Industry Leaders Concerned European Court’s Mandating of ‘Time Clock’ Adding Red Tape to Modern Workforce

Employers concerned that 'more red tape' decreases competitiveness

A vendor sells apples in Berlin, Germany, in a file photo. The European Court of Justice has ruled that all employers must set up a system to record hours worked by staff. Tobias Schwarz/AFP/Getty Images

BRUSSELS—Europe’s top court has ordered companies across the continent to start logging every hour their employees work in a crackdown on overtime and flexible working that has dismayed business leaders.

The European Court of Justice ruled that all employers must set up “an objective, reliable, and accessible system” for recording hours worked by staff following a legal challenge from a Spanish trade union.