Paper-based time tracking will be banned in 2026

The Spanish Government has taken a decisive step: Joaquín Pérez Rey, Secretary of State for Labour, has announced that paper-based time tracking will be banned in Spain in 2026. The Government will connect company time records with the Labour Inspectorate remotely and automatically before summer — putting an end to decades of labour fraud enabled by a manipulable manual system.

The announcement came during the press conference presenting the registered unemployment and Social Security affiliation figures for April 2026, where Pérez Rey was unequivocal about the current system and what needs to change.

«What is happening in Spain is an outrage»

The Secretary of State's words left no room for doubt about the Government's position on manual records:

"What is happening in Spain today is an outrage: under the guise of filling in a blank piece of paper — which can be manipulated as many times as needed — workers are condemned to unpaid labour and unbearable overtime." — Joaquín Pérez Rey, Secretary of State for Labour.

Pérez Rey added that overtime abuses are not just an economic problem, but also a health one: «Excessive working hours also kill, from the perspective of the Occupational Risk Prevention Act. We will show no complicity with those who break the rules».

The figures behind the urgency

Data from the Labour Inspectorate and the UGT trade union for 2025–2026 reveal the scale of the problem that paper has kept hidden:

Invisible overtime in Spain (2025)

• 331 million overtime hours were worked in 2025.
• 130 million hours (39%) were not paid.
• Workers lost out on €2.5 billion in wages.
• The fraud created a €775 million hole in Social Security contributions.
• 35% of SMEs and self-employed still use manual records.

Fines of up to €225,000

With the reform of the LISOS (Law on Infractions and Sanctions in the Social Order), companies that persist in using paper or manipulating records will face severe penalties. The Government has made it clear that the fine must not be cheaper than compliance:

Penalty regime for the new working time record

• Minor infraction — Formal errors or delays in documentation: up to €750.
• Serious infraction — No digital record or continued use of paper: €751 to €7,500 per affected employee.
• Very serious infraction — Falsifying data or unrecorded overtime: up to €225,018.

Remember that serious infractions are applied individually for each employee whose record is non-compliant, which can significantly multiply the total amount. You can calculate how much non-compliance could cost your business with our sanctions calculator.

Automatic connection with the Labour Inspectorate

The Government has confirmed that the connection of company records with the Labour Inspectorate will be remote and automatic before the end of summer 2026. This means inspectors will be able to access any company's records in real time without needing to visit the workplace in person.

This digitalisation aims to eliminate the four pillars of labour abuse identified by the Secretary of State: permanent availability that leads to burnout, the gender pay gap in fraudulent part-time contracts, legal insecurity for employees, and unfair competition between businesses.

"I want to believe that no ministry in a progressive government will put obstacles in the way of a regulation that delivers justice for working people." — Joaquín Pérez Rey.

Horalia: the affordable alternative to paper

If your business still uses paper or spreadsheets for time tracking, now is the time to change. Horalia is the workforce management platform built for SMEs and self-employed with staff — letting you comply with all regulations from day one, at a completely affordable price.

Why Horalia is the ideal solution

• Multi-device digital time tracking: mobile, browser, or physical terminal, in-person or remote.
• Tamper-proof records with modification log: every change is traced with user and reason.
• Real-time access for each employee to their own record.
• Automatic four-year data retention.
• Exportable reports for the Labour Inspectorate in seconds.
• Ready for automatic connection with the Labour Inspectorate.