Since the ECJ ruling of 14 May 2019, it has become clear that the recording of employee working hours will become mandatory - for managing directors of large and small companies alike. But how can this requirement be implemented in a timely, cost-effective and simple manner?

We have already dealt with the topic some time ago. So it's high time to share our knowledge!

7 facts to help you find the best solution for your business. It doesn't matter if you're just starting to learn about time tracking software or if you're looking to replace your current tracking system: We'll show you what to look for and save you time and money in the process.

Sound good? Then let's get started.

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#1 Working time recording becomes your duty

One piece of good news first: Until now, the obligation to record working hours has only existed in exceptional cases. If you employ mini-jobbers, long-distance lorry drivers or young people, for example, you have to document their working hours precisely. The same applies to employees in sectors that are subject to the German Act to Combat Undeclared Work.

If you are not affected by this, it means that you are not yet liable to prosecution. However, the obligation to record working time will soon be anchored in the Working Time Act. This corresponds to the EU Working Time Directive and must therefore be implemented by the German legislator in a timely manner.

A new draft law is also already available.

Furthermore, there are already good reasons to introduce a time recording system at an early stage. For example, for overtime tracking.

The Emden Labour Court ruled in February 2020: In case of doubt, an employer has the obligation to set up a system for recording daily working hours in order to be able to provide complete evidence of overtime. Otherwise, there is a risk of high additional payments.

So the fact is: Recording working hours will become your duty and is already necessary now to be on the safe side legally . You can find more detailed information on this in our article on compulsory time recording.

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#2 Your duty but not your task

Your task as an entrepreneur is to delegate tasks. The working time recording is predestined for this. As soon as you provide a suitable time recording system, you can delegate this task to your employees.

That means you:

On the one hand, you need a system that meets the legal requirements. On the other hand, you should include the wishes of your employees in the decision-making process.

In this article, we highlight both aspects, starting with the legal requirements for a working time recording system:

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#3 Accessible, objective and reliable it must be

In its ruling last year, the ECJ left open which system can be used to record working time.

However, it has defined three requirements that a time recording system must meet:

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• Accessibility: Means that each employee can manage their data individually. At the same time, the stored information can be easily viewed by the works council or authorities in the event of audits.
  
• Objectivity: Means that only data relevant to the recording of working time, in particular the start and end of work, may be collected and evaluated.
  
• Reliability: Means the system is easy to update and is extremely accurate.
  

And now comes the crucial point:

Only with the help of digital solutions can these legal requirements be implemented in a cost-effective and at the same time employee-friendly manner. However, there are a few things to keep in mind.

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#4 Software is not just software

There are countless variants of time tracking software on the market, which are basically based on three types. These are, depending on the company, more or less optimally suited. We have taken a look at them and assessed them from an SME perspective:

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It turns out, web-based solutions clearly stand out in their suitability for small businesses. Not least because of this, there are also oodles of vendors in the online time tracking space! And that is both a blessing and a curse.

How you can recognize a good software for time tracking, we have summarized in the next point:

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#5 You can recognize a good tool by 6 aspects

In order to really reduce your workload and administrative effort, the time tracking tool you choose should take the following aspects into account:
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• GDPR compliance: For web-based software solutions, make sure that the servers are located within the EU.
  
• Completeness: Your goal is to handle everything up to the signed timesheet at the end of the month via a tool. Attention: Most solutions fail at this point. It cost us a lot of time and nerves!
  
• User-friendliness: Every employee should be able to understand and use the software without any problems. This only works through clear and simple design. Screenshots are often enough to get an impression of the quality of a software.
  
• Relief: The software thinks for itself. It reminds you and your employees of upcoming events, missing data or incorrect entries.
  
• Working time models: The orientation to the modern working world with home office, full-, flex- and part-time models should be mapped by the software just as much as "traditional" variants. If the provider provides specific information about this, it will save you a lot of time and nerves in the testing process.
  
• Updates: These are an important indication of how up-to-date and secure the software is. For example, if you're considering a time tracking app, look for the app's last update date in the store. (And note: Updates should always be included in the product price).

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Each of these aspects would probably deserve its own article. We'll focus on the key points so that you can quickly get an overview. However, if you have any questions, feel free to send us an email at service@sawayo.de.

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#6 Involve your employees!

In #2 we already mentioned the role of your employees and their needs. You want them to record their working hours with a tool of your choice. So why not involve them in the selection of the right software?

The ideas of your employees would at least like this approach. According to the StepStone study "Working in the 21st Century ", 92% of the professionals surveyed would like to be able to make their own decisions about their job and its structure.

In addition, you may have made the experience yourself: as soon as employees are involved in decision-making processes, the final result is more comprehensible to them and ultimately more acceptable.

That's why we recommend that you record your employees' ideas and wishes at an early stage and start the selection process based on this. How would your team like to record working time? Via smartphone or on the PC? Is the design more important than many functionalities? How about if the vacation request can also be processed digitally?

Before you present a solution, first gather feedback on the topic, test 1-2 tools and define your goals and objectives.

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#7 The price is not everything, it must be fair

As soon as you take a closer look at individual solutions, costs quickly become an influencing factor. We know this. And we have learned something important from it:

The price must not be the deciding factor!

There are too many solutions that potentially cost you much more money and time than planned (or promised by the vendor).

(That's why the selection process and these facts are so important).

As with the aspects from #5, qualitative differences can also be identified in the pricing policies of providers. The following 5 points will help you to recognize a fair offer:

• The price depends on the number of employees and desired features.
  
• You can pay monthly or annually and in the best case benefit from a discount for annual payment.
  
• The notice period is short (1 month for monthly payments / max. 2 months for annual payments) and allows you to remain flexible.
  
• You can test the software without obligation and there is no contract directly following the test phase.
  
• You have various payment methods at your disposal and only have to enter your payment details if you really want to buy the software.

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A tip for the end

You now know everything you need to know to find the best time tracking software for your business.

But we would like to give you one additional tip: Test tools that offer your employees AND you added value.

Good time tracking software makes your employees the key players. And that can be doubly to your advantage. The keyword here is: Employee Self Service (ESS).

Basically, the aim is to enable employees to carry out certain processes as easily as possible on their own. A practical example of this is the independent recording of working hours via a separate employee account. (So that's what we're talking about here all the time).

In addition to time recording, some solutions, such as Sawayo, map other processes using the same software and enable employees to handle these processes paperlessly and from any location.

In concrete terms, this involves, for example, read receipts for documents, holiday applications or sickness notifications.

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In the future, you will not only fulfill your obligation to record working hours, but also digitize internal processes in the simplest way possible.

Now it's your turn. We wish you success in choosing the right time recording system and welcome your feedback on the article. Did our facts help you? Which tool did you choose and why? Write us at service@sawayo.de.

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