glossary Legal & Regulatory stage 2

Time Tracking Compliance

Time tracking compliance refers to the legal obligations around recording employee working hours — covering the UK Working Time Regulations, the EU Working Time Directive, and the US FLSA requirements. Non-compliance can result in employment tribunal claims, regulatory penalties, and unpaid wage liability.

complianceFLSAWorking Time Directivelegalemployment law

RELATED CONCEPTS

UK Working Time Regulations (WTR)

The UK Working Time Regulations 1998 require employers to:

Record-keeping obligation: Employers must keep adequate records showing compliance for 2 years. “Adequate” is not defined precisely in the regulations — but a contemporaneous time record (timesheet or electronic log) is the defensible standard. Reconstructed records are less defensible in an employment tribunal.

Health and safety sectors: For some sectors (road transport, aviation, junior doctors), specific working time limits and record-keeping requirements are stricter than the general WTR.

EU Working Time Directive

The EU Working Time Directive (2003/88/EC) sets similar requirements across EU member states. In May 2019, the European Court of Justice ruled that employers must implement an “objective, reliable and accessible system” for recording daily working time for all workers.

The ECJ ruling is more explicit than UK guidance on the requirement for time recording systems. EU member states have been implementing this requirement at different speeds. For UK employers post-Brexit, the ECJ ruling doesn’t directly apply, but the underlying WTR obligations remain.

US FLSA requirements

The Fair Labor Standards Act requires employers to:

The FLSA does not specify the method of record-keeping — paper, electronic, or any other form is acceptable. The records must be accurate and available for inspection.

State requirements vary: California requires daily overtime records (after 8 hours in a day), which means time tracking must capture daily hours, not just weekly totals.

What “adequate” time tracking looks like for compliance

For most employers in the UK and US, a compliant time tracking system needs to:

  1. Record start and end times (or total hours) per working day, per employee
  2. Be contemporaneous — recorded at or near the time of work, not reconstructed weeks later
  3. Be retained for the required period (2 years UK WTR, 3 years US FLSA)
  4. Be available for inspection by relevant authorities

Toggl Track, Clockify, Harvest, and Hubstaff all meet these requirements when configured for daily time capture. Screenshot monitoring (Hubstaff) goes beyond what compliance requires for most employers — it’s a management choice, not a legal obligation.

GDPR and employee monitoring

For UK and EU employers using monitoring-capable tools (Hubstaff, Time Doctor), GDPR and UK GDPR require:

Screenshot monitoring without employee disclosure violates UK GDPR and is grounds for an employment tribunal claim. Disclose monitoring in writing (employment contract or monitoring policy) before enabling any surveillance features.