European time-tracking law

Let’s talk about the elephant in the conference room: The EU’s Working Time Directive. What started as a seemingly routine court case in Spain - CCOO (a workers’ union) vs. Deutsche Bank - ended up reshaping time tracking across the entire European Union.

The EU working time directive: Your new reality

In May 2019, the European Court of Justice ruled that the bank’s loose approach to time tracking violated both the EU’s Working Time Directive and the Charter of Fundamental Rights. The result? A mandate requiring all EU employers to establish “an objective, reliable, and accessible system” for measuring daily working time. This includes updating GDPR processes and implementing a reliable time-tracking software solution.

Interestingly, many EU member states already had explicit timekeeping requirements in their labor laws even before this ruling, including Austria, Croatia, Poland, Estonia, Finland, Luxembourg, Hungary, Romania, Slovakia, Slovenia, Latvia, and Portugal. Others, like Greece, have recently adopted new employment laws mandating electronic systems for employee timekeeping via digital work cards.

Why did this happen? (Blame Deutsche Bank)

Before May 2019, time tracking in the EU was more of a suggestion than a requirement (unlike in the US, for example). Spain was the first to jump on the bandwagon, implementing the new requirements into their Royal-Decree Law. Other countries followed suit, though some, like Germany, are still fine-tuning their legislation while maintaining strict overtime documentation requirements.

The non-negotiables (Yes, they’re watching)

The EU Working Time Directive isn’t just about counting hours - it’s about ensuring basic human rights in the workplace. You’ll need to guarantee your employees don’t work more than 48 hours per week (averaged over 4 months), get at least 11 consecutive hours of daily rest (because sleep is not a luxury), and make proper breaks after 6 hours of work. And let’s not forget those four weeks of paid annual leave - because everyone deserves a chance to forget their password occasionally.

What’s in it for employees and employers?

Here’s the plot twist: this regulation isn’t just bureaucratic busywork. For employees, it means no more unpaid overtime and a shot at actual work-life balance. For employers, it translates into better resource planning and protection from potentially costly legal issues. Plus, you’ll finally have data-driven answers to questions like “Where did all our time go?” (Spoiler: probably not where you thought).

Speaking seriously, employers get these benefits:

• Organized and digitized records that make payroll and salaries more accurate
• Trust between employers and employees
• Increased employee productivity
• A better understanding of true costs
• More accurate quotes and deadlines based on real historical data

The price of looking the other way

EU member states have their own ideas about appropriate penalties. Germany might slap you with a €15 000 fine, while the Netherlands takes it up a notch with €10 000 per employee. Even Ireland, known for its relaxed attitude, draws the line at €2 500 for inaccurate records. The message is clear: compliance isn’t optional.

Making it work (Without losing your sanity)

This is where modern time tracking solutions come into play. At Kimai, we’ve designed our system to meet all EU requirements while keeping things painless. Our solution is objective (no more honor system), reliable (goodbye, error-prone spreadsheets), and accessible (because transparency shouldn’t require a Master degree in Information Technology field).

The bottom line

Whether you’re running a creative agency in Berlin or managing a tech startup in Barcelona, EU time tracking compliance is your new reality. But with the right tools, it doesn’t have to be the administrative nightmare you’re probably imagining. Think of it as an opportunity to finally understand where your company’s time actually goes - beyond those eternally optimistic project estimates.

Ready to make EU time tracking compliance less of a headache? Try Kimai free today and discover why hundreds of EU businesses trust us to keep them on the right side of the law (and sanity).