Accurate tracking of working time is a decisive factor for efficiency and fairness in every company. In view of the increasing complexity of the working world and advancing digitalization, modern solutions for tracking working time are essential. In this article, we look at the current legal situation, the various advantages of accurate time tracking and clarify the question of what the difference is between work and project time tracking.
Working time tracking — the cornerstone for every company
How is Working time tracking actually defined? Working time tracking is a widely used concept that includes the basic tracking and tracking of an employee's working time. So far, so good. But it is also an important method for tracking and accounting for an employee's working hours, vacation days, and other absences. In Germany, at the latest since BAG verdict From September 2022, daily working hours will be recorded. This is the only way to ensure compliance with working time regulations.
How does working time tracking work?
Many roads lead to Rome — this is also the case when it comes to tracking working time. Because: With the BAG ruling of September 2022 at the latest, tracking working hours became mandatory in Germany. The BMAS draft bill for a Working Time tracking Act goes one step further: The draft states that working time tracking must be carried out in electronic form. Exception: Companies with fewer than 10 people are exempted from the electronic registration requirement, but must still document their times — whether manually, on paper or via software, companies are free to do so. It is also important here that Retention requirement of at least two years!
Importance of working time tracking for employers
For employers, tracking working time is crucial to be able to track productivity and labor costs. It makes it possible to monitor overtime and minus hours as well as vacation and absenteeism management to keep an eye on. tracking daily working hours also helps companies comply with Working time regulations and can help prevent conflicts that could result from unpaid overtime or inaccurate working time reports.
Benefits of working time tracking for employees
Of course, employees also benefit from accurate tracking of working time:
🕒 A precise record of hours worked
💰 Secure payment for overtime in accordance with clearly defined rules.
🤝 Strengthening employee confidence in the company.
🖥️ No additional administrative work thanks to modern software solutions.
💸 Significant cost savings by reducing time and effort spent on manual records.
Current legal situation: Is tracking working time mandatory?
According to the European Court of Justice ruling of 2019, precise documentation of working hours is also mandatory in Germany. Although no corresponding law on tracking working time has been passed so far, the Federal Labour Court clarified in September 2022 that this Regulations apply immediately. In its judgment, the court emphasized that no transition period Existing and employer from now on are required to record working hours precisely.
Who is exempt from the regulation?
According to the decision of the Federal Labour Court (BAG), senior employees in accordance with Section 5 (3) of the Works Constitution Act exempted from the obligation to record working hours. In particular, this concerns managerswho have independent recruitment and dismissal powers or have significant power of attorney.
In addition, people who fall under Section 18 (1) ArbZG are not included under the obligation to record working hours. These include chief doctors, heads of public services with decision-making powers in personnel matters, as well as public sector workers who live in a home community with cared persons and provide them with their own responsibility.
The most common ways to track working hours
Working hours can be recorded in various ways, depending on factors such as company size, degree of digitization, industry specifications and working time models. The most common options include:
Stationary time tracking terminalLogin to terminals with card, chip, smartphone or fingerprint in production facilities.time clockTraditional method in which employees register their working time by stamping. It is increasingly being replaced by digital solutions.transcriptManual tracking of work start, end and break times by employees, frequently on Timesheets. Suitable for smaller companies and specific work environments.
Transparent & efficient working time track: That's why ZEP should not be missing in your company!
With ZEP, you rely on modern time tracking software that enables you to record working hours seamlessly and down to the minute. Particularly noteworthy is our mobile apps for Android and iOS, which allows your employees to easily and precisely record their working hours from anywhere. This flexibility not only efficiently supports field staff, but also ensures that no working or break time is lost.
In addition, ZEP offers a user-friendly web-based platform that enables quick evaluations in various formats and helps you to develop working time models such as flexitime optimal to manage. Take advantage of our free trial for 30 days and experience for yourself how ZEP can simplify your working time management!
Working time tracking vs. project time tracking: The comparison
Working time and project time tracking are two concepts that play an important role in the corporate world. Although they both may seem similar at first glance, they are actually quite different in how they work and their goals.
The 5 big differences
“Enough words have been said, now let's finally see action! “Although there is no mention of project time tracking in Goethe's Faust, this quote is pretty accurate, because: Now that we have explained the meaning and functionality of working time and project time tracking, we want to focus on the 5 biggest main differences between the two approaches.
