Time recording in the dental practice: a practical guide

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Time recording in the dental practice: a practical guide

The systematic recording of working hours is also a legal obligation for dental practices and a strategic tool for modern practice management. Recent landmark rulings have created a new legal reality that requires practice owners to take immediate and informed action. Many practice owners initially see this as just another bureaucratic burden. However, this guide shows that time recording is far more than just complying with a regulation.

TL;DR: the most important information summarized

• Due to court rulings, the complete recording of the start, end and duration of daily working hours, including all breaks, is now legally mandatory for all employees in dental practices.
• The greatest risk in the event of a lack of recording is not fines, but the reversal of the burden of proof in the event of overtime claims, which can lead to considerable back pay.
• Although manual lists are still permitted, digital, tamper-proof systems are strongly recommended as they meet the judicial requirement for an “objective and reliable” system.
• The responsibility for setting up and monitoring a functioning system always lies with the practice owner, even if the daily recording is delegated to the employees.
• Correctly implemented time recording creates legal certainty, promotes transparency and fairness within the team and protects employees from overwork.

The daily operation of a dental practice is characterized by many different activities. Appointments have to be organized, patients treated and the treatment rooms kept clean.

By law, the working hours of the various employees must be fully recorded. The obligation to record working hours applies to all employees in Germany. This also includes staff in dental practices.

Legal basis

The obligation to record working time is the result of a series of legal decisions at European and national level that have fundamentally changed the rules of the game for all employers in Germany.

On May 14, 2019, the ECJ ruled (Case 55/18 CCOO) that EU member states must oblige their employers to set up an “objective, reliable and accessible system” for measuring daily working time. The primary aim of this requirement was to protect workers’ rights, in particular effective compliance with the statutory maximum working and rest times, which would be impossible to verify without accurate measurement.

For Germany, the decisive step followed on September 13, 2022 with a ruling by the Federal Labor Court (Ref. 1 ABR 22/21). The BAG clarified that the obligation to comprehensively record working hours already applies directly in Germany.

The judges argued that compliance with working time limits is an essential part of employee health protection. Accordingly, the employer’s duty to ensure that occupational health and safety is suitably organized also necessarily includes setting up a system for recording working hours.

Employers and therefore also practice owners cannot wait for a future change in the law, but must act immediately.

The new legal basis: Section 3 of the Occupational Health and Safety Act (ArbSchG)

Previously, Section 16 of the Working Hours Act (ArbZG) only explicitly required the recording of working time in excess of eight hours per working day and all working time on Sundays and public holidays. According to the new case law, this regulation is inadequate. The all-encompassing obligation to record all working time – i.e. the start, end and exact duration including all breaks – is now derived directly from Section 3 (2) No. 1 of the Occupational Health and Safety Act.

For everyday practice work, this means that every minute of work from the set-up time in the morning (e.g. booting up the computer) to tidying up the treatment rooms in the evening must be fully documented. Blanket statements such as “8 hours worked” are therefore inadmissible and legally untenable.

Consequences of violations: more than just fines

The risks of failing to comply with the time recording obligation are manifold and go far beyond possible fines.

A direct violation of the general organizational obligation under Section 3 ArbSchG is not initially subject to a fine. Such a fine of up to €30,000 is only threatened if a competent supervisory authority such as the trade supervisory office formally orders the introduction of a time recording system and the practice does not comply with this order.

However, the most serious risk lies in civil law, especially in disputes over unpaid overtime. Normally, the burden of proof for overtime worked lies with the employee. However, without his own system-compliant data, the practice owner can hardly counter the claims and risks having to pay expensive back wages; not because the overtime was necessarily worked, but because the legally required instrument for proof is missing.

Advantages: Why time recording is worthwhile for dental practices

A suitable time recording system effectively protects the practice from fines, claims for back pay and disputes with the supervisory authorities.

