GDPR compliantHosted in GermanyNo credit card requiredCancel anytime
EasyHours
Start free trial

Compliance guide

Time tracking laws: what employers need to know

Reviewed April 2026

Time tracking laws vary by country, state, industry, and worker type. In many jurisdictions, employers need accurate work hour records to support payroll, overtime, working time limits, rest periods, and compliance documentation.

In the United States, the Fair Labor Standards Act requires covered employers to keep certain records for non-exempt workers, including hours worked and wages earned, and does not require a specific recordkeeping format. In the European Union, employers must keep an objective, reliable, and accessible record of daily working time, on top of the working time limits set by the Working Time Directive.

Start free trialSee how EasyHours works
  • Reviewed April 2026
  • Covers EU, UK and US
  • Sources cited inline
  • Not legal advice

General guide for employers. Not legal advice — check local rules or seek qualified advice before relying on any process for compliance.

Time clock

EasyHours

Martin

Martin

Ready to start?

Clocked in at --:--
14 Bishopsgate, London
Clock
Entries
Schedule
Menu

On this page

Are employers legally required to track employee time?

There is no single global answer

Some countries require detailed work hour records. Others require employers to keep enough records to prove compliance with wage, overtime, working time, or rest rules. Requirements can also differ for hourly employees, salaried employees, contractors, exempt employees, night workers, young workers, remote workers, and industry-specific roles.

The safest approach is to use a consistent, accurate, and transparent time tracking process that supports payroll, reporting, employee access, and legal documentation — and to verify the specific rules that apply in each country where you employ people.

Common requirements

What most employers need to plan for

Specific obligations vary, but the same recordkeeping themes appear across most jurisdictions. Use this as a starting checklist before drilling into the rules of a specific country.

RequirementWhat it means in practiceHow EasyHours can help
Accurate hours workedRecord when employees work and how much, day by day, in a way that can be verified later.Employees clock in and out from one app, with timestamps captured in the moment.
Overtime supportIdentify when employees exceed daily or weekly overtime thresholds.Reports flag overtime hours so managers can review and approve them before payroll.
Payroll documentationUse time data to support wage calculations and pay records.Approved hours export to CSV/Excel for payroll and accounting workflows.
Breaks and rest periodsTrack or document compliance with daily and weekly rest rules where required.Time records show working patterns and break durations across the period.
Employee accessLet employees view or confirm their own time records.Employees see their own hours in the app and can submit corrections.
RetentionKeep records for the period required by local labor and tax law.Centralized storage with exportable history kept for the life of the account.
Privacy controlsAvoid excessive tracking or monitoring beyond what's proportionate.Configurable features so you only collect what you need, with clear policies.

By region

Time tracking laws by region

An overview of the major frameworks English-speaking employers ask about. Each section links to the official source.

Jump to a region

United States

In the United States, the Fair Labor Standards Act requires every covered employer to keep certain records for each non-exempt worker. The U.S. Department of Labor states that the law does not require a particular form of records, but the records must include accurate information about the employee, hours worked, and wages earned. Required records include hours worked each day and total hours worked each workweek.

The FLSA also requires covered employees to receive overtime pay at not less than one and one-half times their regular rate for hours worked over 40 in a workweek. The Department of Labor notes that the amount employees should receive cannot be determined without knowing the number of hours worked.

U.S. topicPractical implication
Non-exempt employeesEmployers should keep accurate daily and weekly hour records.
OvertimeWeekly hours matter for overtime calculations at 1.5× the regular rate over 40 hours.
Record formatNo specific format is required, but records must be complete and accurate.
RetentionPayroll records: at least 3 years. Wage-computation records (e.g., time cards): at least 2 years.

European Union

Two layers apply in the EU. First, the Working Time Directive (2003/88/EC) sets minimum standards: a 48-hour average weekly working time limit including overtime, a rest break when on duty for more than 6 hours, at least 11 consecutive hours of daily rest, at least 24 uninterrupted hours of weekly rest in addition to daily rest, and at least 4 weeks of paid annual leave.

Second, in CCOO v Deutsche Bank (Case C-55/18, May 2019), the Court of Justice of the European Union ruled that EU Member States must require employers to set up an objective, reliable, and accessible system for recording the daily working time of each worker. Together, the directive and the CJEU ruling mean employers across the EU must both stay within the working time limits and keep daily working-time records that prove it.

National rules and collective agreements then add more specific requirements on retention, format, and exceptions.

EU topicPractical implication
Daily working-time recordingEmployers need an objective, reliable, accessible system that captures actual hours worked per worker per day.
48-hour weekly limit (average)Employers need enough data to monitor and prove average weekly hours stay within the limit.
Daily restWork patterns should support at least 11 consecutive hours of daily rest.
Weekly restEmployers should be able to document at least 24 uninterrupted hours of weekly rest.
BreaksWorkers on duty for more than 6 hours must receive a break, with details set by national law or collective agreements.
National differencesEach Member State has its own retention period, exceptions, and inspection rules.

