime. The average penalty imposed in 2023 was around 4,500 euros per notice. The obvious recommendation is to act before the Inspectorate detects it, not after.

Checklist to sail through an inspection

The Labour Inspectorate, when it requests the record, usually asks for three things: the clock-in history for the last three months for all workers at the visited site, the export in a consultable format (signed PDF or CSV), and the guarantee that the record has not been modified retroactively. These are the seven points worth having under control:

  1. All workers present today are registered in the system, including recent hires and temporary staff. It sounds obvious, but it is the most common issue: the organisation keeps a record of the stable workforce and forgets contracts for a specific job or substitutions.
  2. Each worker clocks in with individual identification. A single terminal that the whole team uses with the same PIN is not valid: the record is considered collective and without traceability.
  3. Managers have access to the historical record. If the only person who knows how to log in is the manager and they are on holiday when the Inspectorate arrives, there is a problem.
  4. The last 90 days of records for the whole site can be exported in a few minutes. The Inspectorate waits a few minutes, not a day. If your system takes longer, review the bulk export.
  5. Corrections have traceability. A forgotten clock-in gets corrected (that is normal), but the system must record who approved it and when. Inspectors look for signs of manipulation by reviewing correction patterns.
  6. Retention is at least 4 years. The limitation period for social-order infringements requires it.
  7. The worker can consult their own record without asking the manager. This is a new requirement of the 2025 law. If your system does not allow it, prepare for the transition.

How to migrate from paper to digital without drama

Resistance to change does not come from the software: it comes from the feeling that "we have to learn yet another thing". The way to reduce it is simple: don't leave the HR manager or the general manager on their own.

Week 1: data collection

The data needed for onboarding is gathered: current workforce with ID and contract, usual schedules per worker or per shift, applicable collective agreements, particularities (on-call duties, split shifts, special leave). This is the work that is least appealing and where many vendors leave the client on their own. At etempus we handle it ourselves in a 30-45 minute call.

Week 2: configuration and pilot test

The system is configured with the collected data and tested with a small group (one site, one team, one shop) for five to seven days. The aim is to spot loose ends: schedules that don't fit well, leave types not reflected in the configured collective agreement, special cases that had not come up during the initial data collection.

Week 3: full rollout

The system is extended to the entire workforce. It is common to brief the team in person (an email is not enough): what it is, how to clock in, what to do if you forget, who resolves questions. The first month usually generates queries; from the second month, the noise drops significantly.

Weeks 4-5: first monthly close together

The first month closed with the new system is reviewed carefully. At etempus we do this in a 30-minute call with the HR manager: the month's list is reviewed, pending incidents are resolved, the record is closed and signed. From then on, the client does it alone.

Clock-in methods: what to choose based on your workforce

The choice of method depends on where your workers are during the day, more than on how many they are.

  • Personal PIN on a tablet or mobile. This is the most common option in offices, shops, restaurants and workshops. The worker clocks in with a private code on a tablet or mobile at the entrance door. The AEPD prefers it over biometrics because it does not process sensitive data.
  • App on the personal mobile with geolocation. This is the option for sales staff, technicians, drivers and, in general, for mobile workforces. The app checks that the worker is at the work location at the time of the clock-in. It does not carry out continuous tracking (the AEPD does prohibit that).
  • Web portal. For remote workers and employees with a computer. The worker signs in on the web with their username and clocks in with a click.
  • Proximity card. In industrial environments with many employees and rotating shifts. It is faster than a PIN, but requires specific hardware. It is usually combined with PIN for cases of forgotten cards.

The important thing is that you can combine several methods within the same organisation. A shop with 10 in-store employees can use PIN on a tablet in the shop and a mobile app for the manager who moves between sites. You don't need to standardise by system, you need to standardise by worker: each one has a single assigned method to avoid duplicates.

Five common mistakes the Inspectorate spots

  • Identical clock-ins day after day for months. When the record shows all workers entering at 8:59 and leaving at 17:01 for 60 days in a row, the inspector knows that record is not real. Well-configured digital systems generate records with the natural variability of a real workforce (someone arrives late one day, someone leaves early another).
  • A single terminal for the whole workforce with a single collective PIN. It sounds like a joke, but it is seen. It is a serious breach by definition: there is no individual identification.
  • Mass corrections at the end of the month. Thirty corrections appear on day 30 signed by the manager. The Inspectorate reads this as manual adjustment of the record to balance undeclared overtime.
  • Not recording breaks when the collective agreement provides for them. In hospitality, retail and transport, collective agreements usually set specific breaks. If the system does not record them, the total working-day calculation is inaccurate and the Inspectorate spots it.
  • Records without the worker's signature. The signature is not mandatory on each individual clock-in (the digital system replaces it), but it is required on the monthly close: the worker must validate that they acknowledge their hours. Many systems forget this.

