Registering employee working hours is more than just a good management practice — in Portugal, it is a legal requirement for all companies, regardless of size or industry. However, despite this obligation, many organizations still don’t know exactly what needs to be recorded, how to do it, or what the risks are if they fail to comply.
With recent changes — such as the rise of remote work, increased digital inspections, and the need to automate administrative tasks — this topic has gained new relevance. Managing schedules and attendance efficiently is no longer just a matter of legal compliance; it has become a competitive advantage.
This guide was created to answer all your questions about working time registration in Portugal in 2025. In the following sections, we explain what the law says, what needs to be tracked, the most commonly used methods, the risks of non-compliance, and the most effective solutions to keep your company compliant — without unnecessary complications.
If you manage people, this content is for you.
In this guide, you’ll find:
- What working time registration means in Portugal
- Is working time registration mandatory?
- Are there any exceptions to this requirement?
- What companies must record
- What a reliable and accessible record mean
- Risks of failing to comply with the law
- Common time tracking methods
- Trends to watch in 2025
- What makes a good digital solution
- Conclusion and next steps
- Frequently Asked Questions
Is Working Time Registration Mandatory in Portugal?
Yes, it is mandatory. Recording employee working hours is explicitly required under Article 202 of the Portuguese Labour Code, and it applies to most companies — regardless of their size, structure, or sector.
This article states that employers must maintain a reliable record of each employee’s working time in an accessible location. This obligation applies to employees with fixed schedules, flexible hours, rotating shifts, and even those working remotely.
The purpose is to ensure that working hours, breaks, overtime, days off, and other aspects of the workday are properly documented and available for inspection — at any time, especially during audits by the Portuguese Labour Authority (ACT).
Portuguese legislation in this area aligns with European Union guidelines, particularly the case law of the Court of Justice of the EU, which reinforces the need for objective and reliable records to verify compliance with rules on working time and rest periods. It’s important to note that the absence of records — or the presence of incomplete records — can be classified as a serious administrative offense, with legal and financial consequences for the company.
Even small companies must ensure they can provide valid and accessible records at any time — not only to meet legal obligations, but also to protect those in leadership roles.
Are There Any Exceptions?
There are specific cases where time tracking is not mandatory — such as employees who are exempt from fixed working hours, typically senior staff with full autonomy over their schedules. However, even in these cases, records may still be required if there is any form of partial or direct control over the work schedule.
For this reason, the general recommendation — including from legal advisors and occupational safety specialists — is that all companies maintain updated and accessible records of working hours, regardless of each employee’s work arrangement.
In summary: Yes, working time registration is a clear legal requirement in Portugal. More than that, it’s an effective way to protect the company, its managers, and employees, ensuring a transparent, fair, and legally compliant working relationship.
What Must Companies Record?
The simple act of “clocking in” is no longer enough to ensure legal compliance. Portuguese legislation requires a complete, reliable, and accessible record that covers all key aspects of employees’ working time.
More than just logging clock-ins and clock-outs, companies must be able to document the entire workday in a clear, auditable way — and be ready to present this information in the event of an inspection.
Below are the main elements that must be included in a legally valid working time record:
1. Start and End Times
It is mandatory to record the start and end of each work period daily. This record must be precise and dated. For schedules with programmed breaks (such as lunch), there should also be a record of exit and re-entry — or a justification included in the defined schedule.
2. Duration of Work Performed
The record must make it possible to verify how many effective hours were worked each day and each week. This means calculating (either automatically or manually) the total hours worked, with a clear indication of any deviations from the standard schedule.
3. Overtime
If overtime occurs, it must be recorded separately, with details including the date, duration, and ideally, the justification for the extra work. Overtime must also comply with legal limits set for additional working hours.
4. Breaks and Rest Periods
Whenever there are breaks within the workday, these periods must be clearly marked or accounted for — especially if they are deducted from working time (e.g., lunch breaks or mandatory rest periods).
