How does time tracking work? – A comprehensive guide
Ever since the European Court of Justice's ruling on time recording, employers across Europe have been concerned with recording the working hours of their staff. But the options are diverse and the functions of digital time recording in particular raise many questions when you first start researching them. This comprehensive guide provides you with all the information you need at a glance to feel up to speed on time recording.Man in safety vest and safety helmet standing in front of construction site with mobile phone with clockin app in his hand
Disclaimer: All information on the pages of this website is for general information purposes only. It does not constitute legal advice in individual cases and cannot and should not replace such advice.
Time recording documents the working hours of employees. Working hours, breaks and absences are recorded and processed so that the working hours for each day are transparent.
The principle of time recording is not new. In the past, for Cell Phone Number Database example, mechanical time clocks were used for this purpose. Today, time recording is done using software that shortens manual processes. In addition to normal time recording, many digital solutions also offer order management. This allows the times for individual projects to be recorded.
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2. Why should employers record their employees’ working hours?
By managing working hours, employers meet their obligation to provide evidence. By compiling the working hours of their employees and assigning them to projects, they can measure the productivity of their teams. This can be a basis for optimizing resources, processes and structures in the company.
Correct accounting is the second goal of time recording. With the right documentation, employers can calculate their employees' salaries without errors and also take overtime into account. This can then be paid out separately or offset with vacation days. Without proof, employees cannot assert their right to compensation. A time recording system therefore ensures the necessary transparency for both sides.
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3. What does the law say about time recording?
In May 2019, the European Court of Justice ruled that time recording is mandatory . Previously, companies only had to document overtime.
Although time recording is generally mandatory, the ECJ leaves it up to each company to choose the system . The only important thing is that the recorded working hours are reliable and objective and visible to both employers and employees. This way, employees can enforce their employment rights in court in the event of a dispute.
“If the employer cannot demonstrate a time recording system that meets the requirements of the ECJ, there is a risk that he will have difficulty providing evidence in court.” (Claudia Knuth & Angelika Szalek, Haufe )
The new ruling argues strongly from the employee's perspective. Its aim is to limit maximum working hours, comply with daily and weekly rest periods and stop unpaid working hours. Overall, the aim is to ensure that the basic rights of employees are respected. As experts in the field of time recording, we do not offer legal advice, but we can still give you important tips for your time recording system.
4. Who is time tracking suitable for?
The law is clear: all EU member states must require their companies to record the working hours of their employees. The question is therefore which time recording system is suitable for which type of company. And that is very individual.
For many companies , a simple digital time clock is sufficient if only the comings and goings of employees are to be documented.
Project time recording is useful in agencies and craft businesses , as services are recorded for different customers and projects.
Project time tracking is also a good option for freelancers or solopreneurs . The automation can then create a proof of activity for individual orders.
When looking for a suitable solution, the company's requirements must be taken into account. Many small companies shy away from electronic time recording and look for cheaper manual options. Online time recording can help companies of all sizes to save time and money and ensure transparency in billing. The ECJ directive is not a burdensome regulation. It represents an opportunity for millions of companies to optimize their digital operations.
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