Focus and Objectives
The main difference between working time tracking and project time tracking is probably the focus and the objectives. Working time tracking focuses primarily on the individual working hours of employees. In this way, payslips, overtime and compliance with working time regulations can be managed cost-effectively and in a time-saving manner. Project time tracking, on the other hand, aims to measure and manage time spent on specific project activities in order to optimize project performance and use the budget effectively. Both approaches can of course be done manually. However, it makes little sense, as it is error-prone and time-consuming. Why not save time and money? It's all the easier with a cloud-based solution.
Time units and levels
Another important difference concerns the time units and levels that are recorded. While working time tracking mainly records an employee's daily working hours, project time tracking focuses on tracking specific project activities. This results in the greatest possible transparency for the customer, as billing can be carried out on an hourly or even a minute basis. A suitable software solution for project time tracking supports companies from range up to invoicingso that they always have full control over their projects.
Relevant coverage areas
Everything at once or each one for himself? Depending on which function an employee has in the company, the areas of coverage also differ. The pure Working time tracking This usually affects the entire employee base of a company and is often standardized across the company. In contrast, project time tracking 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 balance both. ZEP offers, for example, the version”Professional“Additional modules with which pure time tracking as well as project-specific times can be recorded, documented and billed.
usage
What are working hours recorded for? And what is important in the Project time tracking? Well, working time tracking data is mainly used for payroll, working time regulation and — very 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 measuring project planning to optimize and calculate. Suitable software for project time tracking can help companies that resource planning for future projects, so that no project participant is over- or underwhelmed.
Reporting & analysis
Why and why are working and project times actually recorded? The types of reporting and analysis are also very different between the two models. Because: The results of pure working time tracking can usually be presented in the form of working time accounts and payslips. Whereby the results of project time tracking are often extensive Project reports and analyses are presented that cover various aspects of project management. In this way, those responsible always have an overview of detailed project controlling and can provide the customer with a transparent statement and a comprehensive project report. This guarantees that there will be no misunderstandings.
3 Similarities & Synergies
Despite all the major differences, working time tracking and project time tracking also share a handful of similarities and can complement each other.
Resource management
Working time tracking and project time tracking are crucial for resource management in companies. Working time tracking optimizes employee working time, minimizes overtime and promotes an even distribution of workload. It is particularly useful for shift work and project teams. Project time tracking enables precise resource planning and budget control for projects. By tracking project times, companies can identify bottlenecks in good time and avoid cost overruns. Both systems use real-time data to optimize resource usage and increase overall efficiency by being able to respond quickly to changes.
Cost control
Both tracking options are crucial for cost control in companies. Working time tracking enables precise monitoring and management of labor costs, which helps companies effectively control their spending. Project time tracking significantly improves budgeting and cost estimates for projects and helps identify potential cost overruns at an early stage. Both systems therefore make a significant contribution to optimizing financial planning and meeting budget goals.
Work more successfully
Both project time and working time tracking provide detailed insights into the time spent on various (project) tasks. This data serves as a basis for analyzing and optimizing work processes. Through regular analysis of collected data and implementation of Feedback loops Companies can continuously improve their operational efficiency This can be done through training, adapting work processes, or technology upgrades based on the knowledge gained.
Conclusion
Accurate tracking of working time is essential for every modern company. In view of the current legal situation and advancing digitalization, accurate time tracking is not only mandatory, but also offers numerous advantages. It enables employers to efficiently manage working hours, vacation and absenteeism, and comply with legal regulations. For employees, this means fair billing and avoiding conflicts. Modern software solutions such as ZEP further facilitate these processes by enabling seamless tracking and flexible evaluation of working hours, supported by a user-friendly mobile app and web-based platform.
FAQs
Is tracking working time mandatory in all industries?
The exact tracking of working time is not mandatory in all sectors, but in accordance with the BAG ruling, it has been mandatory for all companies in Germany since September 2022. Exceptions apply to certain senior employees and specified groups of persons in accordance with Section 5 (3) of the Works Constitution Act.
Who can see my recorded working hours?
How secure is personal data with digital time tracking?
Modern digital time tracking systems such as ZEP offer a high level of security for personal data. They use encrypted connections and store data in German data centers. In addition, strict privacy policies complied with to ensure the confidentiality and integrity of personal information.
