New time tracking for SMEs: to be approved before 31 July 2026

The countdown for the new digital time-tracking rules is entering its final stage. Spain's Minister of Labour, Yolanda Díaz, has confirmed that the working-time record regulation is practically ready and that the Government plans to approve it before 31 July 2026, keeping the commitment made to the trade unions ahead of the summer break.

If the Council of Ministers gives the green light in the coming days, thousands of self-employed employers and small businesses will have to review their current clocking systems to comply with the new obligations around digital records, remote access for the Labour Inspectorate and full traceability of working time.

Díaz wants to approve the new rules imminently

After several months of delays and a critical opinion from the Council of State, the Ministry of Labour is in the home stretch of the royal decree that will govern the working-time record for all companies and self-employed workers with staff. Díaz has stated that the rule is in its final phase of negotiation within the Government.

“The regulation is practically ready, and my intention is for it to see the light of day before 31 July.”

Pressure has grown in recent weeks: the CCOO and UGT unions have warned that they will stop negotiating new agreements with the Government if the digital time-tracking rules are not approved before the summer. The minister has also justified the urgency by the high volume of overtime that, according to the Ministry, still goes unreported each year.

How long will SMEs have to adapt?

One of the big unknowns is how much time companies will have to adapt once the royal decree is published in the Official State Gazette (BOE). Early versions of the reform included a six-month transition period, but the matter is still open:

The debate over deadlines

• The Ministry of Economy argues for extending the deadline to one year for SMEs, given the financial and organisational cost of replacing paper systems or non-compliant apps.
• The latest official draft of the royal decree no longer includes any specific transition period: it only states that the regulation will take effect 20 days after publication in the BOE.
• The final text is not yet closed and the Government could add a last-minute transition period to help small businesses adapt.

New obligations for SMEs and the self-employed

Although the final content will depend on the approved text, the latest known draft lets us anticipate the main obligations that companies with staff will take on:

What the new digital time-tracking rules will require

• Daily records by digital means that are objective, reliable and accessible: many traditional paper clocking systems will disappear.
• Each worker must personally record the start and end of their working day, as well as breaks that do not count as effective working time.
• Full traceability: any change to a record must show who made it, when, and what was changed.
• An internal protocol for organising and running the time record, plus information and training for the whole workforce.
• Data retention for four years.
• Immediate access for workers and their representatives to their records.
• Remote access at any time for the Labour Inspectorate to the working-time record.

This last point — remote access for the Inspectorate — is one of the biggest concerns for companies, as it will make it easier to detect working days longer than declared or unrecorded overtime. You can dig into the detail of the rules in our guide to time-tracking software for legal compliance.

Who is most affected? Hospitality, retail, transport and services

The new regulation will especially push small businesses in sectors such as hospitality, retail, transport and services to review their time-tracking systems and consider digital solutions capable of meeting all the technical requirements. These are sectors with rotating shifts, part-time staff and high seasonality, where keeping records on paper or in a spreadsheet becomes unworkable.

How to get ready before 31 July

The window is tight and it's best not to wait until the last minute. These are the priority steps:

Checklist to make it in time

• Audit your current system: is it digital, tamper-proof and accessible remotely?
• Replace paper and spreadsheets with a valid digital clocking system.
• Make sure remote workers also clock in correctly.
• Guarantee each worker access to their own record and four-year retention.
• Prepare the internal protocol and inform your workforce.

Horalia: comply with the new time-tracking rules from day one

The good news is that adapting doesn't have to be expensive or complicated. Horalia is a workforce management platform designed for SMEs and self-employed professionals with staff that already meets all the requirements set out in the new regulation. You won't need to switch tools when the rule takes effect: with Horalia, you're already compliant.

Why Horalia complies with the new regulation

• Multi-device digital clocking: mobile, browser or physical terminal, on-site or remote.
• Tamper-proof records with a modification log: every change is traced with user, date and reason.
• Real-time access for each worker to their own record, with automatic four-year retention.
• Reports exportable for the Labour Inspectorate in seconds.
• Integrated management of leave and holidays, shifts and employment documents.

Want to know how much a penalty could cost your company if you don't comply with the time-tracking rules? Use our penalty calculator and get an estimate in seconds. And if you'd like to see it in action, try Horalia for free.