What is a time clock badge system?

Published on
November 27, 2023
What is a time clock badge system?

A time clock badge system is one of the most commonly used tools for tracking working hours in companies. Reliable, easy to install, and simple to use, this system offers multiple advantages. Here’s a full explanation of what it is, how its use is legally regulated, and why it’s an effective option for employee time tracking.

Time clock badge system: definition

A time clock badge system records employee arrivals and departures at the workplace. It allows employers to calculate the actual working time for each worker. This system can rely on different technologies, such as RFID badges, fingerprints, or biometric scanners for enhanced security and accuracy.

The system consists of several parts. Each employee receives a badge, which they scan at the terminal when arriving and leaving the workplace. The terminal records the data and transfers it to a management software, which handles time tracking and work hour reporting.

Depending on company policy, the system can also track lunch breaks or short pauses during the day, not just the start and end of shifts. Some companies opt for biometric time clocks using fingerprints to prevent misuse and improve accuracy.

Legal requirements for time clock systems

Employers are legally required to track and record actual working hours for all employees, regardless of their contract type or number of working hours. The labour code does not mandate a specific tracking method, so companies can choose between:

  • Paper timesheets
  • Mechanical punch clocks
  • Mobile apps
  • Time clock badge systems

However, biometric tracking, such as facial recognition, is generally prohibited when used solely for tracking hours. According to the CNIL (France’s data protection authority), these methods are seen as disproportionate for time tracking purposes.

If you choose a time clock badge system, you must comply with legal requirements, including:

  • Using a reliable, tamper-proof system.
  • Identifying employees using badges, not sensitive biometric data.
  • Ensuring data is accessible to labour inspectors if requested.
  • Allowing employees to view their own time tracking records.

In 2019, the European Court of Justice ruled that companies must implement reliable working time tracking systems to ensure compliance with working hour laws. This ruling highlights the importance of having a robust, reliable time clock system.

Advantages of using a time clock badge system

Time clock badge systems offer multiple benefits for both employers and employees:

  • Accurate data collection: Arrival and departure times are automatically recorded, significantly reducing errors compared to manual reporting.
  • Reliable work hour records: HR teams receive precise data for payroll processing and compliance audits.
  • Overtime tracking: Calculating overtime or compensatory rest becomes much easier.
  • Reduced disputes: The recorded data serves as official proof in case of disagreements between employees and employers.

Even if errors happen (e.g., forgetting to clock in), these situations remain exceptional. Employees who fail to clock in must prove their presence if disputes arise.

Many companies also combine time clocks with absence management tools, allowing employees to submit leave requests directly through the system. This ensures schedules remain accurate, even when staff are absent.

How to install a time clock badge system

Choosing the right time clock system depends on several factors:

  • Company size
  • Number of employees
  • Working hours structure (fixed shifts, flexible hours)
  • Budget

Once you’ve selected the system, you need to:

  • Consult employee representatives (CSE in France) before installation.
  • Notify employees in advance, explaining how the system works and why it’s being introduced.

The terminal should be placed at a main entry point for easy access. For off-site employees (such as field workers), mobile clock-in options can complement the main system.

Finally, training staff on how to use the system ensures a smooth rollout. Technologies like RFID badges or smartphone apps can simplify identification and help reduce missed clock-ins.