The Legal Imperative: Understanding Portugal's Time Tracking Laws
Recording employee working hours is a legal requirement in Portugal under Article 202 of the Portuguese Labour Code. This mandate applies to all companies and covers employees with fixed schedules, flexible hours, rotating shifts, and even remote workers. It's crucial for businesses to understand that non-compliance can lead to significant fines, ranging from €510 for small companies up to €44,890 for larger corporations with serious violations. These penalties highlight the importance of maintaining accurate and reliable time records.
For a time tracking system to be considered compliant, it must produce reliable and accessible records. This means the data should not be manually alterable without a change log, reflecting actual hours worked. Employers are required to store these records for a minimum of five years to ensure they are available for consultation by the Labour Authority (ACT) or the employee if needed.