Why the Modern Workplace Needs Punch Clocks

All companies in the European Union will have to track their employees’ working hours: That was the ruling delivered by the EU’s top court Tuesday. At first sight, this appears to be a pointlessly cumbersome measure. But given the technology available today, it may actually be a good idea.

The European Court of Justice ruling is the result of a legal action by Spanish labor unions against the local subsidiary of Deutsche Bank. The lender said it was tracking only overtime, as required by Spanish Supreme Court rulings interpreting the local worker rights legislation. But the ECJ ruled in favor of the unions, supported in this case by Spain’s socialist government, saying the EU’s working-time directive required employers to keep exact track of workers’ hours, not just to calculate overtime but also to make sure they get the obligatory rest periods — at least 11 uninterrupted hours a day and at least 24 uninterrupted hours per week, as well as rest breaks after every six hours of work. The court told EU member states to require that all employers set up “objective, reliable and accessible” time-tracking systems.