Time Tracking: Avoiding Legal Pitfalls with Digital Solutions

Accurate time tracking is not only a legal requirement but also forms the foundation for fair compensation and a trustworthy employment relationship. Since the landmark ruling by the Federal Labor Court in September 2022, companies are obligated to systematically document the working hours of their employees. But what happens when this documentation is inaccurate? What consequences arise from discrepancies, and how can modern time tracking solutions provide a remedy?

The Federal Labor Court established a comprehensive documentation obligation for working hours with its ruling in September 2022. This includes the complete recording of the start, end, and duration of daily working hours as well as break times. The previously applicable regulation, which only required the documentation of overtime, was significantly expanded. Since time records constitute personal data pursuant to Art. 4 No. 1 DSGVO, they are subject to strict data protection requirements. Employers must observe the principles of purpose limitation and data minimization and may not use the recorded data for performance or behavioral monitoring. From an employment law perspective, records must be retained for at least two years. These requirements pose a particular challenge in the event sector, where flexible Working time documentation for multi-day events is required to ensure legally compliant recording of rest periods.

Errors in time tracking can have various causes — from simple oversights to systematic problems. Manual recording systems are particularly prone to inaccuracies. With handwritten records, transcription errors can occur when data is entered into payroll software. Excel spreadsheets offer more clarity but are not protected against data loss or accidental overwriting. Deliberate manipulation of time records occurs when documented working hours are retroactively changed without a valid reason. Particularly in the area of Mini-jobs at events it occurs that more working hours are performed than documented in order not to exceed the legal limits. Such practices are not only morally reprehensible but can also result in criminal consequences.

Employers are obligated to ensure accurate and complete recording of working hours. If errors in time tracking are reported to them, they must correct them immediately. The responsibility for proper documentation ultimately lies with the company, regardless of whether a digital or analog system is used. Employees have the right to accurate recording of their hours worked. To protect themselves against potential errors, it is advisable to maintain their own records parallel to the company system. In case of discrepancies, they should first seek a conversation with the employer and push for a correction. For large-scale events with complex team structures, the use of a Shift planner for large-scale events, which supports efficient staff management while ensuring legally compliant documentation.

The deliberate manipulation of working time data can result in significant legal consequences. Violations of the documentation obligations under the Working Hours Act are classified as administrative offenses and can be punished with substantial fines. It becomes more serious when wages are withheld through inaccurate documentation. This can constitute the criminal offense of withholding and embezzling wages (§ 266a StGB). In severe cases, not only high fines but even prison sentences of up to five years may be imposed. Independent of public law sanctions, employees can assert civil claims for back payment of withheld wages. The burden of proof can shift in favor of the employee if the employer has not properly fulfilled their documentation obligation. In the context of events, it is particularly important to consider Compliance in event staff management to consider in order to reliably meet legal requirements.

Our Digital Solution for Error-Free Time Tracking

To minimize legal risks and ensure error-free time tracking, our digital time tracking solution offers numerous advantages. Our system records working hours automatically and precisely, without the need for manual transfers. This eliminates one of the most common sources of error while saving valuable time in HR administration. Specifically for the event industry, we offer Time tracking systems for the event industry with efficient tracking of working hours and the team leader principle.

Every time entry is provided with a digital timestamp and stored immutably. Subsequent changes are transparently documented and are only possible with appropriate authorization and with a stated reason. Our solution automatically transfers recorded working hours to the payroll system, eliminating transcription errors. This ensures that compensation corresponds exactly to the hours worked. Particularly Payroll processing for event staff presents particular challenges at large-scale events that can be efficiently managed with our solution.

Time tracking data is stored in strict compliance with DSGVO requirements. Automatic deletion after the expiry of statutory retention periods ensures data minimization and legal certainty. Employees can view and verify their recorded working hours at any time. This promotes transparency and enables early detection and correction of any discrepancies. Our Employee app in event management serves as a digital command center for successful large-scale events and provides easy access to all relevant information.

In addition to implementing a digital time tracking solution, further measures can contribute to error prevention. Monitoring time tracking through two independent instances — for example, HR and the direct supervisor — minimizes the risk of errors and manipulation. In companies with a works council, it should be involved in overseeing time tracking. The co-determination rights of the works council in the introduction and application of time tracking systems strengthen employee trust. Regular training raises awareness among both managers and employees about the importance of accurate time tracking and proper use of the system. Transparent and traceable processes for correcting erroneous time entries prevent misunderstandings and strengthen trust in the integrity of the system.

Compared to conventional methods, our digital time tracking solution offers decisive advantages for your company. The automatic recording and audit-proof storage of all time data ensures compliance with all legal requirements and protects against legal risks. The elimination of manual recording and transfer steps saves valuable working time and reduces sources of error. The HR department is relieved and can focus on strategic tasks. With Workforce planning in the event sector you can optimally combine efficiency and flexibility.

Both managers and employees benefit from the ability to view current time data at any time. This fosters mutual trust and minimizes conflicts. Our solution grows with your company and flexibly adapts to changing requirements. From a small branch to an international corporation — the functionality remains intact. HR software at large-scale events leverages the cloud as a game-changer, enabling maximum flexibility. Avoiding errors in time tracking and the resulting payroll saves not only direct costs but also effort for subsequent corrections and potential legal disputes.

In addition to traditional employment relationships, the event sector features diverse employment models for which our solution offers specific functions. For the deployment of Working students in event management we offer optimal staff management for large-scale events. For Temporary staffing at large-scale events we support you with flexible staff management for your event success. Short-term employment at eventsrequires legally compliant and efficient workforce deployment processes, which our system supports. For Fixed-term employment contracts in event management we offer specific solutions that address the particular opportunities and challenges. Freelancers in event management can be integrated into your processes in a legally compliant manner.

Accurate time tracking is not only a legal requirement but also forms the foundation for fair employment relationships and efficient HR processes. Digital solutions like our time tracking software offer decisive advantages over conventional methods and minimize the risk of errors and legal consequences. With Workforce requirements planning for events we help you master the staffing challenges in the event sector and achieve optimal results through efficient Shift models for successful workforce planning at large-scale events optimal results to achieve.

For a comprehensively legally compliant and efficient event organization, we also recommend using our solutions for Reliability checks (ZVÜ) at large-scale events as well as Accreditation at large-scale events as the key to efficient access management. Additionally, we offer Digital personnel files in event management for efficient administration and an optimized Applicant management in event management for successful talent acquisition. Additionally, benefit from the Successful staff management at events: The power of the team referral network for a sustainable HR strategy.

Disclaimer: The contents of this article are for informational purposes only and do not constitute legal advice. For individual legal questions, please consult a lawyer specializing in employment law.