Timesheet Fraud in Construction: How to Stop It & What to Do If Employees and Subcontractors Lie

Introduction

Timesheet fraud is a major problem in the construction industry, costing businesses thousands in lost wages every year. Whether it’s workers exaggerating hours, falsifying clock-ins, or subcontractors invoicing for time they didn’t work, the impact can be devastating.

So, is falsifying a timesheet a crime? What can you do if an employee lies about their hours? And how do you stop timesheet manipulation before it hurts your business? This guide explains everything you need to know.

What Is Timesheet Fraud in Construction?

Timesheet fraud happens when an employee falsifies their recorded work hours to get paid for time they haven’t actually worked.

Common Types of Timesheet Fraud in Construction

❌ Buddy Punching – A worker clocks in for someone who isn’t on-site.
❌ Rounding Up Hours – Employees log more hours than they actually worked.
❌ Extended Breaks – Workers clock in but take unauthorised long breaks.
❌ Late Arrivals – Arriving to work late while still claiming full hours.
❌ Early Clock-Outs – Leaving the site early while still claiming full hours.
❌ Subcontractor Overbilling – External teams invoicing for more hours than worked.

📢 If you’re using paper timesheets or manual clock-ins, you’re vulnerable to timesheet fraud.

Is Falsifying a Timesheet a Crime?

Yes. Falsifying timesheets is considered fraud and can be treated as a criminal offence.

📌 UK Law on Timesheet Fraud
🔹 Fraud Act 2006 – Deliberately falsifying hours is a form of false representation, which is illegal.
🔹 Employment Law – If an employee lies about their hours, it can be considered gross misconduct, leading to dismissal.
🔹 Payroll Fraud Investigations – HMRC can investigate and impose fines or legal action against fraudulent claims.

In serious cases, timesheet fraud can lead to dismissal, legal proceedings, and even criminal charges.

What to Do If an Employee Lies on a Timesheet

If you suspect an employee is falsifying their timesheets, follow these steps:

Step 1: Gather Evidence

Before making accusations, collect proof:
✔️ Compare timesheets with site CCTV footage or manager reports.
✔️ Check geolocation data (if using a digital time tracking system like SubTrack).
✔️ Interview supervisors and co-workers to verify the worker’s presence.

Step 2: Conduct a Formal Meeting

Once you have evidence, hold a disciplinary meeting with the worker. Ask:
👷 “Can you explain why your timesheet shows more hours than you worked?”
🛠 “We have proof that you left early. Why did your timesheet say otherwise?”
🚧 “Is there a reason why your clock-ins don’t match your actual work times?”

If the worker can’t provide a valid reason, this could be grounds for disciplinary action.

Step 3: Apply the Appropriate Consequences

✔️ First offence? Issue a formal warning and require retraining on timesheet policies.
✔️ Repeated fraud? This may count as gross misconduct, leading to dismissal.
✔️ Large-scale fraud? Consider legal action or reporting the matter to authorities.

What Is Timesheet Manipulation?

Timesheet manipulation is when an employee deliberately adjusts their recorded hours to receive unearned wages.

How Timesheets Get Manipulated in Construction

🔹 Manually filling in timesheets with false hours.
🔹 Clocking in remotely without being on-site.
🔹 Exaggerating overtime hours to boost pay.
🔹 Using loopholes in time tracking systems.
🔹Workers filling in timesheets retrospectively at the end of the week with false times.

Even small adjustments add up over time, costing your business thousands in unnecessary wages.

How to Stop Timesheet Fraud in Construction

1. Switch to a Geofencing Time Tracking System

The best way to prevent timesheet fraud is by using geofencing time tracking, which ensures:

✔️ Workers can only clock in when physically on-site.
✔️ Clock-ins and clock-outs are automatically logged.
✔️ Real-time attendance monitoring prevents false reporting.
✔️ Payroll is based on actual time worked, not estimates.

📢 SubTrack is built for construction firms—eliminating timesheet fraud and making payroll 100% accurate.

2. Implement a Clear Timesheet Policy

All workers should understand the consequences of timesheet fraud. Your policy should state:

📌 Employees must accurately record their hours.
📌 Falsifying timesheets is a serious offence and may lead to dismissal.
📌 All timesheets are subject to audit and verification.

3. Use Random Spot Checks & Supervisor Sign-Offs

🔹 Have site managers verify attendance at random times.
🔹 Require supervisors to approve timesheets before payroll processing.
🔹 Use CCTV and job tracking reports to cross-check hours worked.

4. Automate Payroll with Verified Data

Instead of relying on manual input, use a system like SubTrack that:
✔️ Automates timesheets based on clock-in data.
✔️ Prevents workers from editing their hours.
✔️ Links directly to payroll for 100% accuracy.

💡 This eliminates disputes, fraud, and payroll errors—saving your business time and money.

Final Thoughts: Preventing Timesheet Fraud in Construction

Timesheet fraud is a real issue in construction, but with the right systems in place, you can eliminate false reporting and ensure workers are only paid for the hours they actually work.

✅ Geofencing time tracking prevents fraudulent clock-ins.
✅ Automated digital timesheets remove human error.
✅ Clear policies and random checks discourage fraud.
✅ Payroll integration ensures only verified hours are paid.

Want to eliminate timesheet fraud in your construction business? Get started with SubTrack today!