Powered by Smartsupp
Labour inspection

Electronic time recording and PIP - rules and regulations

The State Labour Inspectorate is the authority empowered to inspect companies that employ workers. Among other things, it can take action on employee documentation, including the time records of each employee. Our article will provide you with all the necessary information in this regard.

Table of contents

What does the State Labour Inspectorate do?

State Labour Inspectorate
It is a body established as early as 1919. It is responsible for controlling compliance with labour law by entrepreneurs who employ workers. The tasks of the labour inspectors include initiating inspections when there are reasonable indications of activity that does not comply with the applicable legislation, and then establishing the facts on the basis of the documents submitted and possibly imposing penalties.

State Labour Inspectorate works on the basis of the Labour Code and the State Labour Inspection Act. In the course of its activities, it is also guided by a number of other pieces of legislation, which relates, for example, to the regulation on employee records.

Recommended entry: Archiving of accounting records - proper filing of documents

Control of employee time record keeping

The primary duties of labour inspectors are to undertake inspections in the field of time recording. They may verify all documentation relating to employees, as well as the way it is stored or timeliness and compliance with the law. This includes, for example, issues relating to start and end times or working on Sundays or public holidays.

Control of time accounting and payment of wages to employees

Each labour inspectorate is entitled to check the accounting of employees' working time and the remuneration received in connection with it. The check may be subject to the amount of both the basic salary and certain allowances, including for overtime.

Control in relation to health and safety at work or legality of employment

Every employer must ensure adequate health and safety conditions in his company. The issues related to this are also the responsibility of labour inspectors. This serves to prevent occupational diseases or accidents at work. Equally important is the control of the legality of employment, i.e., for example, whether an employee has bound himself or herself to the workplace with a contract as stipulated in the Labour Code.

What should proper time recording look like?

Financial and accounting system and time management with Nicesoft

Time tracking software from Nicesfot

.According to the Labour Code, every employer is obliged to keep working time records. Its purpose is to correctly determine remuneration and other benefits arising from the employment relationship (e.g. allowances for overtime, night shifts, on-call duties, holidays, etc.).

  • Time records should be kept separately for each employee and include, inter alia:
  • the number of hours worked (including overtime),
  • starting and finishing times,
  • public holidays,
  • annual and special leave,
  • sick leave,
  • night-time working hours,
  • on-call staff,
  • secondments and other excused absences.

Lack of or inaccurate working time records can result in serious financial consequences in the event of an inspection by the State Labour Inspectorate (PIP). Importantly - an inspection can be carried out at any time, so it is worth ensuring order and compliance on an ongoing basis.

What might be the method of time recording adopted by the company?

Monitoring of working time - scheduling
Do you need a system to monitor employees and machines? Contact us! 
telephone: +48 12 446 69 15
email: biuro@nicesoft.pl


A time sheet may be kept on paper or electronic. We strongly recommend the latter solution, as it involves:

  • considerable time savings - employees do not have to waste time filling in their cards every time they enter or leave the company premises, as they can authenticate using readers at the door;
  • reducing paper circulation, which is important for both economic and environmental reasons;
  • great convenience - access to employee documents is possible from any location with internet access.

The employer has to keep personnel files separately for each employee, so at some point there may be a problem with storing them. With an electronic archive, such a problem will not occur.

You may be interested in: Electronic time recording - what is the best programme?

How long should working time records be kept?

As a general rule, time accounting records should be kept for 50 years from the moment the employee terminates his or her employment at that location. However, if the employee's employment contract was signed with him/her in 2019 or later, the time shall be 10 years.

Theoretically, therefore, during this period, the labour inspector can inspect the records, wages and other work-related benefits that you are required by law to produce and store in a safe place. In practice However, employees of the State Labour Inspectorate inspect the file over the last 3 years. This is due to the fact that claims from the employment relationship become time-barred precisely after this period.

What documents must be kept in the event of an inspection by a labour inspector?

