Time Clock Records Are Mandatory in Portugal (2026)

You run an SME with 15 people and you have never worried much about time clock records. After all, everyone roughly knows what time they start and finish. Until the day the ACT knocks on the door and asks to see the last 5 years of records.

That is the moment you discover that recording working time is a legal requirement. And that not having those records is a serious administrative offence, with fines that can run into thousands of euros.

This article explains exactly what the law says, who it applies to, what you have to record, and how long you have to keep the data.

What Article 202 of the Labour Code Says

Article 202 of the Portuguese Labour Code (Law 7/2009) is clear. The employer must keep a record of working time in an accessible place and in a form that allows it to be consulted immediately.

It is not a recommendation. It is a legal obligation.

The record must include the start and end times of working time, along with interruptions and breaks, in a way that allows the number of hours worked per worker, per day and per week to be established.

And here is the detail many people miss: this applies to all workers, including those exempt from fixed working hours.

What You Have to Record

At a minimum, the working time record must include:

Each worker’s start time, finish time, rest breaks (such as the lunch break), and any interruption that is not part of effective working time.

The purpose is simple: to be able to calculate exactly how many hours each person worked per day and per week. This matters particularly for establishing overtime, which must be paid with the statutory uplift.

How Long You Have to Keep the Records

Five years. Article 202(4) requires the employer to keep working time records for five years.

That means that if the ACT turns up tomorrow, you have to be able to show records for every worker going back to 2021.

If you do not have those records, or if they are incomplete, you are non-compliant.

The Fines for Non-Compliance

Breaching Article 202 is a serious administrative offence. Fines are calculated in Units of Account (UC), which in 2026 is set at €102.

For an SME with turnover below €500,000, the fines for having no time clock records are:

For negligence: between €612 and €1,224 (6 to 12 UC). For intent, meaning deliberate non-compliance: between €1,326 and €2,652 (13 to 26 UC).

For larger companies, the amounts rise. A company with turnover above €10 million can face fines of up to €9,690 where intent is established.

And note: these fines can be applied per affected worker. If you have 20 people without adequate records, multiply accordingly.

Remote Work Is Included Too

If you have employees working remotely, time clock records remain mandatory. The law draws no distinction between on-site and remote work.

Article 202(3) provides that, for workers performing work away from the company’s premises, the record must be available within 15 days of the work being performed.

In practice, that means you need a way for remote workers to record their hours, whether through an app, a web platform, or another digital method.

Paper or Digital: What Is Accepted

The law does not require a specific system. You can use paper, Excel, or dedicated software. What matters is that the record is:

Accessible for immediate consultation, complete with the required information, reliable and auditable, and retained for 5 years.

That said, the ACT increasingly recommends digital methods that guarantee traceability and data integrity. An Excel file can be altered without leaving a trace. A digital time clock system with timestamps and logs cannot.

Workers Exempt from Fixed Hours

Some people think workers with an exemption from fixed working hours do not need to clock in. Wrong.

Article 202 is explicit: the employer must keep working time records, including for workers who are exempt from fixed working hours.

The exemption means the worker is not subject to the maximum limits of the normal working period. It does not mean there is no obligation to record when they work.

What Happens During an ACT Inspection

When an ACT inspector visits your company, they can ask to see the time clock records immediately. You cannot say you will email them later.

The inspector will check whether the records exist, whether they are complete, whether they cover the last 5 years, whether they are kept in an accessible place, and whether they allow hours worked per day and per week to be established.

If there are irregularities, an administrative offence report is issued. After that you have an opportunity to respond, but the process is already under way.

How to Make Sure You Are Compliant

The first step is an internal audit. Do you have records for every worker? Are they complete? Do they cover the last 5 years?

If the answer to any of those questions is no, you have work to do.

For small companies, a simple system may be enough. A well-structured spreadsheet, updated daily, backed up regularly.

For larger companies or those with remote teams, time clock software makes more sense. It removes human error, makes audits easier, and generates reports automatically.

Summary: What You Need to Know

Recording working time is mandatory for every company in Portugal, regardless of size or sector.

You have to record start times, finish times, and breaks for all workers, including those exempt from fixed hours and those working remotely.

Records must be kept for 5 years and be available for immediate consultation.

Non-compliance is a serious administrative offence with fines starting at €612 and potentially exceeding €9,000 for larger companies.

The ACT actively enforces this and can turn up without notice.

If you do not yet have a time clock system in place, now is the time to sort it out. Before an inspection sorts it out for you.

For a practical five-step implementation guide, comparing biometric terminals, software with geolocation and magnetic cards, see How to Implement a Digital Time Clock in Your SME (2026).