Work hour management in companies: regulatory tightening and blockchain3 min read

The Ministry of Labor is seeking ways to tighten the responsibilities of companies regarding the hourly control of their employees, as part of a reform to reduce the workweek to 37.5 hours. It also aims to have greater control over actual hours worked and overtime, to prevent fraud in their payment.

Employees’ hourly records are a crucial obligation for all types of legal entities (companies and self-employed individuals). It consists of recording each employee’s working hours and how those hours are distributed throughout their workday. This daily record must reflect both the beginning and the end of the workday, as well as any overtime hours. This control is not only a tool to ensure compliance with the workday but also to prevent labor abuses and fraud.

It is precisely in this context of fraud prevention where blockchain technology emerges as an innovative solution to guarantee the integrity, traceability, accessibility, and reliability of these records. Let’s take a look at the current regulations and proposed modifications in this regard, as well as the role that blockchain technology (and specifically the evidence generation platform iBS from iCommunity) can play in this field.

Current regulation and proposed modifications

Article 34 of the Workers’ Statute establishes that companies must keep a daily record of their employees’ working hours, including the specific schedule for starting and finishing the workday. This record must be kept for four years and be available to employees and unions (availability requirement).

The current regulation has allowed companies to choose the method that best suits their needs to carry out this hourly control. They can use everything from sliding cards or signatures on paper to more advanced systems, such as online time-tracking software or fingerprint or QR code punching devices.

Although the current regulation does not contemplate a specific or predetermined modality for the record, it does specify the requirements to be met: the record system must be able to report reliably, unmodifiable, and unmanipulable afterward. Inherent characteristics of blockchain technology as we will see later.

Given the widespread abuses in practice, the Ministry of Labor is considering eliminating the possibility of paper or spreadsheet records, while also toughening penalties for companies that do not comply with these requirements. The objective is to prevent fraudulent practices, such as false timekeeping or post-registry manipulation.

iBS, the blockchain evidence generation platform from iCommunity

Blockchain technology, known for its ability to guarantee the integrity, traceability, accessibility, and immutability of records, is an effective technology for hourly employee control as required by the law. And not only does it help companies comply with labor regulations, but it also offers additional benefits such as process simplification, data security improvement, and operating cost reduction.

iBS offers HR and time management solutions the possibility of integrating this technology very easily and quickly. Thanks to iBS, these solutions can implement a reliable record system not only for hourly control, but for all employee activities (entries, exits, absences, permissions, training, etc.), even for teleworking employees. By linking each piece of evidence to a verified identity and guaranteeing the security and privacy of the information, iBS ensures the reliability and validity of time records, becoming a perfect complement for these solutions to help their clients comply with the law.

And not only that, since with iBS, traceability and evidence generation can be extended to other HR processes, such as document management and validation flows (PPE delivery, reading GDPR rules, safety training, expense reports, requests, etc.).

Do you want your HR and time management software to improve compliance with the law and future modifications?

Contact us and we will help you implement blockchain in your hourly record!

2024-03-27T11:28:04+01:004 de March de 2024|Blockchain use cases, Human resources, iCommunity products, Legal|
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