Digital time tracking – mandatory under the minijob bill?

Haven't we had something like this before? The ECJ ruling

Two years have passed since the ruling of the European Court of Justice (Europäischer Gerichtshof, EuGH), which obliges EU member states to introduce working time tracking in their businesses. Many employers have made a virtue of necessity and introduced digital time tracking. In many industries, however, time tracking still happens manually. Under the new minijob bill, digital time tracking was to become mandatory.

What does the ECJ ruling mean for tracking your employees' working hours? Our ebook explains who has to record working hours, when and how – and what that means for timesheets, trust-based working hours and working from home.

Industries affected

Heil wanted to oblige eleven industries listed in Section 2a of the German Act to Combat Undeclared Work (Schwarzarbeitsbekämpfungsgesetz) to use digital working time tracking. They include:

• the construction industry
• the hospitality and accommodation industry
• the passenger transport industry
• the freight forwarding, transport and associated logistics industry
• the funfair and travelling show industry
• forestry businesses
• the commercial cleaning industry
• businesses involved in setting up and dismantling trade fairs and exhibitions
• the meat industry
• the prostitution industry
• the guarding and security industry

Businesses with marginally employed staff and temporary agency workers would have been affected as well.

Exactly how was working time to be recorded?

Under Heil's bill, the start of work had to be documented immediately when work began. The end and the duration of daily working hours were also to be available on the working day in question. Time tracking was to run entirely digitally.

Compared with how working time tracking used to be handled in the industries affected, two things would change:

1. Until now, time does not necessarily have to be recorded digitally.
2. Employers have seven days to make their employees' working hours available for checks by the German customs authority (Zoll) and the occupational safety authorities.

Affected businesses would have had until October to implement the requirements set out in the bill.

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Will Heil's bill be implemented as planned?

Because of the FDP's vote against Heil's bill, the labour minister has removed the passage on electronic time tracking from the bill. The obligation is therefore on hold for now. The reason was doubt about whether the requirement could be put into practice.

Criticism from the time tracking industry

While trade unions support the expansion of time tracking, the temporary staffing industry takes a negative view. Businesses that work in a decentralised way point out that working time tracking in this form may work for office staff, but is not practical where the place of work keeps changing. Unlike agencies, for example, employers at a painting or cleaning company cannot install time tracking terminals at every site.

Try clockin's mobile time tracking now

Out of touch with reality, or a step in the right direction?

Heil's bill sparked a lively debate about how working hours should be recorded in businesses. Putting the bill on hold pushes that debate into the future, but it does not make it go away – especially since new rules such as the ECJ ruling show that the direction of travel is towards more transparency and more system in working time tracking. The criticism of the bill is a wake-up call for businesses: important structures are not in place and should be built now, so that you are prepared for a possible obligation to track time digitally.

Introducing digital time tracking takes less effort than you think

One important objection to Heil's new rule was that there is not enough time to introduce a digital time tracking system. But digital time tracking can be introduced faster than many employers think. Modern providers offer intuitive solutions that need little explanation and slot straight into the working day – even for employees who are less comfortable with technology.

Did you know that our solution clockin was developed for exactly that, together with tradespeople and other practitioners? In our customers' success stories you can read how they introduced digital time tracking in their business and how it changed their working day. We believe that digitalization should solve problems, not create new ones. That is why the entire setup takes only a few hours with us. And if things are too hectic right now, we can take it on for you.

Time tracking via app solves many problems

The criticism of hardware terminals for time tracking in the skilled trades and similar sectors is justified. But the industry already has answers ready. Time tracking via app is not tied to one location and can therefore be used flexibly even when the place of work keeps changing. Employers can decide for themselves whether their employees record their hours on a private phone or on a company smartphone.

Concerns about data protection are not unusual with mobile time tracking. To make the processes secure for everyone involved, we advise you to choose a provider with German servers. That way you can trust that your company's data is handled sensitively. At clockin, for example, we rely on state-of-the-art cloud technology with TÜV- and ISO-certified German servers.

What are the benefits of digital time tracking?

As you can see, many seemingly insurmountable problems can be solved with the right approach. That means you can introduce digital time tracking in your business in a short space of time too. Once the hurdles are cleared, you benefit in many ways.

You save valuable time

With clockin, a business with 15 employees saves 680 hours a year. That time can be put to better use on productive work. And, just as importantly: on family, friends and hobbies.

You cut your costs

Recording time by hand is laborious and drives up staff costs. With clockin, a 15-person business can save €19,121 a year.

The environment benefits

A business with digital time tracking can save almost 5,000 sheets of paper a year. The result: less paper use and more sustainability.

You are better connected digitally

In many businesses, project tasks and details are recorded on paper. That makes a lot of coordination necessary and is inefficient. If you opt for project time tracking and documentation, you can also coordinate internally over distances more easily. That is particularly helpful when the team works on a project at different times (for example on job sites).

Is digital time tracking worth it for your business too? Find out with our checklist.

Conclusion: stay ahead of the bill

With its strict requirements and tight timeframe, Heil's minijob bill triggered a lot of uncertainty and concern. Introducing digital time tracking can indeed involve challenges, as with any other software. But we at clockin believe that with good internal communication, openness to new things and the right software, it is possible. Our experience with customers from a range of industries gives us hope that digitalization in time tracking can happen without major complications.

Although the law on digital time tracking has been put on hold for now, we still recommend that you take steps towards implementation now. There is no question that the obligation to track time will arrive soon as a result of the ECJ ruling, and that employers with modern electronic time tracking systems will have the advantage.

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