
Time tracking is an essential element to ensure transparency in labor relations and compliance with employee rights. Besides being a legal requirement, it allows companies to better manage working hours and optimize human resources.
In this article, we discuss Portuguese legislation on the subject and how companies can ensure compliance, avoiding penalties and promoting a more productive work environment.
Definition of Working Time
Working time refers to the period during which an employee is at the employer’s disposal to perform their professional duties. This definition includes not only the time actively dedicated to work tasks but also waiting or availability periods whenever the employee cannot freely use their time. Additionally, mandatory breaks and rest periods are part of this management, ensuring compliance with rest and well-being regulations.
The Obligation of Time Tracking
Labor law requires companies to maintain an accurate record of their employees’ working hours. This record must include clock-in and clock-out times, as well as break and interval periods. The purpose of this requirement is to ensure transparent monitoring of working hours and prevent abuses or irregularities. To guarantee traceability and compliance, records must always be available for consultation and preserved for at least five years.
Work time control is also crucial for managing overtime hours. Companies must properly document additional work hours to ensure appropriate compensation and compliance with maximum permitted limits.
Breaks and Pauses Management
In addition to recording clock-in and clock-out times, it is necessary to ensure that breaks and pauses are properly logged. Compliance with these breaks is essential for employees’ health and productivity and to prevent workload overload. Failure to comply with these rules may result in penalties for the company and negatively impact on employees’ well-being.
Absenteeism Control
Workplace absenteeism can significantly impact a company’s productivity. An effective time tracking system also allows precise monitoring of absenteeism, identifying patterns of unjustified or recurrent absences. With adequate control, companies can implement strategies to reduce absenteeism, such as work-life balance measures, wellness programs, and better workforce planning. Properly recording absences also facilitates informed decision-making and compliance with corporate policies.
Employees with Flexible Schedules or Mobility
Employees with flexible work schedules or those working remotely must also maintain a record of their working hours. Even though they have flexibility in managing their time, they remain subject to maximum workload limits and the right to rest. For these cases, maintaining an updated record is essential to ensure legal compliance and avoid potential penalties.

Benefits of Legal Compliance
- Greater transparency and trust between employer and employee.
- Better control of productivity and operational efficiency.
- Reduction of legal and financial risks resulting from non-compliance.
- Promotion of a healthier and more balanced work environment.
Preparation for Inspections
Labor inspections in Portugal are a reality for companies, making it essential to have up-to-date and legally compliant time tracking records. In case of an inspection, missing or irregular records can result in fines and sanctions, depending on the severity of the violation. The Autoridade para as Condições do Trabalho (ACT) is responsible for ensuring compliance with labor regulations in Portugal. Implementing an effective time tracking system is, therefore, a crucial measure to avoid future problems and guarantee legal compliance.

How Can PGPlanning and PGTime Help?
PGPlanning (www.pgplanning.es) is a comprehensive workforce management solution that enables companies to have full control over their operations. As part of this platform, the PGTime module (www.pgtime.es) provides an integrated time tracking system, ensuring legal compliance and simplifying work time management.
PGTime can be used as part of the PGPlanning global solution or as a stand-alone time tracking system. Its key features include:
- Electronic time tracking.
- On-site and mobile clock-in options.
- Detailed reports for audits and inspections.
With PGPlanning and the PGTime module, companies ensure transparent, efficient, and fully compliant time management.
Conclusion
Time tracking is not only a legal requirement but also a crucial tool for optimizing work time management and fostering a more balanced and efficient work environment. Companies that adopt PGTime as their time tracking system ensure legal compliance and avoid unnecessary risks while increasing team transparency and productivity.
If you want to ensure compliance with labor laws and simplify time management in your company, explore the solutions offered by PGPlanning and PGTime.
Don’t let time tracking be a problem—turn it into a competitive advantage!

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