• The Government approved this week the fast-track processing of the new digital time tracking record. According to the Minister of Labor, this reform will consist of “five key changes” that will affect the self-employed and SMEs with employees

The Minister of Labor and Social Economy, Yolanda Díaz, is moving forward with her intention to impose a new digital time tracking record for all self-employed workers and small businesses with employees on their payroll. Following the setback two weeks ago in Congress, when the Lower House vetoed the working hours reduction project, attempts will now be made to increase control over businesses through other avenues.

As this newspaper already reported, given the impossibility of passing the working hours reduction and the reform of the time tracking record through parliamentary channels, the Minister of Labor opted to implement a new control mechanism over workers’ hours, which will now be digital and accessible in real time for inspectors, as well as for unions and employees.

The final details of the text, which is intended to be approved by Royal Decree and would not need the approval of Parliament this time, are still unknown. In fact, last Tuesday, the Council of Ministers agreed on the urgent processing of the draft Royal Decree on the tracking of working hours. With this fast-track route, the aim is to cut in half the timeframes planned for the definitive publication of the regulation, which could be in force before the end of 2025.

THE FIVE “KEY CHANGES” OF THE NEW DIGITAL TIME TRACKING RECORD THAT SMES SHOULD COMPLY WITH STARTING IN 2026

What’s more, right now and given that approval by Congress is not required, the Government would already have the final text ready, which will establish the new conditions that SMEs must meet regarding the time tracking record. According to what the Minister of Labor stated, this document would include several “key” changes that will make this mechanism digital for the first time, accessible in real time, and additionally applicable to any type of contract, among other updates.

Although the changes would not require parliamentary consensus, the Executive does not rule out that the CEOE business association might attempt to challenge this reform through judicial channels, which, pending the publication of the text, will force thousands of small businesses to invest in new digital systems and expose themselves to greater control by the Inspectorate.

Following the approval of the fast-track processing for the digital record, Díaz outlined the main points of the new regulation on working hours tracking. These would consist of five key changes that, according to the minister, aim to reinforce control over hours worked and guarantee a more objective system.

All types of working hours must be recorded. This includes ordinary, extraordinary, flexible, and complementary hours in part-time work. The goal is to check whether both legal working hour limits and minimum rest periods are respected.

RECORDS CANNOT BE MODIFIED WITHOUT CONSENT

Thirdly, the Executive proposes that records cannot be modified without the express consent of the employees. This measure is intended to prevent companies from unilaterally altering data.

IMMEDIATE ACCESS TO THE RECORD

The fourth point establishes that each worker will have immediate access to their own time tracking record, while union representatives will be able to consult the information for the entire workforce. In this way, the Ministry argues that transparency and collective monitoring against potential violations are reinforced.

REAL-TIME AND REMOTE SURVEILLANCE

Finally, the minister announced one of the most sensitive aspects for companies: the Labor Inspectorate will have remote and permanent access to the record. In this way, inspectors will be able to check at any time whether overtime hours are properly paid or compensated with rest. Otherwise, the Inspectorate may impose sanctions.

For the moment, however, since it has not been processed through parliamentary channels, the regulation does not include an increase in fines for failing to comply with the time tracking record, as this would require a reform of the Workers’ Statute. That measure was planned in the working hours reduction project, but it requires the approval of a law.

Source: AyE