Time tracking

Time Tracking: Obligation, Calculation and Digital Solutions

The time tracking is a central tool to accurately document employees' working hours and to protect both employers and employees from potential conflicts. Modern digital solutions facilitate this process and ensure compliance with legal regulations.

Why is time tracking important?

The accurate recording of actual working hours benefits all parties involved:

• Employers gain a clear overview of compliance with legal break and rest periods.

• Employees can ensure that their wages are calculated correctly and that overtime is properly recorded.

• Companies can plan more efficiently and avoid unnecessary additional costs through transparent time tracking.

Digital systems, such as Sundae OS, support the seamless integration of this process. Modern software solutions record working times in real-time, allow for a quick overview of attendance and absences, and automatically transfer the recorded data into monthly reports.

When did time tracking become mandatory?

Until May 2019, companies in Germany were only required to document overtime as well as work on Sundays and public holidays. However, with the ECJ ruling in 2019, it was established that working hours must be recorded in a reliable, objective, and accessible system. The Federal Labour Court (BAG) confirmed this obligation for all employers in 2022 and established key points for implementation:

• Recording of start, end, and duration of working hours as well as breaks and overtime.

• Delegation to employees is possible, but under the control of the employer.

• Digital or analogue recording systems that must meet certain criteria.

How is time tracking calculated?

The time tracking is based on the actual working hours performed, with breaks and rest periods not counting towards working time. Digital solutions offer automatic calculation of standard and actual hours and highlight any discrepancies.

Features of modern time tracking solutions

Digital systems offer numerous useful features to optimise time tracking. An example of a digital solution is Sundae OS, which offers the following functions:

• Digital time clock: Employees clock in and out via browser or tablet.

• Real-time overview: Managers have an overview of who is present or has already logged off.

• Automatic monthly reports: All recorded times are directly transferred to the system, so no manual recording is necessary.

• Correction requests: If working hours need to be adjusted retroactively, employees can submit correction requests, which will be approved by the manager.

Common Models for Time Tracking

Depending on the size of the company, industry, and level of digitalisation, there are various methods for time tracking:

• Stationary systems: Terminals with cards, chips, or fingerprint sensors.

• Time clock: A classic method that is increasingly being replaced by digital solutions.

• Manual recording: Employees record their working hours on time sheets.

• Digital systems: Modern software solutions offer fully automated, audit-proof recording.

Advantages of Digital Time Tracking

Digital time tracking solutions offer numerous advantages, such as:

• Efficient personnel management: Overtime is automatically detected, and overtime alerts warn of exceedances.

• Automated integration: Working hours are directly included in monthly reports, reducing duplication of work and errors.

• Simple absence management: Holiday and sick leave can be requested and approved digitally.

• Greater transparency: Employees can view their working hours at any time and request corrections if necessary.

Conclusion

The obligation for time tracking is now legally anchored in Germany. Companies should transition to digital solutions to reduce administrative burden and ensure legally compliant documentation. Solutions like Sundae OS provide a digital platform that not only simplifies time tracking but also makes overall personnel management more efficient.