5. Holidays, Absences, and Other Time Off (Justified or Unjustified)
The working time record must also include non-working days, with the reason stated: holidays, public holidays, sick leave, justified or unjustified absences, parental or medical leave, etc. This information must be easily accessible for reporting, audits, or payroll processing.
6. Shift Changes, Rotating or Flexible Schedules
If the employee is on a variable schedule (e.g., shift work or weekly rotations), the company must be able to link time entries to the assigned schedule for each day. This is essential to identify inconsistencies and calculate overtime accurately.
Having a system that records all of this automatically reduces the margin of error and increases the reliability of your data — which is crucial for payroll, audits, and decision-making.
What Does a “Reliable and Accessible” Record Mean?
To comply with the law, a working time record must be:
- Reliable: It must not be manually altered without a record of changes; it should reflect the employee’s actual working hours.
- Accessible: It must be available for consultation at any time by the Labour Authority (ACT) or the employee.
- Stored and preserved: It must be kept by the employer for at least 5 years, as required by law.
Legally required records go far beyond simply noting clock-in and clock-out times. Companies must ensure they have a system capable of recording, calculating, and justifying all elements of working time. The more automated and organized the system is, the greater the legal and operational security for the organization and organised this system is, the greater the legal and operational security.
What Are the Risks of Failing to Comply with This Legal Obligation?
Failing to keep accurate records of employees’ working time poses real risks to any company — legally, operationally, and reputationally. While many organizations delay formalizing this process due to time constraints or a lack of perceived urgency, ignoring this obligation can be costly in many ways.
Here are the main risks associated with the absence of a reliable and up-to-date time tracking system:
1. Fines and Sanctions from the Labour Authority (ACT)
ACT is legally empowered to inspect compliance with labor laws, including time tracking. If non-compliance is found, the company may be fined for a serious administrative offense — with fines increasing based on the number of employees and any previous violations.
Additionally, in cases of complaints or labor disputes, the absence of records may weigh heavily against the employer during legal evaluation.
2. Difficulty Defending the Company in Labor Disputes
Without a reliable record of working hours, the company lacks legal strength in disputes — for example, claims of unpaid overtime, violations of rest periods, or unfair management of time off.
In court, if there’s no objective and verifiable record, the employee’s word often prevails, especially when there are signs of employer negligence in fulfilling legal obligations.
3. Incorrect Payment of Wages or Overtime
Without a reliable time tracking system, payroll errors are common — including overpayments, missed workdays, or duplicated entries. These mistakes have a direct financial impact and may lead to internal tensions, loss of motivation, and strained workplace relationships.
Frequent payroll errors may also trigger inspections by Social Security or the Tax Authority (AT).
4. Lack of Control Over Productivity and Resource Planning
Time tracking isn’t just about legal compliance. It’s also a key tool for analyzing team productivity, managing shifts efficiently, and planning resources based on real data.
When this information is missing or disorganized, it becomes harder to make evidence-based decisions — and easier to waste time and budget.
5. Company Reputation Among Employees and Partners
Companies that show disorganization or lack of transparency in time management risk damaging their reputation — with employees, partners, and regulatory bodies.
In a market increasingly focused on compliance and management practices, having a reliable time tracking system is also a mark of professionalism.
The risks of non-compliance go far beyond fines. They represent legal vulnerabilities, operational inefficiencies, and potential harm to the company’s image. Prevention is cheaper than correction. And today, with affordable and easy-to-implement solutions available, there’s no reason to delay compliance.
Becoming compliant doesn’t require a large investment or complex processes. Today’s technology offers accessible, flexible solutions designed for the needs of any SME.
Most Common Time Tracking Methods: Pros and Cons
Companies in Portugal use a variety of methods to track employee working hours. From the traditional paper logbook to cloud-based digital solutions, each approach has its strengths and limitations.
