Why time recording has become a central issue for SMEs
In Switzerland, every employer is required to document the working time actually performed by their staff. The obligation derives from Art. 46 of the Federal Labour Act (LTr) and Art. 73 of Ordinance 1 to the Labour Act (OLT 1). This is not an administrative formality: the register makes it possible to verify compliance with maximum weekly working hours, rest periods, and rules on overtime and supplementary hours.
For SMEs — often with small teams, variable shifts, and managers wearing multiple hats — time recording can feel like an additional burden. However, reliable working time data is the basis for correctly calculating wages, supplements, and personnel costs in accounting. An integrated digital system reduces manual errors, speeds up monthly closing, and protects the company in the event of an inspection by the cantonal labour inspectorate.
This guide explains what federal law requires, which exemptions are permitted, how to choose suitable digital tools, and what impact time recording has on personnel cost management, with references updated for 2026.
Legal basis: LTr, OLT 1, and the 2016 revision
The federal regulatory framework is structured on two main levels:
Art. 46 LTr — The employer must make records or other documents required for the enforcement of the law available to the enforcement and supervisory authorities. In practice, the company must be able to demonstrate at any time how working hours, rest periods, and compensations are organised.
Art. 73 OLT 1 — Defines the minimum content of the register: daily and weekly duration of work actually performed, time coordinates (start and end), breaks of at least 30 minutes, overtime and compensatory work, as well as time and wage supplements provided for by law.
Art. 73a and 73b OLT 1 — Introduced with the revision in force from 1 January 2016, they provide for a full exemption (73a) or simplified recording (73b) for categories of workers with a high degree of autonomy in organising their working hours. In companies with fewer than 50 employees, the agreement for simplified recording may be concluded individually in writing.
What to record: comparison of the three regimes
Depending on the employee's profile and the applicable agreements, documentation obligations vary considerably:
| Element | Full recording (Art. 73) | Simplified recording (Art. 73b) | Exemption (Art. 73a) |
|---|---|---|---|
| Actual daily duration | Yes | Yes | No (unless requested by the employee) |
| Start and end of working day | Yes | No (except night/Sunday work) | Not required |
| Breaks ≥ 30 minutes | Yes (period and duration) | No | Not required |
| Overtime and compensatory time | Yes, with position within the day | Duration to be recorded | Not required |
| Conditions of access | General rule for all | Significant autonomy over working hours; written agreement | Gross salary > CHF 120,000/year (including bonuses), broad autonomy and predominant freedom over working hours; only via CEA and individual written agreement |
| SMEs (< 50 employees) | Mandatory company tool | Individual agreement + documented annual review | Rare; requires collective employment agreement |
| Retention | At least 5 years from expiry of validity (Art. 73 para. 2 OLT 1) | ||
Maximum working hours: the limits the register must demonstrate
The hours register serves to verify compliance with the limits set by Art. 9 LTr and the supplementary provisions:
45 hours per week
For workers in industrial companies, office staff, technical employees, and sales staff of large retail businesses (with more than 50 employees). Exceeding this constitutes overtime, permitted only exceptionally and subject to the annual cap of 170 hours. It must be compensated with equivalent rest within 14 weeks; the 25% premium is due only beyond 60 hours per year (Art. 13 LTr).
50 hours per week
For all other workers. Here too, every hour beyond the legal limit is overtime. The register must make it possible to reconstruct week by week the annual total of overtime, in compliance with the annual cap of 140 hours provided for by law (Art. 12 LTr).
It is important to distinguish supplementary hours (work beyond contractual hours but within the legal limit) from overtime (beyond 45 or 50 hours). Supplementary hours are paid according to the contract, internal regulations, or, in the absence of agreements, Art. 321c CO (25% supplement unless otherwise agreed in writing). Overtime, by contrast, is governed by Art. 13 LTr, with mandatory compensation in rest or, in the cases provided for, a 25% premium.
