How to Track Employee Hours Legally in the UK
Under UK law, employers are required to keep adequate records of workers' hours to demonstrate compliance with the Working Time Regulations 1998 and the National Minimum Wage Act 1998. Failing to do so can result in HMRC investigations, financial penalties, and employment tribunal claims.
What the Law Requires
The Working Time Regulations 1998 state that workers must not work more than 48 hours per week on average (unless they have opted out in writing). Employers must keep records adequate to show this limit is being respected.
The National Minimum Wage Act requires employers to keep wage records for at least 3 years — and time records are an essential part of proving minimum wage compliance.
What Records Do You Need to Keep?
At minimum, you should record:
- Hours worked per day or per week
- Start and end times (for shift workers)
- Any overtime worked
- Rest breaks (if applicable to the employment contract)
- Any opt-out agreements for the 48-hour limit
Methods for Tracking Hours
Manual Timesheets
The most basic approach — employees fill in a paper or spreadsheet timesheet. Works for small teams but prone to errors and difficult to audit.
Clock-In Systems
Physical punch cards or key fob systems. More accurate but expensive to set up and maintain.
Time Tracking Software and Apps
The most practical solution for modern businesses. Employees log their time digitally, managers can review and approve, and reports are generated automatically.
HonestHours is a free Chrome extension that makes time tracking simple for small businesses and freelancers. It runs in your browser, requires no setup, and keeps records in a format you can export at any time.
Remote and Hybrid Workers
For remote teams, manual timesheets are particularly unreliable. Browser-based tracking tools like HonestHours are well suited to remote and hybrid environments — they work wherever the employee is working without requiring any specialist hardware.
How Long Do You Need to Keep Records?
- Working Time records: No specific retention period stated, but generally 2 years as a minimum
- National Minimum Wage records: At least 3 years
- Payroll records (HMRC): At least 3 years after the end of the tax year
Consequences of Not Keeping Records
- HMRC can issue a National Minimum Wage penalty of up to 200% of underpayment per worker
- Employment tribunals can draw adverse inferences from missing records
- Workers can claim unlawful deduction from wages more easily when records are absent
Get Started with HonestHours
HonestHours is a free Chrome extension for small businesses and freelancers. Track time accurately, generate reports, and stay compliant — without complexity.
Install free at honesthours.io.
Frequently Asked Questions
Are employers legally required to track hours in the UK?
Yes. Under the Working Time Regulations 1998 and National Minimum Wage Act 1998, employers must keep adequate records of working hours. The specific detail required depends on the nature of employment.
Can employees track their own hours?
Yes, but self-reported timesheets must be reviewed and approved by a manager to be reliable. A time tracking tool with manager approval workflow is more defensible in a dispute.
Do I need to track hours for salaried employees?
Yes, if you want to demonstrate Working Time Regulations compliance. Even for salaried workers, you need to be able to show they are not regularly exceeding the 48-hour average.
What is the best free time tracking tool for small businesses in the UK?
HonestHours is a free Chrome extension designed for small businesses and freelancers. It requires no subscription and runs directly in your browser. Install it at honesthours.io.
Track time free — no subscription
HonestHours is a free Chrome extension for small businesses and freelancers.
Install Free →