Time Tracking
Time tracking is the process of recording when employees work, including clock in/out times, breaks, and overtime, for payroll, compliance, and productivity purposes.
processes
Category
beginner
Difficulty
5 min read
Read time
2025-01-15
Updated
Definition
Short definition
Time tracking is the process of recording when employees work, including clock in/out times, breaks, and overtime, for payroll, compliance, and productivity purposes.
Detailed explanation
Time tracking (or time and attendance) is the system for recording employee working hours. Methods range from manual timesheets to biometric systems, mobile apps, and automated tracking.
Accurate time tracking is essential for payroll calculation, labor law compliance (especially for overtime), project costing, productivity analysis, and workforce planning.
Modern solutions include mobile geolocation clock-in, facial recognition, integration with payroll and HR systems, and real-time dashboards.
Practical guidance
How it works
Employees record start, end, and break times. System calculates hours and overtime. Manager approves. Data flows to payroll for processing.
Best practices
Choose appropriate method for workforce
Make clocking easy and accessible
Review exceptions promptly
Integrate with payroll
Comply with data protection
Legal context
Legal basis
Working Time Regulations 1998 (UK); FLSA (US)
Jurisdiction: Global
Key provisions
Must pay for all hours worked
Must track hours for non-exempt employees
Must monitor WTR compliance
Records must be accurate
Data protection for biometric data
Official source
Frequently asked questions
Is time tracking required by law?
For non-exempt employees under FLSA (US), accurate time records are required. UK employers must keep records to demonstrate WTR compliance. Even without legal requirements, accurate tracking prevents disputes.
What about remote workers?
Mobile apps with optional GPS verification, project-based time entry, or trust-based recording are common approaches. The method should balance accuracy with employee privacy and trust.
Related glossary terms
Overtime Rate
Overtime rate measures the proportion of total hours worked that exceed standard working hours, indicating workload pressure and potential burnout risk.
FLSA
FLSA is a US federal law establishing minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers.
Working Time Regulations
The Working Time Regulations 1998 implement EU law in the UK, limiting average working hours to 48 per week and providing minimum rest breaks and annual leave.