EU time tracking ruling: what it means for employees and employers

EU FlagThe Court of Justice of the European Union (ECJ) ruled last month that the member countries must establish detailed methods of tracking the hourly work of employees, so that they can be properly compensated for time worked.

The ruling stems from a lawsuit by the Federación de Servicios de Comisiones Obreras (CCOO), a Spanish trade union, against the Spanish subsidiary of Deutsche Bank. The main issues in question related to calculating overtime hours – 54% of which goes unrecorded in Spain – and protecting obligatory rest.  “Member States must require employers to set up an objective, reliable and accessible system enabling the duration of time worked each day by each worker to be measured,” the court said in its ruling.

The ECJ ruling is explicitly intended to protect the worker against potential workplace abuses. It is an effort to enforce the European Working Time Directive, which restricts employers from making employees work more than 48 hours a week, and grants people at least 11 consecutive hours of rest every day.

What the ECJ ruling means

The ECJ ruling extends to all companies operating in the EU. The ruling does not specify any guidelines for how employers should record work hours for their employees. In most cases, companies will need a clock-in/clock-out system that would allow them to monitor when employees start and end work, and when people have breaks. Employers will need to know employees’ exact work hours.

At first sight, this may seem cumbersome and backward. But given the technology available today, this could actually be a good idea, for both employers and employees. The “punch clock” has evolved, and businesses and employees don’t have to sacrifice contemporary technical flexibility for exact timekeeping. Modern time and attendance tracking software, often on the cloud, work on mobile phones. Clocking in and out is a matter of a tap on your smartphone screen or on a web page. So even if you are checking emails at home or taking a call from your boss, tracking that time isn’t really an inconvenience. Many of the software systems are priced such that small businesses can afford them. And most provide great analytical tools.

For employees

From an employee standpoint, there’s definitely a lot to be excited about.

Mobile and web time tracking
Mobile and web time tracking

Accurate time tracking provides irrefutable, objective proof against unlawful overtime. Time tracking thus becomes a tool towards building fairer, more accountable workplaces that help protect employee safety and health.

Moving beyond just clocking in and out, good time tracking can detail the time that employees spend on different tasks, when they take breaks and how long they last. It can help document off-site and off-hours work, as well as work-related travel, all of which are frequently overlooked. Basically, it gives employees full visibility into their work schedules – allowing them to address unhealthy workloads and the associated stress, anxiety and exhaustion that come with it.

For employers

Analyze employee time
Time Tracking reports

Companies can use time tracking to track employee working hours. It makes payroll much more accurate. Billing customers for work done is now much clearer and transparent and all hours worked can now be billed. The time tracking data collected is a great source of information on project budgets, project status, progress of works, employee productivity and many other aspects that are crucial for business success. For managers, it may make sense to combine data on the quantity and task breakdown of hours worked by employees with productivity information. It may turn out, for example, that a company would be better off with more workers keeping shorter hours than with an overworked team that’s less effective because of stress and exhaustion.

Conclusion

Time tracking doesn’t have to be tedious and cumbersome. With the right approach, you can make it an integral part of your business. Most makers of time tracking software tell customers that it’s vital to make it’s use mandatory to get people into the habit of tracking time, and that the data must be checked regularly to weed out abuses and negligence. If EU companies take the ECJ’s ruling seriously and apply it properly, it could do a world of good to their employees and their economies.

 

5 reasons to go green with mobile time tracking

Eliminating paper time sheets, physical time reports to your payroll agency / department, physical paychecks and paper pay stubs are huge steps towards a green organization. In fact, most studies reveal that employees prefer receiving their checks and payroll stubs electronically.

Done right, implementing an end-to-end green path from time tracking to payroll deposits is a win-win for everyone. Let’s start with just the time tracking side of the process.

The endless paper trail

The endless paper trail
The endless paper trail

Have you looked closely around your office lately? How much of that paper lying around is for paper time sheets and paper Paid Time Off (PTO) requests? Chances are that it’s quite a lot. And have you ever looked through some of those time cards and thought that it looked worse than your doctor’s squiggles? And have you had your payroll supervisor complain on payroll day that they don’t have all the paper time sheets back from employees? You could suggest using hours from memory, but you could end up over or under paying employees, which isn’t good for anyone. So what do you do?

Sustainable time tracking

If you are stuck in that frustrating cycle, then making the move to a mobile / web based time tracking system can eliminate many of those frustrations. Think about how much you spend on buying paper every year. And how much more on filing, finding and searching for relevant documents. This is where a huge amount of time, energy and paper (and therefore money) is wasted, while increasing the amount of garbage that your company generates.

Mobile and web time tracking
Mobile and web time tracking

A simple mobile time tracking system helps reduce the headaches and wasted effort involved with paper time sheets. Here are some terrific benefits that you get with a mobile / web time tracking system:

  • Save employees and businesses time and effort with 100% accurate online time sheets
  • Decrease payroll errors with always available timesheet data
  • Eliminate time and effort in the PTO request and approval process
  • Reduce cost of paper supplies and waste generated
  • Eliminate rounding errors, buddy punching and illegible time cards.

Increase payroll and invoicing efficiency

Most certainly, you have a payroll budget. So how can you reduce the errors that

Analyze employee time
Time Tracking reports

inevitably creep in? How can you make the process as smooth as possible. Accurate time and PTO tracking is a major factor in eliminating payroll errors. You want to make sure that your employees are paid accurately for the time that they’ve worked, But you also want to make sure that you are not paying for time that was not worked. A mobile time tracking system ensures that all employee time is tracked accurately at the time that it was done and that all time tracking data is automatically synchronized in the cloud. So your payroll team and managers have access to the data immediately, right within your office, regardless of where your employees may be working.

With all data in a single centralized repository, you can easily export simple time tracking reports to your payroll system, ensuring that there is no dropped data or errors in data entry. And you can make sure that every minute is accounted for and billed, because you have all the time tracking data for your employees in the same repository.

And all this with no paper anywhere. From your employees mobile phone / webpage to your central repository to your invoicing and payroll systems. All electronically! And because it’s all in the cloud, you are not increasing the carbon footprint within your premises.

Going green makes perfect sense!

Image by iblushay from Pixabay
Go green now!

Sometimes making sustainable changes in your company is difficult. But signing up for a mobile and web time tracking solution on the cloud is easy and effective. The Mobile Time tracker is designed to make life easier for small and medium businesses while accurately tracking employee hours, wherever they may be working. And helping the environment at the same time.

Save time, save money and save the earth! Now that’s an easy decision, isn’t it?