Accurate and comprehensible recording of working hours, break times and overtime also creates a fair basis for payroll accounting. This strengthens trust within the team, prevents misunderstandings and conflicts and promotes a positive working atmosphere.

Systematic monitoring also ensures that statutory break and rest times are observed. This actively protects employees from overwork and contributes to the long-term preservation of their health and working capacity.

The data obtained enables better and needs-based staff deployment planning. Inefficiencies in practice processes can be identified and optimized in a targeted manner, which can lead to smoother processes and a better patient experience.

Time recording provides a valid data basis for practice costing. It helps to determine the actual personnel expenditure for certain treatments or administrative processes and to better manage the profitability of the practice.

Methods and systems: Finding the right solution for your practice

The courts stipulate that working hours must be recorded, but leave room for maneuver as to how. Practice owners must choose a method that is not only legally compliant, but also practicable and future-proof.

In principle, various forms of time recording are conceivable, but they differ considerably in terms of efficiency, security and legal compliance.

• Manual recording (timesheets): This method has the lowest acquisition costs and requires no technical knowledge. However, the disadvantages are serious: a high administrative effort for personnel administration, a high susceptibility to errors during entry and evaluation, easy manipulation and an impractical process for the legally required two-year archiving.
• Excel spreadsheets: The costs are low if an Office license is already available. However, like the timesheet, Excel is also susceptible to manipulation and input errors. There are no automated controls and compliance with data protection regulations is difficult to ensure.
• Stationary terminals (digital time clock): These systems offer a high level of protection against forgery and simple operation via chip, card or PIN code. However, they are associated with acquisition costs for hardware and software and are purely location-based. This makes them inflexible if employees perform administrative tasks (e.g. billing, practice management) in their home office.
• Digital software (cloud/app): This is the most modern, flexible and future-proof method. Time recording software such as Papershift enables mobile recording via smartphone, automates the calculation of working and break times, manages overtime accounts and often offers additional functions such as vacation and shift planning. Interfaces to payroll accounting programs (e.g. DATEV), which drastically reduce the administrative workload, are crucial.

Although manual methods such as timesheets or Excel spreadsheets are not yet explicitly prohibited by law, they contradict the judicial requirement for an objective, reliable and accessible system.

It can be assumed that the legislator will stipulate the obligation to record working hours electronically. This is provided for in the draft legislation of the last federal government

Selection criteria for practice owners

The choice of the right system depends on the individual circumstances of the practice.

A small practice with fewer than 10 employees has different requirements than a large group practice or an MVZ. The federal government’s coalition agreement provides for transitional solutions for small and medium-sized enterprises, but no exemption from the obligation to record data per se.

The system must be able to flexibly map the models used in practice, be it full-time, various part-time variants, mini-jobs or flexitime arrangements.

Cloud-based solutions are advantageous because they do not require a dedicated server in the practice and maintenance is handled by the provider. The costs are usually calculated per employee and month, which makes it easy to plan.

Practice owners should consider whether they only need pure time recording or whether integrated modules for vacation and shift planning could simplify the practice workflow. An interface to the tax consultant’s payroll accounting system (very often DATEV in Germany) is a decisive criterion for increasing efficiency.

The software provider must provide a data processing agreement (DPA) and ideally guarantee that the data is stored on servers within the EU.

Special requirements in the dental practice

The general rules for time recording must be applied to the specific day-to-day practice. This often raises questions in gray areas that need to be clearly defined.

What is working time? The gray areas in everyday practice

The recorded working time begins with the start of work and ends with its completion. This also includes activities that do not take place directly on the patient.

