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Time & Budget

EU's Mandate on Time Tracking

Filip Kralj
Filip Kralj
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August 23, 2023

In May 2019 there was a change, in how the European Union handles employee time management. The Court of Justice of the European Union made a ruling that requires all companies in the EU to keep track of their employees working hours. This decision came about because of a lawsuit filed against Deutsche Bank in Spain by labor unions.

The main point of disagreement was that Deutsche Banks local branch only recorded employee overtime hours. This approach didn't align with the EUs directive on working time which emphasizes the importance of ensuring employees have rest periods.

Understanding the Directive

The directive states that employees should have 11 consecutive hours off every day and 24 consecutive hours off every week. Additionally they should take breaks after every 6 hours of work. The directive also sets a limit on working hours at 48.

By keeping track of overtime employees were put at a disadvantage. It became difficult for them to ensure that their basic rights and the rights outlined in laws were respected.

Implications for EU Companies

The ruling went into effect immediately. Applies to all businesses regardless of size across all member states of the EU.

To comply with the directive and national laws all employers are now required to utilize a time management system that's objective, reliable and accessible". It is important for employers to understand that not being aware of this requirement or facing budget constraints does not exempt them from their responsibility.

Consequences of Noncompliance

Failure to adhere to this requirement may result in legal consequences, for companies. In cases where employees feel that their working hours are not being accurately recorded, which can jeopardize their labor rights they have the right to initiate proceedings against their employers.

Moreover in any disputes between employers and employees courts will take into consideration the power imbalance that exists in employment relationships. For example if an employee claims to have worked 48 hours in a week while the employer argues it was 30 hours the burden of proof lies on the employer to provide evidence.

Implementing effective time management systems not ensures compliance for companies but also improves employee productivity by approximately 30% leading to increased revenue.

Adopting Time Management Systems

The ruling does not specify the type of time tracking systems that should be used. While traditional methods like logging are allowed they may raise concerns about reliability. Modern automated tools such, as full time calculators offer increased accuracy and efficiency.

When choosing a time management system it is important to take into account features such, as initiation and cessation tracking of time monitoring of URLs and applications and options for maintaining privacy. An optimal solution would be one that strikes a balance, between respecting the rights of both the employer and the employee.

Filip Kralj
To create an amazing product a great amount of collaboration is required. “No one can whistle a symphony. It takes a whole orchestra to play it.“* I was always fascinated by the organizations that were able to deliver incredible results by making it possible for people to actively and effectively collaborate. At easy.bi we believe teamwork is the key to the success and it is the key pillar of our culture. *H.E. Luccock
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