The control of employee’s working hours is a question that have been debated over the years, and change in regulation has already taken place. When running your payroll in certain European countries, such as in Spain and Germany for example, you will soon understand that it is necessary to register your employee’s working time to ensure compliance with labour laws and regulations. This is a practice that will promptly be reality for other European countries as a new EU directive is accepted.
As an employer in Spain for instance, you are required by law to keep track of daily working hours of your employees, including the start and end time of the working day, number and time of breaks taken, and any overtime worked. This information must furthermore be recorded and kept on file for a minimum of four years.
The purpose of this is to protect the rights of employees, ensure a safe working environment, and prevent exploitation by employers. By tracking working hours, employers can ensure that their employees are not working more than the maximum number of hours allowed by law, and that they are receiving the appropriate rest periods and breaks.
Furthermore, by keeping accurate records of working hours, employers can also calculate and pay employees’ wages and benefits correctly, including any overtime pay or additional compensation for working outside regular hours.
Which law regulates this?
The European Union’s Working Time Directive regulates the working hours of employees in Europe. The ECJ (European Court of Justice) ruled that all European Union member states must require employers to set up a system to measure the daily working time of their employees to ensure compliance with the maximum weekly working hours and minimum rest periods. The ruling was made in response to a case brought by a Spanish trade union, which argued that Spanish law did not require employers to record the daily working time of their employees.
Following the ECJ ruling, the Spanish government introduced the Royal Decree-Law 82019 in March of that year, which amended the Spanish Workers’ Statute (Estatuto de los Trabajadores), establishing the obligation for companies to guarantee the daily recording of the working day, including the start and end time of the workday, in order to verify compliance with the maximum working day, the overtime hours, and rest periods.
The law also sets out the procedures for record-keeping and establishes penalties for employers who fail to comply with these requirements.
Which tools are there to register the time?
There are various tools and methods available for companies to register working time, For example time clocks, web-based or mobile apps, biometric systems and computer-based systems that can track their working hours automatically by logging in and out of the computer.
The data collected should be kept confidential and secure, and employers must inform their employees of the purpose of the data collection and how it will be used.
So what do I need to think about when employing personnel in countries affected by the EU directive?
In conclusion, when hiring personnel, whether it’s through a local subsidiary or as a foreign employer you need to think about a few things in order to be compliant with the local rules and regulations;
Make sure to record the working hours, over time and breaks of your employees
Store the data for 4 years in case there will be an audit.
Select a suitable solution for registering your timesheets (on-line, app etc)
All employees are requested to register time, also remote workers.
If your company does not comply, there is a risk of up to 6250 EUR fines.
Internago Payroll portal with integrated timesheet
To help companies streamlining their payroll process further, the Internago payroll portal has integrated a timesheet function. All employees are thus able to register their time reports directly in the same system, and managers are able to track and manage them efficiently. By centralizing HR-related tasks within one platform, Internago simplifies the user experience and increase productivity across the organization. Additionally, having all HR functions in one place help improve data accuracy and ensure compliance with company policies and regulations. Overall, integrating a timesheet function into Internago demonstrates a commitment to enhance the user experience and optimizing HR processes within the organization. By using the Internago payroll platform with integrated timesheet functionality you ensure that you follow all necessary laws and regulations needed to comply with European standards.
Internago is your trusted partner, supporting you in your international and local payroll as well as bookkeeping services.
Interested in learning more? Please visit Internago or our Payroll Portal. For further inquiries, contact us at info@internago.com