When it comes to running a successful business, it's important to stay on top of all the legal requirements. Local labor laws require employers to keep track of all administration and hours of their employee’s work. Let’s take a look at what’s required in the EU and US.
There are many reasons to have a reliable system in place to record the work hours of your employees. To ensure trust and transparency, you should be able to provide your employees with an overview of their worked hours, including overtime, at all times. You will probably recognize that an easy time & attendance solution will increase employee satisfaction. Labor laws are another thing to consider. These are even more important now many countries have implemented, or are working on, new labor laws concerning time registration.
Of course, legal requirements vary depending on region or industry, so it’s important to know what applies where. One key aspect of labor law that applies in many countries, however, is the requirement for businesses to accurately record work hours. This is not only important for ensuring employees are paid and compensated fairly, but also for protecting the business from potential legal issues down the line.
USA: Recording Work Hours is Extremely Important
Let’s take a look at some countries. An interesting case is labor law and time registration in the United States. 58.3% of people here are paid hourly and accurate time tracking is therefore extremely important. If your US business is not paying its employees properly, it can be at risk of violating federal and state laws. While the Fair Labor Standards Act (FLSA) does not require businesses to track time for their employees, it does require that all hours worked are paid with no deductions for lunch breaks.
In the US, individual states have their own labor laws they may abide by on top of federal laws, which provide extra protection to employees. But ultimately, it comes down to this: if you own a business in the US and you pay your employees hourly, you want to ensure they are being paid correctly. The first step here is to establish a clear time-tracking system.
EU: New Laws in the Making
In the European Union, the situation is a bit different than in the US. While the old-fashioned ‘pen & paper’ method of recording work hours has been popular in many European businesses for a long time, they are now looking for more modern solutions. A big reason is the ruling of the European Court of Justice on May 14th, 2019, which requires all employers within the European Union to set up a system to measure the working hours of their employees.
The ECJ ruling aims to protect employees by ensuring all labor laws are complied with. All countries within the European Union must formulate and implement the new ruling as they see fit, as long as the law states that all employers must set up an objective, reliable, and accessible system enabling the duration of time worked each day by each worker to be measured.
How Can TimeMoto Help You?
Whether your business is in the US, EU, or elsewhere, our TimeMoto time and attendance solutions are flexible. We have designed it so they can cover all local requirements regarding labor law and regulations.
TimeMoto offers the ultimate solution to reliably register working hours and manage your workforce. Our beautifully designed time clock systems provide accessible clocking using advanced methods such as RFID, MIFARE, DESFire, fingerprints, and face recognition. Your employees can clock in and out within seconds while you can monitor and measure their working hours in real-time with TimeMoto Cloud.
Any changes to any laws and you’ll be fully prepared. And you and all your employees will be protected.
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