Time and attendance systems are one of the most crucial aspects you need in your business, not only does it save you time and money but it also improves workforce efficiency.
What is the 7-minute rule?
So what is the 7-minute rule and why is it so important to employees? The law requires that employers pay their workers for every hour they’re on the job – but it allows employers to use a certain amount of rounding when calculating the total amount of time worked. The “7-minute rule” applies in many rounding situations. In layman’s terms, employees do not track work time to the minute and only track work time every 5,10,15 minutes and then round the actual time worked. Now the 7-minute rule comes into play when a company pays employees based on 15-minute increments, the cut-off point for rounding down is 7 full minutes but less than 8 minutes, the company can round the number down to the nearest 15 minutes. If the employee works at least 8 full minutes, the employer must round up.
Time and attendance systems benefits the employers when it comes to the payroll process which is based on hours worked by the employee with a fully automated time and attendance terminal. This reduces administration time by removing manual timesheets and eliminating human error. The 7-minute rule is smoothly & quickly calculated when you analyze the automated time and attendance data alongside the employees worksheets to process the employees working hours. This process eliminates manual systems & therefore eliminates the human error.
We know there are many of our time and attendance options out there but just give us a call on 0203 808 1128, or email us at firstname.lastname@example.org and we will help simplify, and advise on what’s right for your business.