Is your company still managing time reports manually or in spreadsheets? In that case, it might be time to reconsider. According to EU regulations, employers must have a system in place to track working hours, and in Denmark, new legislation on this matter is on the horizon. Here's a breakdown of the new law on time reporting.
Digital time reporting is already a seamless part of daily operations for many companies – not surprising considering the benefits it brings to businesses and employees. But did you know that EU regulations already state that employers must have a system for time reporting? And that these rules are now on the verge of being incorporated into the national legislation of member countries? In fact, this is already becoming a reality in Denmark. The Danish Parliament, Folketinget, recently approved a new law on time reporting. We'll delve into what this entails shortly. But first, let's review how it all started.
Read more: Discover the advantages of digital time reporting.
What's the background of the new law on time reporting?
To understand the new law, we need to go back to 2019 and a ruling from the Court of Justice of the European Union (article in Swedish). The case involved a Spanish trade union accusing Deutsche Bank of violating EU working time directives because the bank lacked a system to keep track of employees' working hours. The EU Court ruled that all employees in member countries must be able to assert their right to maximum working hours and rest periods according to the Working Time Directive. A prerequisite for this is the existence of a time registration system. These are the rules that Denmark (and other EU member countries) is now obligated to implement in its national legislation.
What's the purpose of these rules?
To ensure transparency and fairness in the workplace – in short, that's the goal of the new EU regulations and the upcoming law on time reporting. By tightening the rules, the aim is to protect employees' health and counteract unhealthy workloads. Companies bear greater responsibility for maintaining good working conditions and documenting that working hours and compensation are handled in a fair and transparent manner.
What does this mean for me as an employer?
So, what does this mean in concrete terms? In essence, the EU rules (upon which the Danish law is based) impose the following requirements on member countries:
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All employees should be able to assert their right to maximum weekly working hours (the 48-hour rule), consecutive daily rest (the 11-hour rule), and at least one day off per week.
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The company must implement a time registration system that is objective, reliable, and easily accessible, recording employees' actual daily working hours.
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Employees should have access to the recorded data, and the employer is obliged to retain this information for five years.
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The time reporting system used by the company must be available for inspections by authorities.
Note that the rules regarding working hours and rest periods (the first item in the list above) are not new; they are part of the EU's Working Time Directive, which has been in place since 2003. What changes with the new rules is that it will be easier verifying compliance with workplace regulations.
When does the law on time reporting take effect, and which countries are affected?
The proposed law pertains to Denmark and was adopted by the Danish Parliament on January 23, 2024. If all goes according to plan, the new law on time reporting is expected to come into force in the country on July 1, 2024. It's worth noting that these changes are not unique to Denmark, and similar legislation can be anticipated in other EU countries, including the Nordic neighboring countries. In other words, it's a good idea for all employers within the EU to stay informed about developments and devise a plan for how their companies can meet the heightened requirements.
Comply with the law on time reporting with a digital reporting system – and unlock simultaneous benefits
The developments regarding Danish legislation strongly indicate that companies still relying on paper, pen, or spreadsheets for time reporting have every reason to switch to a reliable digital solution. Not only does a modern time reporting system help companies comply with legal requirements and avoid legal repercussions, but it also contributes to saving time, reducing the risk of errors, and simplifying the work for the payroll department. Moreover, having a clear overview of your working hours and projects boosts both profitability and the well-being of your staff – a clear win-win.
Read more: Choosing a time reporting system – our top tips.
Ready for more efficient and secure time reporting?
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