United Kingdom

In Great Britain, Acas explains that employers do not need to keep records of all daily working hours, but they must keep records to prove workers are not exceeding the 48-hour weekly maximum, are not breaking night-work limits, have been offered health assessments for night work, and that young workers are not working during restricted periods. Acas says employers must keep these records for 2 years from the date they were made.

Note that UK rules diverge from EU recordkeeping expectations after Brexit — the daily-working-time recording requirement set out in CJEU C-55/18 does not apply to the UK in the same way, although employers operating across the EU and UK often standardize on a single system for simplicity.

UK topicPractical implication
48-hour maximumEmployers need records that prove compliance unless the worker has signed an opt-out.
Night workNight-worker limits and offered health assessments may need documentation.
Young workersAdditional working-time restrictions apply to workers under 18.
Record retentionKeep relevant records for 2 years.

Other countries

Rules differ significantly by country, state, sector, and worker type. Employers should check local labor law, payroll law, collective agreements, tax recordkeeping rules, and privacy requirements before relying on a single time tracking process globally. Country-specific guides will be added as they are reviewed.

How long must I keep records?

Retention at a glance

Retention periods vary widely. The values below are general references — sector-specific rules, collective agreements, and tax law may require longer retention.

JurisdictionRetentionSource
United States — payroll records≥ 3 yearsDOL Fact Sheet #21 (FLSA)
United States — wage-computation source records (e.g., time cards)≥ 2 yearsDOL Fact Sheet #21 (FLSA)
United Kingdom — working-time records2 yearsWorking Time Regulations 1998 / Acas
Denmark≥ 5 years2024 working-time registration rules
Germany — minimum wage / sector records≥ 2 yearsMindestlohngesetz (MiLoG) §17
Spain — daily working-time records4 yearsReal Decreto-ley 8/2019
European Union — general baselineSet by each Member StateWTD + national implementing rules

What's at stake

Sanctions and risk

Failure to keep adequate records can lead to fines, back-pay liability, and reputational damage. Specifics depend on the jurisdiction, the size of the employer, and whether the breach is treated as inadvertent, repeated, or willful.

United States

Back wages, liquidated damages, civil penalties

Under the FLSA, the U.S. Department of Labor can recover unpaid wages and an equal amount in liquidated damages. Repeated or willful violations can trigger civil money penalties per violation, and willful criminal violations can carry fines and, in extreme cases, imprisonment.

U.S. Department of Labor — FLSA enforcement

United Kingdom

HSE enforcement and tribunal claims

Working Time Regulations breaches can be enforced by the Health and Safety Executive (or local authorities), and individual workers can bring claims at an employment tribunal — for example, for unpaid statutory leave or denied rest breaks.

HSE — Working time regulations

Germany

Fines under MiLoG up to €30,000

Under the Mindestlohngesetz, failure to record working time correctly in covered sectors can be fined up to €30,000 per case. The Bundesarbeitsgericht's 2022 ruling has also raised expectations that all employers maintain a working-time recording system.

Spain

LISOS fines €751–€7,500 per infraction

Under the Ley sobre Infracciones y Sanciones en el Orden Social, failures around daily working-time registration can be fined €751–€7,500 per infraction, often per worker — meaning a single audit can multiply fines across the workforce.

Spreadsheets vs. software

Can employers use spreadsheets for time tracking?

Spreadsheets can work for very small teams, but they become harder to manage as the company grows. The main risks are missing entries, inconsistent formats, manual approval, lost files, limited employee access, and weak reporting.

SpreadsheetTime tracking software
Easy to startBetter for daily operations
Low costBetter for teams and managers
Manual follow-upCentralized reporting
Risk of missing filesOrganized, retained storage
Limited employee accessEmployee self-service
Manual payroll exportsEasier reporting and export
Start free trialSee the time tracking app

Privacy and monitoring

Employee privacy, GPS, and monitoring

Time tracking should be transparent and proportionate. This is especially important if the system includes GPS, location tracking, activity monitoring, or other employee oversight features.

The UK Information Commissioner's Office warns that monitoring staff can be intrusive and says employers should ensure monitoring is justified, fair, necessary, and proportionate. The ICO gives the example of vehicle location tracking being more appropriate when it can be turned off outside working hours for mixed work and personal use.

Privacy checklist

Privacy questionRecommended approach
Why are we tracking time?Explain the business and legal purpose in writing.
What data is collected?List hours, projects, breaks, location, and notes — and only collect what you need.
Who can see the data?Limit access to relevant managers and admins.
Is GPS used?Use only when necessary and explain when it applies and when it does not.
Can tracking be turned off?Avoid tracking outside working time, especially on personal devices.
How long is data stored?Match legal and operational retention needs — no longer.
Are employees informed?Provide a clear internal policy and notify employees.