This section provides a clear, comparative overview of the main methods so you can assess which one best fits your organization — or recognize when it might be time to upgrade.
1. Manual Paper Records (Logbook)
Advantages:
- Easy to implement
- Low initial cost
- Familiar to teams with low digital literacy
Disadvantages:
- Easily tampered with or lost
- Prone to errors and omissions
- Does not meet the ACT’s reliability and accessibility requirements
- Requires manual validation and transcription into other systems
- Difficult to audit or analyze later
Conclusion: Not suitable for environments with inspections, multiple shifts, or a need for reliable organization.
2. Excel Sheets or Homemade Systems
Advantages:
- Familiar and widely available
- Allows some level of customization
Disadvantages:
- Doesn’t guarantee data integrity (anyone can alter values)
- Lacks traceability (no automatic change history)
- Doesn’t handle breaks, leave, or shift changes in a structured way
- High risk of human error during data entry and hour calculation
- Difficult to ensure legal compliance or produce audit-ready reports
Conclusion:
Better than paper, but still far from offering legal security or operational efficiency.
3. Physical Time Clocks (Card, Code, or Biometrics)
Advantages:
- On-site control and more reliable than manual methods
- Automatically records clock-in and clock-out times
- Some models offer advanced features (biometrics, facial recognition)
Disadvantages:
- Requires investment in hardware and installation
- Limited flexibility for mobile teams or remote work
- Difficult to integrate with payroll or leave management software
- Devices can fail and require maintenance
- Often not cloud-connected, preventing real-time updates and remote access
Conclusion:
Suitable for companies with centralized operations and fixed teams, but limited in terms of flexibility and connectivity.
4. Cloud-Based Digital Platform (App or Web)
Advantages:
- Fully compliant with national and EU legislation
- Real-time remote access for both managers and employees
- Clock-ins with geolocation, facial recognition biometrics, or PIN + photo
- Automation of shifts, leave, absences, and reports
- Integration with payroll, accounting, or ERP software
- Scalable and adaptable to companies of any size or sector
- No need for technical installation or dedicated hardware
Disadvantage:
- Depends on internet access (although many solutions offer offline functionality with later synchronization)
Conclusion:
This is the safest, most flexible, and most efficient solution for companies seeking legal compliance, reduced bureaucracy, and real-time tracking across multiple work locations or models.
Comparative Summary:
While traditional methods may seem simpler, they often fail in critical areas: data security, traceability, and legal compliance. Cloud-based digital solutions meet the technical, legal, and operational criteria required of companies in 2025 — and greatly simplify workforce management.ce. Cloud-based digital tools meet 2025 standards and simplify HR management.
Trends for 2025: What Has Changed and What’s Still Evolving?
Time tracking is far from being just a legal formality. In 2025, it’s increasingly seen as a strategic management tool — a direct reflection of how companies value time, productivity, and transparency in employment relations.
The dynamics of the labor market have changed significantly in recent years, and time management practices have had to evolve as well.
Here are some key trends that are already shaping how Portuguese companies manage time tracking — and will continue to define the future.
1. Remote Work and Hybrid Models Are Here to Stay
The rise of full or partial remote work has forced companies to rethink how they manage attendance. Having a physical time clock at the office is no longer enough. It’s essential to ensure that all employees — no matter where they are — can track their time securely and legally.
Cloud-based solutions with mobile or desktop clock-in features have become essential — not just for convenience, but as a functional necessity.
2. Digital and Unpredictable Inspections
ACT (Labour Authority) is modernizing its inspection processes. It’s no longer just about physical visits and paper logbooks. Inspectors now increasingly request digital reports, with full change histories, traceability, and structured data exports.
Systems that can’t deliver this information quickly and reliably expose the company to real legal risk.
