Whether online, via a time clock, in an Excel spreadsheet, or not at all—every company handles time tracking differently, as there has been little clarity in Germany regarding time tracking in the workplace until now. Until now, there has been no law requiring German companies to document their employees’ exact working hours. That is now officially changing: the Federal Labor Court has ruled that, starting in October 2022, companies in Germany will be required to track their employees’ working hours.
But tracking your work hours isn't difficult, and there are plenty of digital alternatives to paper-based systems.
We've compiled everything you need to know about time tracking and explain why a software-based time tracking system is better for both employers and employees.
Time tracking at the EU level: How it all began
Every EU country has national laws that regulate the labor market and working conditions. As a result, decisions made at the EU level can have an impact on national laws. This is currently the case with regard to time tracking. As early as 2019 , the European Court of Justice (ECJ) that employers are now required to systematically document their employees’ working hours. The ECJ’s ruling also stipulated that EU member states must implement this regulation into their labor laws—though without specifying a deadline. This issue ultimately came to a head when a Spanish trade union filed a lawsuit against Deutsche Bank in Spain. The lawsuit sought to make time tracking a legal requirement. However, Spanish labor law did not provide for such a law. Consequently, the ECJ’s ruling sparked a Europe-wide debate, as many EU member states had previously lacked any legal provisions regarding time tracking in their labor law systems.
In Germany, too, there was still uncertainty as to whether to act in accordance with the ECJ ruling or to continue as before. After all, there had not yet been any official amendment to German labor law.
The legal situation in Germany
In September 2020, the Federal Labor Court (BAG) finally ruled that employers must implement a system for tracking working hours.
In this regard, the court refers to Section 3 of the Occupational Safety and Health Act (Section 3(2)(1) ArbSchG). This obligates the employer to “take the necessary occupational safety and health measures, taking into account the circumstances that affect the safety and health of employees at work.” Thus, it is now officially clear that German companies are obligated to document their employees’ working hours. However, the German government has not defined how companies are to implement this.
Why is time tracking important?
Especially during the pandemic, when many workers had to switch from the office to working from home, more flexible work schedules and breaks are important. After all, working from home is no longer just a dream but has become the norm. When the kids are running around the house, it can be a real challenge to stick to fixed work hours. That’s why some people simply find it difficult to keep track of their hours when work and leisure suddenly blur together. In addition, careful time tracking simplifies both payroll and accounting and provides transparency regarding the hours worked by the workforce. Administrative overhead is minimized, and the HR department can focus on other important tasks. Furthermore, in addition to regular time tracking, project time tracking is becoming increasingly important in many companies. With such a feature, individual projects or project-related work hours can also be tracked—closely integrated with regular time tracking. Learn more here more about Microsoft’s project management tool.
What options are available for time tracking?
Below, we Solution a software-based Solution that enables time tracking. Of course, you could also record your hours manually, but we recommend a more accurate and transparent approach. We’ll explain why this is so important and Solution a specific Microsoft Solution .
Digital Time tracking – with HR Management for Microsoft Dynamics 365
HR Management for Microsoft Dynamics 365 offers more than just a digital time tracking system – itit is a complete solution for the entire HR department. From time management, recruiting, and managing vacation and absences all the way to retirement – HR Management for Microsoft Dynamics 365 automates and digitizes all HR processes on a single platform. Whether in Outlook, in a browser, or on the go with all common devices, you can work with it from anywhere. This eliminates data silos, as all data is recorded just once in a single system.
However, the following section covers the module Time Management is the focus. It offers all the functions needed to record and evaluate employee attendance and work performance, as well as to process this data further. Since every company, every employee, and every situation is different, different time-recording options are required accordingly. In this Solution , employees Solution six different options for time recording.
Time Management & Policies in the Workplace
Ffor compliance with occupational safety regulations and Regulations ensure compliance with occupational safetyand working conditions, including breaks and fair working hours. Supervisors and the HR department have a real-time overview of current attendance and can analyze all data and make corrections as needed.
Any type of working time can be tracked in various time accounts, which can be configured in detail. This makes it easy to process overtime, night shifts, and so on. In this context, it is does not matter which country- or industry-specific standards must be observed. The Solution also be optimally adapted to the company’s requirements and preferences. Consequently, time accounts make the management of working hours, overtime, and extra hours even more flexible and enable the HR department to view even more detailed analyses of their employees’ working hours. Furthermore, time accounts can be customized individually for each employee in their employment contract.
Standard integrations with popular ERP systems and the Dynamics 365 Project Operations module are also available out of the box. Additionally, time tracking can be integrated into Microsoft Teams, which many companies already use and with which most employees are already familiar. This is a very practical addition and makes it easier for both managers and employees to record and track working hours and absences.
Here are the key features of time management at a glance:
- Comprehensive solution for time tracking and production data collection (PDC)
- Integrated time management functions
- Mandatory break policies
- Rules for time entries, including maximum working hours
- Time accounts and overtime
- Current employee attendance at a glance
- Daily, weekly, monthly, and yearly overviews
- Transferring time data to payroll
- Automatic check-out, including notification to the supervisor
- Real-time dashboards and reports, as well as export to Excel
- Integration with Teams Shift for easy shift scheduling
Conclusion – Why should you choose a software-based time tracking system?
Tablets, smartphones, social networks, cloud computing—technological progress and digitalization are enabling companies to explore new avenues. Time tracking is also undergoing a transformation as a result of digitalization. Internet-enabled devices and cloud computing make it possible to work from anywhere in the world, while rigid working hours are becoming increasingly rare. Manual recording of working hours is becoming less and less common, and with it, the administrative burden on HR and employees.
Nowadays, there is a suitable method for tracking and managing work hours for every business model. Since every company operates differently these days, there is a corresponding need for independent and flexible time tracking. VGrowth-oriented companies, in particular, need technologies that are modular and scalable, such as Microsoft technologies, which are known for their high scalability.
However, especially when working from home means that your workplace is also your home, it’s easy to lose track of the hours you’ve worked and the hours you still need to work.
HR Management for Microsoft Dynamics 365 provides a clear overview and ensures compliance with agreed-upon working hours. If you’re already using Microsoft Teams, the transition is even easier, and you can log in using just your Windows password.
All in all, careful and systematic time tracking provides companies with greater transparency, security, and a more comprehensive and accurate overview. Time tracking is important for both employers and employees: it allows employers to better assess their resources, while ensuring that employees’ hours worked are no longer lost.