How we set it up

At etempus we have spent 12 years implementing time tracking in SMEs. The way we work is simple: the first call is with you, not with a salesperson. In 30 minutes we know whether etempus fits: how many employees you are, which clock-in method suits you, what particularities you have. If it fits, we onboard the organisation this same week.

We handle onboarding ourselves: we load the workforce, configure schedules and shifts according to the collective agreement and the particularities you have told us about, and train the person who will run the system. The first monthly close is done together.

No setup fee. No lock-in. If after three months you are not convinced, you cancel and that's it. We trust the product because we have been at this for 12 years and three quarters of our current clients have been with us for more than 3 years.

Frequently asked questions

Can I stick with the record in Excel if it works well?

Under the framework prior to 2025 it could serve, though with risk. Under the new regime it does not meet the requirements of real-time accessibility or guaranteed integrity. If the Inspectorate checks during a visit, at least a minor or serious infringement would apply.

What happens if an employee refuses to clock in?

The obligation to record the working day lies with the organisation, not the worker. If a worker refuses, the organisation has a disciplinary route for contractual non-compliance. In practice this does not happen: a well-designed clock-in involves no friction, and most initial resistance is resolved with a good explanation.

Can the Inspectorate come without warning?

Yes. The Labour Inspectorate is empowered to enter the workplace without prior notice, within working hours. It may request the working-time record on the spot. That is why it matters that the system allows fast access, so that the record does not have to be "prepared".

How much does time-tracking software cost for an SME?

It depends on the vendor and the model. HR suites (Factorial, Sesame) start from 5-6 euros per employee per month with minimum fees. Time-tracking specialists are usually between 1.50 and 3 euros per employee per month, with no minimum fee. At etempus we operate in the lower range with onboarding done by us at no additional cost.

How quickly can I have the system ready?

In a typical SME of 20-50 employees with a single site, between 3 and 5 working days from the first call. In larger organisations or with complex shifts, between one and three weeks. At etempus we handle onboarding ourselves: you provide the data and confirm the configuration.

What is the difference between etempus and a suite like Factorial?

Factorial is a complete HR suite: clock-in, payroll, onboarding, performance evaluation, employee portal with multiple modules. It is designed for organisations with an established HR department. etempus specialises in time tracking. If you need a full HR suite, Factorial fits. If you need to comply with the time-tracking law without paying for modules you will not use, etempus is a better fit.

What if I have several workplaces?

It is solved with multi-site: each site has its clock-in terminal (tablet or similar) and its manager, and from a single panel you see all sites. It is the standard approach for multi-shop retail, hospitality with several venues, or service organisations with a presence in several cities. At etempus we manage it from day one at no additional cost per site.

What if my collective agreement has odd particularities?

The system has to respect them. Hospitality has its specific breaks, retail its holidays and opening hours, transport its driving and rest times. A serious system allows custom collective agreements to be configured. When we onboard an organisation at etempus, configuring the collective agreement is part of the process: you pass it to us, we configure it, and we review it with you before the first close.

What happens to the vendor records if I switch in the future?

They must be exportable. A good vendor delivers the history in signed CSV when you decide to switch. What is verifiable is that the export works today: if the system does not let you download the full record of a worker or of a year, you have a vendor lock-in problem. At etempus the export is always available and unrestricted.

Do I need a Data Protection Impact Assessment (DPIA) under GDPR?

If you use PIN or personal card clock-in, no. If you use biometrics (fingerprint, facial), yes, and with caveats: in 2024 the AEPD ruled against organisations that used them without justifying why a less intrusive alternative was not enough. The practical recommendation is to avoid biometrics in employment clock-ins.

Is geolocation on mobile clock-in legal?

Yes, if it is proportionate. The worker's location can be collected at the moment of the clock-in to verify that they are at the assigned site. Continuous tracking throughout the whole working day is not allowed: the AEPD reads this as disproportionate monitoring and imposes penalties.

Can I try it before deciding?

At etempus, yes. We onboard your organisation with a minimum configuration so that you can see how it works with your real data, and you decide after the first monthly close. No setup fee. If you are not convinced, we don't continue and there has been no cost.

If you need to set up the digital time-tracking system this week, tell us how many employees you are and what you have in place today. We onboard your organisation, configure schedules and shifts, and close the first month together. No setup fee.

Book a call