3. Increased Use of Apps with Geolocation and Digital ID
Attendance authentication methods are evolving. A simple “clock-in” button is no longer sufficient. Robust solutions combine:
- Geolocation (to verify where the clock-in occurred)
- Personal PIN + photo (to prevent false entries)
- Facial recognition or photo capture (for added visual validation)
- These features not only improve the system’s reliability but also encourage greater employee accountability.
4. Integration with Payroll, ERP, and Accounting Systems
Modern companies aim to automate internal workflows as much as possible. A key trend is the integration between automatic time tracking systems and payroll or ERP software.
This integration allows companies to:
- Reduce payroll errors
- Streamline monthly closing of hours and time off
- Improve administrative efficiency without duplicated tasks
5. Growing Focus on Employee Experience
Well-being, flexibility, and autonomy are increasingly valued. Having a transparent, intuitive system that respects employees’ time is seen as a key asset for company culture.
Unlike the rigid, punitive systems of the past, today’s tools aim to balance control with trust, adapting to each company’s working style. In 2025, time tracking is no longer just a legal requirement — it’s an opportunity for modernization, efficiency, and strengthening the relationship between company and employee. Businesses that embrace these changes gain agility, security, and competitive edge.
What Defines a Good Digital Time Tracking Solution?
Not all time tracking tools are created equal. With the growing number of digital options available, it’s important to know what to look for in a time and attendance platform that’s reliable, legally compliant, and tailored to your company’s reality.
Below are the essential criteria to consider before choosing a solution — whether it’s free, paid, local, or international.
1. Compliance with Portuguese Labor Law
The first and most important criterion is compliance with the national Labour Code, particularly Article 202. The solution must ensure that records are:
- Reliable
- Accessible
- Complete (including clock-ins, clock-outs, breaks, overtime, absences)
- Stored for the legally required retention period
Additionally, it should allow for quick data exports in formats accepted by ACT (PDF, Excel, CSV).
2. Ease of Use
A good platform should be intuitive — both for employees clocking in and for managers analyzing the data.
Avoid overly technical systems with steep learning curves. Quick adoption depends on a user-friendly interface and clearly defined features.
3. Multi-Platform Access
- The solution must work across multiple devices:
- Mobile (iOS, Android, and Huawei)
- Tablet (iOS, Android, Huawei — for fixed workstations)
- Web browser (for manager and admin access)
- Optionally, smartwatch or biometric terminal
This versatility allows the tool to adapt to remote, field-based, retail, or office teams.
4. Secure Authentication Features
To ensure that the person clocking in is the authorized employee, the platform should offer authentication options such as:
- Facial recognition biometrics
- Personal PIN + photo
- Automatic photo capture at clock-in
- Geolocation
- Access and change history
These features help prevent internal fraud (e.g., employees clocking in for each other).
5. Automated and Customizable Reports
The system should generate reports ready for use in payroll, overtime control, vacation tracking, internal audits, or ACT inspections. Ideally, it should allow you to:
- Group data by employee, team, or time period
- Export in multiple formats
- Schedule periodic report delivery
6. Integration with Management Software or ERP
A good solution shouldn’t operate in isolation. It must integrate with the systems your company already uses, including:
- Payroll software (PHC, Primavera, etc.)
- Human Resources Management
- ERP and accounting software
This integration reduces errors and eliminates repetitive administrative work.
7. Technical Support and Ongoing Updates
Post-sale support is often overlooked, but in case of questions or failures, access to an available and efficient support team (in Portuguese) is crucial.
The software should also be continuously updated to keep up with:
- Legal changes
- New features
- Security improvements
8. Fair and Scalable Pricing
The ideal solution allows you to start with an affordable plan and grow as your company expands.
Avoid tools with hidden fees, setup charges, or long-term contracts. Choose subscription models that are clear, transparent, and adjusted to the number of active users.
