UK employment law requires employers to maintain detailed records of working hours, pay, and leave for every employee. HMRC can investigate businesses at any time, and penalties for National Minimum Wage underpayment alone include fines of up to 200% of arrears owed plus public naming. TimeTally automates Working Time Directive monitoring, NMW verification, holiday entitlement tracking, and compliance alerts so you are always audit-ready.
UK employment law is complex and the consequences of non-compliance are severe. HMRC issued over 1,000 NMW penalty notices in a single year, and employment tribunal claims for WTR breaches can result in fines of up to £20,000 per offence. Reputational damage from public naming can be even more costly.
Working Time Directive violations lead to employment tribunal claims with fines up to £20,000 per breach. Under the Working Time Regulations 1998, employers must keep adequate records to demonstrate compliance for at least 2 years
Inaccurate hour tracking leads to National Minimum Wage underpayment. Under the National Minimum Wage Act 1998, HMRC can impose penalties of 200% of arrears (up to £20,000 per worker) and publicly name non-compliant employers
Manual holiday calculations are error-prone. Under UK law, all workers are entitled to 5.6 weeks of paid leave. Incorrect accrual — especially for part-time, irregular hours, and zero-hours workers using the 12.07% method — leads to compliance issues, back-pay claims, and tribunal disputes
Paper timesheets provide poor evidence for HMRC investigations or employment tribunals. HMRC requires employers to keep payroll records for at least 3 years and working time records for at least 2 years — digital records with timestamps are far more defensible
Under the Working Time Regulations, adult workers are entitled to an uninterrupted 20-minute rest break when working more than 6 hours. Young workers (under 18) are entitled to 30 minutes after 4.5 hours. Manual tracking routinely misses these legal requirements
No clear record of overtime worked or paid. Without accurate records, employers cannot prove NMW compliance when overtime hours are factored in — a common trigger for HMRC investigations and employment tribunal claims
Every timesheet entry, approval, and change is logged with timestamps, user identification, and IP addresses. This creates the robust evidence trail that HMRC expects during NMW investigations and that employment tribunals require when adjudicating working time disputes. Records are retained for 6+ years, exceeding the minimum 3-year HMRC payroll record requirement.
All data stored for 6+ years, exceeding HMRC's 3-year payroll record requirement and the 2-year WTR record-keeping obligation. Complete audit trail with timestamps provides the evidence base HMRC inspectors look for
Automatic alerts when employees approach the 48-hour weekly average limit, are at risk of missing the 11-hour daily rest period, or have not recorded their mandatory 20-minute rest break after 6 hours of work
Generate detailed compliance reports for HMRC investigations, external auditors, or employment tribunals in seconds. Reports include hours worked, rest breaks taken, overtime, and approval history — everything an investigator needs
Get warned before compliance breaches happen — not after
TimeTally helps you comply with the full spectrum of UK employment regulations. From the Working Time Regulations 1998 and National Minimum Wage Act 1998 to the Employment Rights Act 1996 and the latest 2023 amendments for irregular workers, every requirement is covered.
Monitor the 48-hour weekly average limit (calculated over a 17-week reference period), mandatory 20-minute rest breaks after 6 hours, 11-hour daily rest periods, and 24-hour uninterrupted weekly rest. Night worker limits of 8 hours average are also tracked automatically.
Accurate hour tracking proves NMW compliance by showing exactly what was paid per hour worked. Automatic calculations handle the different NMW rates for workers aged 21+, 18-20, under 18, and apprentices — critical because HMRC can go back 6 years when investigating underpayment.
Track irregular hours and part-year workers with the legally mandated 12.07% accrual method introduced by the 2023 amendments. This replaced the complex 52-week reference period for calculating holiday entitlement for zero-hours and casual workers.
The Employment Rights Act 1996 requires employers to provide itemised pay statements and maintain accurate records of hours, pay, and leave. TimeTally's digital audit trail provides the documentary evidence needed to defend against unfair deduction, holiday pay, and constructive dismissal claims.
Fully compliant with UK GDPR and the Data Protection Act 2018. Data stored in EU data centres with TLS 1.2+ encryption, strict retention policies aligned to HMRC requirements, and employee subject access request support as required under Article 15.
Itemised holiday pay calculations that show employees exactly how their entitlement is calculated, whether on a standard 5.6-week basis or the 12.07% accrual method. Transparent calculations help prevent disputes and demonstrate good faith compliance.
Expert guides to UK employment law compliance
