Choose between rest or overtime pay

Spain’s government has announced a reform to the national work‑hour registration system. The Ministry of Labour has released draft regulations that will require companies to digitally record start and finish times for employees, as well as breaks and overtime.

Every extra hour must state whether it is paid or compensated by rest days. This ensures clear records and increased transparency. The measure is intended to standardise tracking of time, protect the rights of workers, and reduce disputes. Reforms are applicable to all industries and sizes of companies.

Businesses must update or adopt digital solutions that capture work hours in real-time. The government has proposed a transitional period to give businesses time to adapt to the new rules before they are fully implemented. Although the draft has been made available for public consultation, exact implementation dates and final details have yet to be determined.

Digital Logging & Tracking Overtime

The Draft Decree on Mechanics

The draft decree The law requires that companies adhere to certain requirements. maintain precise digital records of employees’ working hours. Included are start and end times, breaks, overtime and whether work is done on-site, or remotely. The record must specify if each additional hour will be compensated monetary or by time off, to provide clarity for employees as well as auditors.

Labor inspectors will be able to access these digital records in order to monitor compliance. The aim is to avoid informal or unpaid overtime, and to give workers confidence that the hours they work are recognized and compensated formally according to legal standards. Experts say that accurate digital tracking will also improve employee scheduling, payroll accuracy and the internal management of hours.

Impact on Workers and Employers

Opportunities and Challenges

Employees gain from increased transparency about their work hours and overtime compensation. This measure clarifies if additional work is compensated financially or by resting, so employees can plan their time and know their rights.

Employers have to deal with operational challenges such as investing in software that tracks time, recording accurately multiple shifts and managing remote work schedules. To transition to digital, staff will need training and data security measures. They will also require consistent record-keeping. Once the decree has been formally implemented, failure to comply may result in fines.

Wider Implications

Strengthening Spain’s Labour Oversight

The reform This is part of a larger strategy to modernise Spain’s employment framework and align it with European employment directives. The authorities hope to improve workplace fairness and reduce informal working practices by standardising digital tracking.

Details such as the final implementation timelines and definitions of compensatory reste are still being finalised. Labour unions have stressed the importance of ensuring proper monitoring and enforcer to ensure that employee rights are protected.

Highlights

• Companies must digitally record all work hoursIncluded in this are overtime and breaks.
• Each additional hour must specify whether it will be paid or compensated through rest days.
• The digital records of the labour inspectors will be available to them to verify compliance.
• The exact date of implementation is still pending.

This reform will improve the work-life balance and increase transparency. It is also expected to reduce disputes over overtime pay. Employers will receive guidance on how to comply with labor standards, while employees benefit from a clearer record. This reform is part of Spain’s ongoing effort to modernise the labour laws while protecting workers rights and ensuring accurate reports across all workplaces.