Example of a Solution That Meets These Criteria:
CucoCloud is a Portuguese platform that meets all the above points:
- Legally compliant and updated with the Portuguese Labour Code
- Intuitive, with apps for various devices
- Authentication via facial recognition biometrics, PIN + photo, geolocation, and timestamped photo capture
- Automated, exportable reports
- Integration with Portuguese software
- Pricing from €0.50 per user, no installation needed
- Technical support in Portuguese
A good digital time tracking solution should be more than just a tool for clocking in.
It must be a complete, reliable, flexible, and legally sound system that brings peace of mind to management and simplifies the process for everyone involved.
Conclusion: How to Simplify Time Management in Your Company
Time tracking is no longer just a bureaucratic task or optional process. In 2025, it is a legal obligation, a management responsibility, and increasingly, an opportunity to improve internal processes, reinforce transparency, and save time.
If you’ve made it this far, you already know: complying with the law is just the beginning. With the right tools, time tracking stops being a risk and becomes a competitive advantage.
Throughout this guide, we’ve seen that:
- Portuguese law requires a reliable and accessible record of working hours;
- Lack of records can result in fines, legal disputes, and operational losses;
- Manual methods, while common, do not ensure compliance or reliability;
- Digitalization brings clear advantages: accuracy, mobility, automatic reports, and integration with your company’s systems;
- Choosing the right platform is what turns this obligation into a simple and effective process.
For companies with mobile teams, rotating schedules, multiple locations, or hybrid models, relying on outdated methods is no longer safe — or practical.
The good news? Today, it’s possible to ensure compliance, automate processes, and improve workforce management with a digital system that’s accessible and easy to implement.
If your company still doesn’t have a digital solution for time tracking, now is the ideal time to make the switch. Not out of obligation — but for efficiency.
Adopting a digital system may be the simplest and most secure decision you’ll make this year. CucoCloud is a Portuguese, intuitive, and affordable solution designed to ensure legal compliance and make life easier for people managers. The hardest part is continuing to manage in the dark.
Still Have Questions About Time Tracking?
We understand this topic raises a lot of questions — especially when it comes to legal compliance and reducing business risks. That’s why we’ve gathered the most frequently asked questions from our clients about time tracking in Portugal. If you still have doubts, this is the place to get clear and direct answers.
1. What is working time registration in Portugal?
It’s the legal requirement to document employees’ clock-ins, clock-outs, breaks, and overtime, as stated in Article 202 of the Labour Code.
2. Is working time registration mandatory for all companies?
Yes. Regardless of size or industry, all companies in Portugal must maintain a reliable and accessible record of working time.
3. Who is exempt from working time tracking?
Only employees who are exempt from fixed schedules (e.g., senior staff with full autonomy). Still, it’s recommended to maintain records, especially if there’s any partial control over their working time.
4. How can I ensure legal compliance in time tracking?
By using a digital solution that offers traceability, secure validation, safe data storage, and export formats accepted by the ACT.
5. What are the risks of non-compliance?
Fines, labor disputes, payroll errors, and damage to the company’s reputation.
6. How long must time records be kept?
At least 5 years, as required by Portuguese labor law.
7. Are Excel sheets or paper logbooks enough?
No. These methods lack reliability, traceability, and accessibility. They may be considered invalid during inspections.
8. How does a digital time tracking solution work?
Employees clock in via an app or computer. Data is stored in the cloud with history logs, automatic reports, and validations like PIN or geolocation.
9. What should a legal time record include?
Clock-ins and clock-outs, breaks, overtime, absences (justified or not), vacation, shift changes, and rotating schedules.
10. What’s the best way to modernize attendance tracking?
Adopt a digital platform like CucoCloud, which meets legal requirements and reduces administrative errors with automation and ready-to-use reports.
Ready to Simplify Time Tracking in Your Company?
Legal compliance is just the first step. With the right solution, time tracking becomes an efficient, reliable management tool — fully prepared for today’s demands, with no paperwork, no errors, and no hassle.
Try CucoCloud free for 15 days and see how easy it is to digitize time tracking, ensure compliance, and free up time for what truly matters.