• Set-up times: Starting up the practice computers in the morning, activating the telephone system, preparing the treatment units and putting on the prescribed protective clothing are necessary activities for starting work and therefore count as working time.
• Team meetings: Daily morning meetings before the official start of consultation hours to coordinate the daily routine are also working time.
• Internal training courses: Training courses arranged by the practice owner, for example on new hygiene standards, new practice software or how to use the X-ray machine, are working time.
• Business trips: While the journey from home to the practice and back is generally not working time, business trips during the working day – such as going to the dental laboratory or pharmacy – count as working time.
• On-call duty vs. on-call duty: If a practice offers on-call duty where employees have to be in the practice in order to be available immediately if required, this time must be counted in full as working time. In the case of pure on-call duty, where only telephone availability must be ensured, only the actual work assignment (including arrival and departure) counts as working time.

Working time models and special cases in practice

The time recording obligation applies to all employees, although special features must be observed for certain groups.

• Part-time and mini-jobs: The obligation to record time without gaps applies without restriction. Precise documentation is essential, especially for mini-jobbers, in order to avoid unintentionally exceeding the marginal earnings threshold and to rule out subsequent claims by social insurance providers.
• Apprentices (ZFA): The stricter regulations of the Youth Employment Protection Act (JArbSchG) regarding working hours, breaks and rest periods apply to young trainees. The teaching time at the vocational school, including breaks, must be included in the weekly working hours.
• Salaried dentists: As a rule, they are subject to the Working Hours Act and the associated recording obligation like all other employees. The only exception is for executive employees within the meaning of Section 5 (3) BetrVG who are authorized to hire and fire staff independently. This constellation is extremely rare in an average dental practice.
• Overtime: Every minute worked over and above the contractually agreed working hours must be recorded. A flat-rate compensation of overtime with the salary is legally only possible to a very limited extent, usually only for higher earners above the contribution assessment ceiling. For other employees, it is advisable to have a clear provision in the employment contract that stipulates, for example, that a certain small number of overtime hours (e.g. up to 10 per month) are compensated with the salary.

Practical example: A typical practice day in the time recording system

• Dental administrative assistant (ZMV): Arrives at 7:30 a.m., clocks in (set-up time: start up PC, activate telephone system). Takes a lunch break from 12:30 to 13:00 (clocks out and back in). Leaves at 16:00 (clocks out).
• Dental assistant (ZFA): Arrives at 7:45 am, clocks in (set-up time: prepare treatment room). The team meeting from 7:50 to 8:00 a.m. is recorded working time. Takes a lunch break from 13:00 to 13:45. Stays until 17:15 in the evening to prepare instruments for the next day, which results in 15 minutes overtime. Clocks out at 17:15.
• Practice owner: Arrives at 8:00 am. He/she does not have to record any time for him/herself, but is responsible for the correct recording of all employees.

Data protection: the secure handling of sensitive time data

Working time data is personal data and is subject to the strict rules of the General Data Protection Regulation (GDPR). Careful handling of the data is therefore essential.

Advantages: Why time recording is worthwhile for dental practices

A suitable time recording system effectively protects the practice from fines, claims for back pay and disputes with the supervisory authorities.

Accurate and comprehensible recording of working hours, break times and overtime also creates a fair basis for payroll accounting. This strengthens trust within the team, prevents misunderstandings and conflicts and promotes a positive working atmosphere.

Systematic monitoring also ensures that statutory break and rest times are observed. This actively protects employees from overwork and contributes to the long-term preservation of their health and working capacity.

The data obtained enables better and needs-based staff deployment planning. Inefficiencies in practice processes can be identified and optimized in a targeted manner, which can lead to smoother processes and a better patient experience.

Time recording provides a valid data basis for practice costing. It helps to determine the actual personnel expenditure for certain treatments or administrative processes and to better manage the profitability of the practice.

Step-by-step: Successfully introducing time recording in your practice

A structured approach is the key to a smooth and successful introduction of a new time recording system. A multi-phase approach is recommended.

Phase 1: Analysis & planning (week 1)

1. Define your goals: Determine what you want to achieve: pure legal compliance, more efficiency in payroll, better shift planning?
2. Define requirements: Use the above criteria to select the right time recording system in order to create a detailed requirements profile (practice size, working time models, interfaces, etc.).
3. Define budget: Calculate both possible one-off acquisition costs (for hardware) and ongoing monthly license fees.
4. Designate the person responsible: Designate a person in the team (e.g. the practice manager or an experienced ZMV) to manage the project.