Contracts and documents
To effectively account for your employees' working time, you should collect and record various data related to it. They concern:

  • the number of hours worked, including night work - it is necessary to have precise data on the start and end time of on-call duty on each day in case of an inspection;
  • overtime;
  • public holidays;
  • the nature and extent of exemptions from work, as well as any other excused or unexcused absences from work.

Time and attendance records must contain all the records required by law. If there are any deficiencies in it, you can expose yourself to unpleasant consequences. That is why working time records on matters relating to the employment relationship, including the data indicated, should be kept up-to-date and accurate. This will ensure that no inaccuracies arise within it.

What are the principles of PIP control in relation to labour legislation?

An audit of your working hours can affect you at any time, so it is worth preparing for it in advance. Below, we describe what the rules of such an audit are and when you may be confronted with it.

In what situations and who can the labour inspector inspect?

Time recording documents may be audited as a result of routine action by the State Labour Inspectorate or a complaint by one or more employees. The important thing is that you may or may not be informed of such an inspection - it may be undertaken unannounced, without notice. It is therefore worth acting in such a way that it does not come as a surprise to you.

Time recording is the responsibility of the of each employer. So if you employ even just one employee, you can expect a visit from the labour inspector. It does not matter under which employment relationship the persons in question are working for you - it may be both an employment contract and a civil law contract (commission, contract to perform a specific task). The inspection may also cover companies that are expected to comply with work organisation rules related to Sunday trading restrictions.

How long and where can an inspection by the State Labour Inspectorate be carried out?

An audit of working time records to check that everything is being done in accordance with current legislation can take a strictly limited period of time. It depends on how many employees you employ. It rises to a maximum:

  • 12 working days for micro-entrepreneurs, i.e. entities with no more than nine employees;
  • 18 working days for small entrepreneurs with a maximum of 49 employees;
  • 24 working days - other entrepreneurs.

An inspection by the State Labour Inspectorate can be carried out in workplace. You must make available to the inspectors all premises where you keep documents on working time schedules and employee records. Part of the action may also be taken at the district labour inspectorate.

What documentation can be inspected by the State Labour Inspectorate?

The State Labour Inspectorate may inspect attendance records all employees without exception, including those who are not in your company on a daily basis and who work with you under various contracts. Inspectors can review not only your personnel file, but also your company's manuals, regulations and working time procedures, and even decisions of other authorities, including the Social Security Administration.

How to prepare for an inspection regarding electronic time recording? PIP electronic time recording

Electronic documents
As such an inspection may be unannounced, pay particular attention at all times to keeping accurate and reliable working time records. Organise employee files and provide easy access to them for those responsible for HR and accounting matters. This will ensure that you do not expose yourself to severe penalties, including a fine or a fine of up to £30,000.

Read also: Time management in the logistics department - do it effectively

 

Bibliography:

  1. Adamczyk K., Keeping records of working time - is it the employer's responsibility?, https://procesy-biznesowe.impel.pl/strefa-wiedzy/obsluga-kadrowo-placowa/prowadzenie-ewidencji-czasu-pracy-czy-to-jest-obowiazek-pracodawcy/.
  2. Bogucka K., PIP inspections reveal irregularities in recording working time, https://www.inforlex.pl/dok/tresc,FOB0000000000006767518,Kontrole-PIP-ujawniaja-nieprawidlowosci-w-ewidencjonowaniu-czasu-pracy.html.
  3. Ilnicka B., Working time records - don't be surprised by PIP inspections, https://poradnikprzedsiebiorcy.pl/-ewidencja-czasu-pracy-nie-daj-sie-zaskoczyc-kontroli-pip.
  4. Regulation of the Minister of Family, Labour and Social Policy of 10 December 2018 on employee documentation, https://isap.sejm.gov.pl/isap.nsf/DocDetails.xsp?id=WDU20180002369.
  5. Act of 26 June 1974 Labour Code, https://isap.sejm.gov.pl/isap.nsf/DocDetails.xsp?id=wdu19740240141.
  6. Act of 13 April 2007 on the State Labour Inspectorate, https://isap.sejm.gov.pl/isap.nsf/DocDetails.xsp?id=wdu20070890589.

Other entries