The precise recording of working hours is a decisive factor for efficiency and fairness in every company. In view of the increasing complexity of the world of work and advancing digitalisation, modern solutions for recording working time are essential. In this article, we shed light on the current legal situation, the many benefits of accurate time recording and clarify the difference between working time and project time recording.
Table of contents - What you can expect:
How does working time recording work?
Is working time recording compulsory?
How do you record your working time?
How does working time recording differ from project time recording?
How to Work time tracking actually defined? Working time recording is a widely used concept that involves the basic recording and documentation of an employee's working time. So far, so good. But it is also an important method of tracking and accounting for an employee's working hours, holidays and other absences. In Germany at the latest since the BAG ruling daily working hours must be recorded from September 2022. This is the only way to ensure compliance with working time regulations.
Many roads lead to Rome - this is also the case when it comes to recording working hours. After all, the BAG ruling of September 2022 at the latest made the recording of working hours mandatory in Germany. The BMAS's draft bill for a Law on the recording of working hours goes one step further: the draft stipulates that working hours must be recorded electronically. Exception: Companies with fewer than 10 employees are exempt from the electronic recording obligation, but must still document their working hours - whether manually, on paper or using software is up to the company. The following is also important here Obligation to store for at least two years!
For employers, the recording of working hours is crucial for tracking productivity and labour costs. It makes it possible to monitor overtime and minus hours as well as the holiday and Absenteeism management to keep an eye on. In addition, the recording of daily working hours helps companies to ensure compliance with Working time regulations and can help to avoid conflicts that could arise from unpaid overtime or inaccurate working time reports.
Of course, employees also benefit from accurate working time recording:
🕒 A precise record of the hours worked.
💰 Secure compensation for overtime in accordance with clearly defined rules.
🤝 Strengthening employees' trust in the company.
🖥️ No additional administrative work thanks to modern software solutions.
💸 Significant cost savings by reducing the time and effort required for manual recording.
According to the judgement of the European Court of Justice in 2019, precise documentation of working hours is also mandatory in Germany. Although no corresponding law on recording working hours has been passed to date, the Federal Labour Court clarified in September 2022 that this is mandatory. Regulations apply directly. In its judgement, the court emphasised that No transition period exists and employer as of now are obliged to record working hours accurately.
According to the decision of the Federal Labour Court (BAG), executive employees are entitled to § Section 5 (3) of the Works Constitution Act are exempt from the obligation to record working hours. This applies in particular to Executiveswho have independent hiring and firing authority or who hold significant power of attorney.
In addition, persons who fall under § Section 18 (1) ArbZG are not subject to the obligation to record working hours. This includes chief physicians, heads of public offices with decision-making authority in personnel matters, as well as employees in the public sector who live in the same household as the persons they care for and look after them independently.
Working hours can be recorded in various ways, depending on factors such as company size, degree of digitalisation, industry specifications and working time models. The most common options are
| Stationary time recording terminal | Registration to Terminals with card, chip, smartphone or fingerprint in business premises. |
| Time clock | Traditional method in which employees register their working time by clocking in. Is increasingly being replaced by digital solutions. |
| Transcript | Manual recording of the start and end of work and break times by employees, often on a computer. Time sheets. Suitable for smaller companies and specific working environments. |
With ZEP, you can rely on modern time recording software that enables you to record working times seamlessly and to the minute. Particularly noteworthy is our mobile apps for Android and iOS, which enables your employees to record their working times easily and accurately from anywhere. This flexibility not only supports the field service efficiently, but also ensures that no working or break times are lost.
In addition, ZEP offers a user-friendly web-based platform that enables quick analyses in various formats and helps you to implement working time models such as Flexitime optimised management. Benefit from our free trial version for 30 days and experience for yourself how ZEP can simplify your working time management!
Working time and project time recording are two concepts that play an important role in the corporate world. Although they may seem similar at first glance, they are actually quite different in terms of how they work and their objectives.
"Enough words have been spoken, now let us finally see action! Although there is no mention of project time recording in Goethe's Faust, this quote is quite apt, because: Now that we have explained the meaning and functionality of working time and project time recording, let's focus on the 5 main differences between the two approaches.