Phase 2: System selection & setup (week 2-3)

1. Research providers: Compare different providers based on your requirements profile
2. Use test phases: Select 2-3 favorites and use their free test phases to try out the software in everyday practice.
3. Make a decision: Choose the system that best suits your practice. Conclude the contract and the mandatory data processing agreement (DPA).
4. Configure the system: Set up the basic system. Create all employees and store their individual working time models and target hours.

Phase 3: Rules & communication (week 4)

1. Create guidelines: Define clear and written rules for using the system. What happens if bookings are forgotten? How and by whom is overtime approved? How are breaks recorded?
2. Inform the team: Schedule a team meeting. Communicate openly and transparently about the background (legal obligation), the choice of system and, above all, the benefits for the entire team. Emphasize the aspect of employee protection and fairness in order to dispel any concerns about “monitoring” from the outset.

Phase 4: Training & test run (week 5)

1. Train employees: Conduct hands-on training for all employees. Demonstrate exactly how clocking in and out and break booking work. Provide brief written instructions.
2. Start the pilot phase: Carry out a test run for a week, ideally with the old and new systems running in parallel. Actively collect feedback, identify sources of error and clarify open questions.

Phase 5: Official launch & optimization (from week 6)

1. Go-live: Communicate the official start date from which only the new system will be used.
2. Plausibility checks: In the first few weeks, regularly check the recorded data for correctness and completeness to ensure correct use.
3. Obtain feedback: After one to two months, ask again about the team’s experiences and adjust processes or system settings if necessary.

Checklist for the introduction of time recording

This checklist summarizes the most important steps for practical implementation and can serve as a project plan.

 Planning & Analysis

•  Goals and requirements for the system are defined.
• Budget (one-off/ongoing) is defined.
• A project manager has been appointed in the team.

Selection & contract

• At least two providers were compared and tested.
• Final decision has been made.
• Contract and data processing agreement (DPA) have been reviewed and signed.

Rules & communication

• An internal guideline (dealing with breaks, overtime, corrections) has been drawn up.
• The entire practice team has been informed transparently about the why, what and how.

Technical equipment

• The system has a basic configuration (working time models, target hours).
• All employees have been created with user accounts.

 Training & test

• All employees received practical training in the new system.
• Brief written instructions were distributed.
• A one-week pilot phase was carried out and the feedback evaluated.

Official launch

• The official start date has been clearly communicated to everyone.
• Regular data checks are planned during the initial phase.

FAQs: The 5 most important questions for practice owners

Do I really have to record working time from the first minute?

Yes, case law requires the recording of the entire time actually worked. This also includes preparatory activities (set-up times) such as starting up the PC or preparing a treatment room.

Is trust-based working time now completely prohibited?

No, trust-based working time as a culture of flexible working arrangements is still possible. However, there is still an obligation to record the hours worked in order to be able to prove compliance with the statutory maximum working hours and rest periods.

Can I delegate the task of time recording completely to my employees?

Yes, the daily recording of time can and should be delegated to the employees. However, the overall legal responsibility for setting up a functioning system and randomly checking that it is being used correctly always remains with you as the employer.

Is a simple Excel spreadsheet sufficient?

Although the form of recording is not strictly prescribed, an Excel spreadsheet hardly meets the judicial requirements for an “objective, reliable and accessible” system. It is susceptible to manipulation, prone to errors and administratively complex, which is why experts urgently recommend professional digital solutions.

What happens if an employee forgets to clock in or out?

Define a clear, internal process for subsequent corrections that is documented in a traceable manner. Modern digital systems usually offer a function for this, where employees can request a correction, which must be checked and approved by the practice management.