How EasyHours helps

EasyHours and time tracking compliance

EasyHours helps companies create a clearer, more consistent process for tracking employee work time. Employees can register time digitally, while managers get a central overview of hours, reports, and exceptions. EasyHours does not replace legal advice, but it can support the practical recordkeeping and reporting that many employers need.

app.easyhours.eu/approvals

Approvals

WeeklyBi-weekly
Week 12 · 17 – 23 Mar
8pending
3with anomalies
41.2havg / week
EmployeeHoursAnomalies

Emily Jones

Foreman

41h 30m
Overtime Tue

Oliver Brown

Electrician

38h 45m
No issues

Charlotte Davis

Installer

42h 00m
Missing Wed

James Smith

Site lead

40h 00m
No issues

Liam Turner

Installer

47h 30m
Over 45h cap
Last bulk approval · 5 timesheets by Manager · Mon 10:12 AM
3 selected
EasyHours featureCompliance benefit
Digital time registrationCreates a consistent, timestamped process for employees.
Employee self-serviceHelps employees view and confirm their own records.
Manager overviewMakes missing or unusual entries easier to spot.
ReportsSupports payroll, audits, and internal documentation.
ExportsHelps move time data into payroll or finance workflows.
App and web accessSupports office, remote, and field teams.
GPS and location, where usedUseful for field teams when applied transparently and proportionately.
Start free trialSee EasyHours in action

Implementation checklist

Before you introduce time tracking

Use this checklist to prepare a time tracking rollout that is consistent, transparent, and easy for employees to follow.

  1. 1Identify which employees need to track time.
  2. 2Confirm the rules that apply in each country, state, or region.
  3. 3Decide what employees should record: start/end time, total daily hours, project time, breaks, or exceptions.
  4. 4Choose a system: spreadsheet, app, or full time tracking software.
  5. 5Define who reviews and approves time records.
  6. 6Decide how records will be stored and for how long.
  7. 7Create a written time tracking policy.
  8. 8Tell employees what data is collected and why.
  9. 9Train employees on the process.
  10. 10Review missing entries and exceptions regularly.

Copy-and-paste asset

Example employee notice for time tracking

A short message you can adapt and send to your team when introducing a new time tracking process.

Subject: New time tracking process

Starting on [date], we will use EasyHours to record working time. The goal is to keep accurate work hour records, support payroll and reporting, and make the process clearer for both employees and managers.

You should record your working time each workday. If you make a mistake or need a correction, contact [responsible person].

You can access EasyHours here: [link]. We will briefly walk through the process on [date].

FAQ

Frequently asked questions about time tracking laws

  • Are employers legally required to track employee time?+

    It depends on the country, state, worker type, and applicable labor rules. Many employers are required to keep records for payroll, overtime, working-time limits, or rest-period compliance — and EU employers must keep daily working-time records since the 2019 CJEU ruling.

  • Is there one global time tracking law?+

    No. Time tracking rules are local. A global company should use a consistent internal process, but it should still check the legal requirements in each country where it employs people.

  • Can spreadsheets be used for employee time tracking?+

    Often yes, especially for small teams, but spreadsheets require strong manual controls. They are harder to manage when several employees, approvals, payroll exports, or long retention periods are involved.

  • Do salaried employees need to track time?+

    It depends on local law and worker classification. In some countries or situations, salaried employees may still need to track working time, overtime, exceptions, or rest-period compliance.

  • What is the difference between time tracking and employee monitoring?+

    Time tracking records work time. Employee monitoring may involve broader oversight such as location tracking, activity tracking, screenshots, or productivity monitoring. Monitoring usually raises stronger privacy concerns and a higher bar for justification.

  • Is GPS time tracking legal?+

    It depends on the jurisdiction and how the tracking is used. Employers should have a clear purpose, inform employees, avoid unnecessary tracking, and avoid tracking outside working time unless there is a lawful and proportionate reason.

  • How long should employers keep time records?+

    Retention periods vary by country and record type. For example, U.S. federal guidance says payroll records should generally be preserved for at least 3 years, while records used for wage computations should generally be retained for 2 years.

  • Can EasyHours make my company compliant?+

    EasyHours can help with time registration, reporting, and documentation. Legal compliance also depends on local law, company policy, worker classification, payroll setup, and how the system is used.

Next steps

Related EasyHours pages

Other pages that help you choose, set up, or migrate to a time tracking workflow that supports your compliance needs.

Sources and disclaimer

Sources used in this guide

This guide provides general information about time tracking laws and employer recordkeeping. It is not legal advice. Requirements vary by country, state, industry, worker type, and collective agreement. Employers should check local rules or seek legal advice before relying on any time tracking process for compliance.

Last updated: 2026-04-27

Try EasyHours

A clearer process for tracking working time

Replace manual timesheets with a reviewable workflow: employee recording, manager approval, corrections, and exportable reports.

Start free trialTalk to us