Timekeeping

Timekeeping refers to the systematic recording, monitoring, and management of employees’ working hours, including data such as attendance, absences, overtime, shortfall hours, vacation, and remaining leave entitlements (see vacation). This data is captured and processed using electronic time recording systems that apply predefined company rules regarding working time (e.g., flextime, core hours, breaks) and pay premiums (e.g., for overtime, night shifts, or Sunday work).

Functions and Benefits

Modern time recording systems—evolved from traditional time clocks—automatically log employee work data such as:

• Clock-in and clock-out times

• Break durations (see work breaks)

• Training hours

• Vacation periods

• Absenteeism and overtime

These systems provide transparency for both employers and employees. Workers can monitor their remaining vacation, accumulated overtime, and working hours, giving them greater autonomy in determining their start and end times within agreed boundaries.

Some companies have implemented trust-based working time models, where employees are responsible for managing their working hours without automated tracking, based on contractual obligations or target agreements.

Time Accounts and Credits

Work performed beyond agreed hours accumulates in time credits, stored in time accounts. These accounts enable long-term flexibility, allowing employees to:

• Take time off

• Retire early (see retirement)

• Receive overtime compensation

A well-known example is Volkswagen’s lifetime working time account, which allows employees to accumulate excess hours and retire up to two years earlier. The system supports fluctuations of up to ±400 hours, with bonuses only paid when the average workweek exceeds 40 hours. In some cases, time credits can even bear interest or be traded.

Conversely, time debts arise when employees fall short of their contractual working hours. The time balance reflects the net difference—either positive (credit) or negative (debt). Employers typically define acceptable limits for these balances.

Time Management and Avoiding Time Traps

When employees face repetitive tasks or lack delegation skills, they risk falling into time traps—inefficient use of work hours that can lead to burnout. Implementing effective time management strategies can help prevent these pitfalls, enhance productivity, and improve work-life balance.