Digital tools: from clocking in to accounting integration
The law does not prescribe a specific system: paper registers, Excel sheets, time clock terminals, mobile apps, or HR software are all permitted. For an SME, the choice should be assessed against four criteria:
- 1.Legal compliance — The system must record all elements required by the applicable regime (full or simplified) and allow monthly validation by the employer.
- 2.Accessibility — Data must be accessible to the employee, the authorities, and, where applicable, employee representatives.
- 3.Integration — Export to the payroll system and accounting avoids duplicate data entry and discrepancies between recorded hours and booked costs.
- 4.Traceability — Change logs, correction history, and backups: decisive elements in the event of an audit or dispute.
Typical solutions for Swiss SMEs
Badges and terminals
Suitable for production, retail, and construction sites. Require training and clear rules on forgotten clock-ins.
Apps and cloud HR
Ideal for distributed teams or remote work. Check hosting, data protection (FADP), and contractual clauses.
Integrated modules
Software that links attendance, payroll, and accounting — reducing the risk of discrepancies between hours worked and recorded personnel costs.
Impact on personnel costs and accounting
A well-managed hours register directly affects the accuracy of personnel costs and the company's financial health:
Calculation of supplements — Night work (generally between 23:00 and 06:00), Sunday work, and work on public holidays entails time or wage supplements provided for by the LTr that must be calculated on the hours actually recorded. Errors in the register translate into under- or over-estimation of wage costs.
Allocation by project or cost centre — In SMEs that bill by the hour (consulting, crafts, services), time tracking feeds project margin and profitability by client — data that Accountex can use for management analysis and reporting.
Accruals and budgeting — Comparing planned and actual hours makes it possible to anticipate overtime excesses, plan hiring, or renegotiate workloads before they impact the balance sheet.
Monthly closing — Aligning the attendance register, payslips, and accounting entries (wages account, social security liabilities, holiday accruals) reduces accruals and corrections. A digital flow from clocking to accounting speeds up the SME's monthly closing.
Practical implementation: LTr compliance checklist
To bring your SME into compliance, follow these operational steps:
- Step 1
Map staff by applicable regime
Classify each employee: full recording, simplified (with written agreement), or possible exemption via CEA. Document the contractual basis.
- Step 2
Update staff regulations and contracts
Include rules on working hours, breaks, overtime, monthly validation, and the employee's responsibility for recording.
- Step 3
Choose and configure the digital tool
Set contractual hours, legal limits, supplements, and export to payroll and accounting.
- Step 4
Train managers and teams
Explain what to clock in, how to correct errors, and why the data feeds wages and company costs.
- Step 5
Periodic checks and annual review
For the simplified regime in SMEs, document the end-of-year review on workload. Check quarterly consistency between the register, payslips, and accounting.
Inspections, sanctions, and risks for the employer
Cantonal labour inspectorates may request the registers at any time, including following a report by an employee. The absence of compliant documentation, incomplete registers, or failure to perform monthly validation may result in warnings, remedial orders, and administrative fines.
In more serious cases — excessive working hours that put health and safety at risk — the law provides for criminal sanctions and, in extreme situations, suspension of business activities. For the employer, beyond the legal risk, there is exposure to retroactive wage claims, unpaid supplements, and reputational damage.
Watch for cantonal differences
Although the LTr is federal law, enforcement is the responsibility of the cantons. Some cantons apply stricter controls or require specific forms (e.g. construction). Check the practices in your canton and, for regulated sectors, any clauses of the applicable collective employment agreement.
Linking attendance and accounting with Accountex
Time recording should not remain isolated in HR software. When data flows into accounting, the business owner gains a realistic view of personnel costs, project margins, and monthly variations — central elements for sound business decisions.
With Accountex, Swiss SMEs can import or record wage costs derived from hours worked, monitor personnel cost as a share of revenue, and prepare reporting consistent with Swiss accounting standards. An integrated process — from time tracking to the balance sheet — reduces manual work and increases the reliability of financial data, turning an LTr obligation into a management tool.