The Ruling That Changed Time Tracking in Europe
In May 2019, the Court of Justice of the European Union (CJEU) ruled in the case of CCOO v Deutsche Bank that EU member states must require employers to set up "an objective, reliable and accessible system" for recording the daily working time of each employee.
The ruling was based on the EU Working Time Directive (2003/88/EC) and the Charter of Fundamental Rights. The court's reasoning was straightforward: without a system to record actual hours worked, there is no way to verify compliance with maximum working hours, rest periods, and overtime regulations.
This ruling didn't create a new law — it clarified that existing EU law already requires time recording. The practical effect has been significant: member states across Europe are now implementing or updating their national legislation to enforce mandatory time tracking.
What the Law Requires
The CJEU ruling establishes several key requirements:
- Systematic recording: Employers must record the actual working time of each employee — not just overtime or deviations from standard hours.
- Objective and reliable: The system must produce accurate records, not rely on self-reporting alone.
- Accessible: Records must be available to employees and labor authorities.
- Daily recording: Start time, end time, and breaks should be captured each working day.
The ruling leaves the specific implementation to each member state, which means the details — such as the format, retention period, and penalties — vary by country.
Country-by-Country Overview
Germany
Germany has been moving toward mandatory electronic time recording. The Federal Labour Court (BAG) confirmed in September 2022 that employers are already obligated to record working hours under existing law. The German government has proposed amendments to the Arbeitszeitgesetz (Working Hours Act) requiring electronic recording systems. Key points:
- Electronic recording of daily start, end, and duration of working hours
- Records must be made on the day the work is performed
- Retention period: at least 2 years
- Employees can record their own hours if the employer provides the system
- Small businesses (under 10 employees) may have simplified requirements
France
France has had working time regulations in place since the introduction of the 35-hour work week in 2000. Employers must track hours for employees on hourly contracts. For salaried employees on forfait jours (fixed number of days per year), employers must track days worked rather than hours. Overtime beyond 35 hours is compensated at 125% for the first 8 hours and 150% thereafter.
Spain
Spain was one of the first EU countries to implement mandatory time recording after the CJEU ruling. Since May 2019, all companies must record start and end times for every employee. Records must be kept for 4 years and be available to employees, unions, and labor inspectors. Non-compliance can result in fines up to €7,500 for serious violations.
Netherlands
The Netherlands requires employers to maintain records that demonstrate compliance with the Working Hours Act (Arbeidstijdenwet). While electronic recording is not strictly mandated, employers must be able to prove compliance if inspected. The Dutch system focuses on maximum working hours (60 hours/week, average of 48 over 16 weeks) and minimum rest periods.
How Freelancers and Contractors Are Affected
While the CJEU ruling primarily targets employer-employee relationships, freelancers benefit from time tracking in several ways:
- Proof of hours for clients: Detailed time records prevent disputes over billed hours and provide documentation for invoices.
- Tax compliance: Many countries require self-employed workers to document their working hours for tax purposes (e.g., the Dutch urencriterium of 1,225 hours/year for tax deductions).
- Bogus self-employment protection: If authorities investigate whether a freelancer is actually a disguised employee, time records showing flexible, self-directed work patterns support genuine freelance status.
- Project profitability: Tracking hours per project helps freelancers understand which clients and projects are genuinely profitable.
Choosing a Compliant System
The EU directive requires a system that is objective, reliable, and accessible. In practice, this means:
- Digital over paper: While paper timesheets aren't explicitly banned, digital systems are more reliable and easier to retain for the required periods.
- Tamper-resistant: Records should be difficult to alter retroactively.
- Employee accessible: Workers should be able to view their own records.
- Exportable: Records may need to be shared with labor inspectors, so export to PDF or CSV is essential.
A mobile time tracking app that lets employees clock in and out, stores records securely, and exports detailed timesheets is one of the simplest ways to meet these requirements. Work Counter, for example, records daily start and end times and exports to PDF and CSV, covering the core requirements for most EU jurisdictions.
What Happens If You Don't Comply?
Penalties vary by country, but the trend is clear: enforcement is tightening. Spain already issues fines for non-compliance. Germany's proposed legislation includes penalties for employers who fail to implement electronic recording systems. France's labor inspectorate can flag companies during audits.
Beyond fines, inadequate records put employers at a disadvantage in labor disputes. Without documented proof of hours worked, courts tend to side with employee claims about overtime and unpaid hours.
Getting Started
If you haven't implemented time recording yet, the process is simpler than you might think. A good time tracking app provides the system, and you just need to establish the habit. Start by recording start and end times daily, and export monthly reports for your records. The key is consistency: a system you use every day is infinitely more valuable than a perfect system you never set up.
Stay compliant with Work Counter
Work Counter records daily start times, end times, and breaks, and exports detailed timesheets in PDF and CSV. It's a straightforward way to meet EU time recording requirements. Download Work Counter for free on the App Store.
