Fines for Not Tracking Employee Hours: Updated Amounts and How to Avoid Them
Not recording your employees' working hours can cost you dearly. The Labor and Social Security Inspectorate has intensified time tracking control campaigns, and fines for non-compliance can reach €187,515 in the most serious cases.
In this article, we explain exactly what the amounts are, how infractions are classified, and what you can do to protect your company.
Legal framework: LISOS
Penalties for non-compliance with time tracking are regulated by the Law on Infractions and Sanctions in the Social Order (LISOS), approved by Royal Legislative Decree 5/2000. This law classifies labor infractions into three levels: minor, serious, and very serious.
Infraction classification
Minor infractions (Art. 6 LISOS)
Minor infractions include formal or documentary non-compliance:
- Having a register but with minor formal deficiencies
- Not adequately informing workers about the system
- Partial errors in documentation
Fines:
- Minimum grade: €60 - €150
- Medium grade: €151 - €375
- Maximum grade: €376 - €750
Serious infractions (Art. 7 LISOS)
Serious infractions include:
- Not maintaining the mandatory time tracking register
- Not recording overtime
- Maintaining the register incompletely or deficiently
- Not preserving records for the mandatory 4 years
Fines:
- Minimum grade: €626 - €1,500
- Medium grade: €1,501 - €3,750
- Maximum grade: €3,751 - €7,500
Very serious infractions (Art. 8 LISOS)
Very serious infractions include:
- Repeated non-compliance after prior notice from the Inspectorate
- Falsification of time tracking records
- Exceeding the overtime limit (80h/year) without recording
- Non-compliance affecting workers' fundamental rights
Fines:
- Minimum grade: €7,501 - €30,000
- Medium grade: €30,001 - €120,005
- Maximum grade: €120,006 - €187,515
How does the Inspectorate determine the penalty grade?
Within each infraction level, the Inspectorate determines the grade (minimum, medium, or maximum) considering:
- Number of affected workers
- Negligence or intentionality of the employer
- Harm caused to workers
- Company turnover
- Repeat offenses
How to protect yourself
The best protection is prevention. Follow these steps:
- Implement a digital tracking system that is reliable, tamper-proof and traceable
- Ensure ALL employees clock in daily, including remote and flexible workers
- Keep records for at least 4 years
- Allow workers to access their own records
- Inform worker representatives about the implemented system
- Record overtime separately
A time tracking software like RegulaKit automates all of this and guarantees regulatory compliance from day one.
How much could it cost you? Calculate it
We've created a free calculator that estimates the fine range based on your company's number of employees and current situation. It's indicative, but it will give you a clear picture of the financial risk.
Conclusion
Fines for not recording working hours are real and increasingly frequent. The Labor Inspectorate has made time tracking one of its action priorities, and the cost of non-compliance is significantly higher than implementing a proper tracking system.
Don't wait for a requirement. The cost of digital time tracking software is a fraction of any fine amount.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. The information may not be complete, accurate or up to date. For specific legal matters related to your company, always consult a qualified labor law professional or your employment advisor.