The main difference between working time recording and project time recording is probably the focus and the objective. Working time recording focuses primarily on the individual working time of employees. Thus, payroll, overtime and compliance with working time regulations can be managed in a cost-efficient and time-saving way. Project time tracking, on the other hand, aims to measure and manage the time spent on specific project activities in order to optimise project performance and use the budget effectively. Both approaches can of course be done manually. But it makes rather little sense, as it is error-prone and time-consuming. Why not save time and money? With a cloud-based solution, it's all the easier.
Another important difference concerns the time units and levels that are recorded. While working time recording mainly records an employee's daily working hours, project time recording focuses on recording specific project activities. This leads to the greatest possible transparency vis-à-vis the customer, as invoicing can be based on hours or even minutes. A suitable software solution for project time recording supports companies from Offer until the Invoicingso that they retain full control over their projects at all times.
All at once or individually? Depending on what function an employee has in the company, the recording areas also differ. The pure Work time tracking The project time recording usually concerns the entire employee base of a company and is often standardised company-wide. In contrast, project time recording is limited to specific projects or project teams and can vary depending on the requirements or complexity of a project. With a reliable software solution, you can reconcile the two. ZEP offers, for example, in the version "Professional" additional modules with which pure time recording as well as project-specific times can be recorded, documented and invoiced.
What are working hours recorded for? And what is important for Project time tracking? Well, working time recording data is mainly used for payroll accounting, working time regulation and - most importantly - compliance with legal regulations. As you can see, time tracking is not an annoying evil, but protects employees from accumulating too much overtime and requires employers to comply with working time laws. Project time tracking, on the other hand, is about evaluating the progress, efficiency and profitability of projects and Project planning and costing can be optimised. Suitable software for project time recording can help companies to optimise the Resource planning for future projects so that no project participant is over- or under-challenged.
Why and for what purpose are working and project times actually recorded? The type of reporting and analysis are also very different for both models. This is because the results of pure working time recording can usually be presented in the form of working time accounts and payslips. Whereas the results of project time recording are often summarised in extensive Project reports and analyses that cover various aspects of project management. This means that those responsible always have an overview of detailed project controlling and can present the customer with a transparent invoice and a comprehensive project report. This ensures that there are no misunderstandings.
Despite all the major differences, working time recording and project time recording also share a handful of similarities and can complement each other.
Working time recording and project time recording are crucial for resource management in companies. Working time recording optimises employees' working time, minimises overtime and promotes even workload distribution. It is particularly useful for shift work and project teams. Project time tracking enables precise resource planning and budget control for projects. By recording project times, companies can recognise bottlenecks in good time and avoid cost overruns. Both systems use real-time data to optimise resource utilisation and increase overall efficiency by allowing them to react quickly to changes.
Both recording options are crucial for cost control in companies. Time tracking enables precise monitoring and management of labour costs, which helps companies to control their expenses effectively. Project time tracking significantly improves budgeting and cost estimates for projects and helps to identify potential cost overruns at an early stage. Both systems therefore make a significant contribution to optimising financial planning and adhering to budget targets.
Both project time and working time recording provide detailed insights into the time spent on various (project) tasks. This data serves as a basis for analysing and optimising work processes. By regularly analysing the recorded data and implementing Feedback loops companies can continuously improve their operational efficiency. This can be done through training, adapting work processes or technological upgrades based on the knowledge gained.
Precise recording of working time is essential for every modern company. In view of the current legal situation and advancing digitalisation, accurate time recording is not only mandatory, but also offers numerous advantages. It enables employers to efficiently manage working hours, holidays and absences as well as comply with legal regulations. For employees, this means fair payroll accounting and the avoidance of conflicts. Modern software solutions such as ZEP make these processes even easier by enabling seamless recording and flexible evaluation of working hours, supported by a user-friendly mobile app and web-based platform.
Precise recording of working hours is not mandatory in all sectors, but it has been compulsory for all companies in Germany since September 2022 in accordance with the BAG ruling. Exceptions apply to certain senior employees and specified groups of people in accordance with Section 5 (3) of the Works Constitution Act.
In principle, only authorised persons such as HR managers and, if applicable, works councils have access to the recorded working times. This is done as part of payroll accounting, working time monitoring and compliance with legal regulations.
Modern digital time recording systems such as ZEP offer a high level of security for personal data. They use encrypted connections and store data in German data centres. In addition, strict Privacy policy to ensure the confidentiality and integrity of personal information.
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