Cybersecurity & Risk ManagementData Protection

Biometric Time Tracking: Why Fingerprint Scanning Requires Employee Consent

Biometric Time Tracking only possible with consent
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Arthur
10.07.2025
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Smart Time Tracking – But Is It Legal?

Time tracking is becoming more important in the modern workplace. Many companies are turning to smart systems to log working hours efficiently and accurately. Biometric systems, such as fingerprint scanners, promise high security and reliability.

But there’s a problem: Are these systems legally compliant?

This question is crucial, because biometric data is considered one of the most sensitive categories of personal data under the GDPR. Capturing and processing it is only permitted under strict conditions.

In this article, we’ll explain why employee consent is essential, what legal principles apply, and how businesses can stay on the safe side.

Table of Contents:

The Benefits of Biometric Time Tracking

There’s no denying the advantages of biometric systems:

  • Accuracy – Manual errors or “buddy punching” are avoided
  • Authenticity – Only the authorized employee can clock in or out
  • Convenience – No need for cards, chips, or badges
  • Efficiency – Streamlines the entire time-tracking process

Still, biometric systems aren’t just tools. They represent a deep intrusion into personal privacy. That’s why companies must treat their use as a high-risk data processing activity.

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Why Consent Is Legally Required

Under Article 9(1) of the GDPR, processing biometric data is generally prohibited, unless a specific exemption applies.

In most workplace scenarios, only Article 9(2)(a) is relevant:
The explicit consent of the individual concerned.

This consent must be:

  • Voluntary – without pressure or disadvantage if refused
  • Informed – explaining purpose, storage period, and rights
  • Revocable at any time, without consequences

In practice: Employees must have a real choice, meaning alternative time-tracking options must be offered. Otherwise, consent is invalid.

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Legal Basis & GDPR Requirements

The GDPR treats biometric data as a special category of personal data (Art. 9). It can only be processed if:

  • Legally necessary (e.g., for secure access to sensitive areas), or
  • Explicitly consented to by the employee

For regular office or warehouse time tracking, biometric data is not necessary, so only consent makes it legal.

If companies still choose to use biometric systems, they are legally required to:

  • Conduct a Data Protection Impact Assessment (DPIA) (Art. 35 GDPR)
  • Implement technical and organizational security measures (e.g. encryption)

Maintain full documentation and accountability (Art. 5(2) GDPR)

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Court Decisions & Regulator Guidance: The Legal Boundaries

Several court rulings and regulatory statements confirm the strict limits:

  • The Berlin Labor Court ruled (Ref. 29 Ca 5451/19) that fingerprint-based time tracking is illegal without freely given consent.
  • The German Data Protection Conference (DSK) emphasized that employee consent is only valid if there is a real alternative and no pressure.

Bottom line: Biometric time tracking without valid consent is unlawful, no matter how secure the technology is.

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Better Alternatives to Fingerprint Scanning

There are many time-tracking solutions with a lower privacy impact, including:

  • RFID cards or chips linked to employee ID
  • Mobile apps with geofencing for field staff
  • PIN-based clock-in terminals
  • Digital time clocks with access controls

These options are easier to make GDPR-compliant, and usually carry less legal risk.

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Best Practices for Using Biometric Time Tracking (If Absolutely Necessary)

If a company still opts to use biometrics, these safeguards are essential:

  • Conduct a Data Protection Impact Assessment (DPIA)
  • Obtain explicit, documented, and voluntary consent
  • Fulfill information obligations (Art. 13 GDPR)
  • Offer non-biometric alternatives
  • Use strong technical security (e.g. encryption, access restrictions, deletion schedules)
  • Provide regular training and awareness for staff

Only when all these measures are in place can biometric systems be legally and ethically justified.

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Conclusion: Biometrics Require Caution and Strong Safeguards

Biometric time tracking offers real benefits, but comes with high legal and ethical risks.
Without freely given, explicit employee consent and viable alternatives, such systems must not be used.

Companies should critically assess:

  • Does the value justify the privacy intrusion?
  • Could a more privacy-friendly solution achieve the same goal?

Because one thing is clear: Trust is not built through technology alone, but through transparency, respect, and legal compliance.

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Important: The content of this article is for informational purposes only and does not constitute legal advice. The information provided here is no substitute for personalized legal advice from a data protection officer or an attorney. We do not guarantee that the information provided is up to date, complete, or accurate. Any actions taken on the basis of the information contained in this article are at your own risk. We recommend that you always consult a data protection officer or an attorney with any legal questions or problems.

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