- The Supreme Court holds that the Workers’ Statute requires overtime to be recorded, not the daily hours of the whole workforce.
- The ruling revises an earlier decision of the National High Court that had imposed a general record at the bank.
- Recording duties remain in other cases, such as part-time work, and collective agreements may go further.
On 23 March 2017 the Supreme Court handed down the ruling known as the Bankia case on recording working hours. It concluded that companies are not obliged to keep a daily record of the hours of all their workers: the Workers’ Statute only requires overtime to be recorded, unless another rule or agreement provides otherwise. The ruling corrects the approach the National High Court had previously followed.
The question is practical and affects almost any employer, because control of hours worked is tied to proof of working time, overtime and rest periods. A general record can protect both the company and the worker, but the ruling makes clear that, for now, it is not a legal obligation for the whole workforce. Companies that already keep time control are not obliged by the ruling to give it up; those that do not have one are told they are not breaking the law for that reason.
What the law says
Article 35.5 of the Workers’ Statute provides that, for the purpose of counting overtime, each worker’s hours are recorded day by day and totalled over the pay period, with a copy of the summary given to the worker with the pay slip. The Supreme Court reads that obligation as limited to overtime. Overtime must also be compensated with rest or paid, as agreed.
That reading has a consequence: if work stays within ordinary hours, the law does not impose daily recording. Overtime, which is voluntary unless agreed and capped at 80 hours a year, must be noted day by day and totalled each pay period. Failure to meet those duties may lead to penalties or evidentiary difficulties in a claim.
Where recording remains
The ruling does not abolish all records. For part-time work, the Statute requires hours to be recorded day by day and totalled monthly, with a copy given to the worker, and the summaries kept for four years. Broader obligations may also exist in a collective agreement, a company agreement or a sector rule, and in those cases recording remains mandatory.
In addition, many companies keep time-control systems for their own reasons: safety, service quality, shift management or evidence in a dispute. Not being legally obliged does not prevent doing it voluntarily, provided workers’ rights and data protection rules are respected.
What to review
Companies can first check how they record overtime and part-time work today, and whether those records are totalled and given to the worker as the law requires. Then review the applicable collective agreement, in case it imposes wider control, and assess whether a voluntary general record suits them as a management tool.
Those who employ people at home or run a small business can take the opportunity to put hours, rest periods and compensation in writing. Clear documentation is the best defence against a future disagreement, and it does not depend on the law demanding it. A simple record consistent with the collective agreement also makes it easier to prove rest periods and leave.
That the law does not require recording all hours does not prevent keeping working time in good order.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
