Time clock systems have become standard tools for companies of all sizes. Essential for tracking working hours, they are always linked to time tracking software or a dedicated app. Here’s everything you need to know about how they work, the different types available, and what to consider when choosing the right system for your business.
Regardless of your company’s size, tracking working hours is both a practical necessity and a legal requirement. According to labour laws, employers are responsible for recording and monitoring employee working hours. Each employee’s weekly or monthly hours are defined by their contract or a collective agreement.
To calculate actual working time, companies need accurate records of arrival and departure times. This is crucial for payroll processing, overtime tracking, and ensuring compliance with working time regulations.
Modern time clock systems provide reliable, automated data collection, simplifying HR processes and ensuring accurate payroll calculations.
All time clock systems, regardless of type, consist of three key components:
Each employee receives a badge storing personal data such as name, department, or employee number. Badges come in various forms: plastic cards, key fobs, or digital badges within mobile apps. Some systems use biometric methods instead of physical badges.
The time clock terminal records arrival and departure times. Installed at entry points like doors or reception areas, it contains an electronic clock and data reader to capture badge information.
The terminal transfers recorded data to a time tracking software. This can happen over Wi-Fi, Ethernet, or via USB transfer. The software compiles and presents the data, making it accessible to HR teams for payroll and compliance.
The process follows the same basic principle across all systems. Each employee identifies themselves using their badge or biometric data when starting and ending their shift. Depending on company policy, employees may also clock out for breaks or temporary absences.
The terminal records each clock-in/out and transmits the data to the time tracking software. This automated process provides accurate records for payroll teams, who can use the data directly when preparing payslips.
There are several types of time clocks available today, each suited to different work environments.
This is the oldest type. Employees insert a paper card into a machine that punches a timestamp when they arrive and leave. Manual data processing is required, making this system outdated for larger companies. It’s mainly used by very small businesses today.
With this system, employees use a badge with an RFID chip, which they scan at the terminal to record arrival and departure times. The data is transmitted automatically to time tracking software. This is one of the most common options today.
This virtual clocking system is ideal for remote workers or employees on the move. They clock in and out via a smartphone app, with data sent directly to time tracking software. This approach relies on trust, as employees could technically clock in from anywhere.
This system uses physical traits like fingerprints or facial recognition for identification. However, biometric time tracking is heavily regulated under GDPR and French data protection laws. In France, it’s prohibited for general time tracking and only allowed for securing access to sensitive areas, such as nuclear sites.
Before choosing a time clock system, employers should assess:
Once the right system is selected, employers must consult employee representatives before installation. The system must comply with labour laws and ensure transparent communication with employees. Staff should be informed well in advance about the new system, including how data is used and their rights under GDPR.
With the right system in place, businesses can improve payroll accuracy, reduce disputes, and ensure compliance with working time regulations.
