Geofencing is a type of location-based mobile app or software uses the Global Positioning System (GPS), radio frequency identification (RFID), Wi-Fi or cellular data to define a virtual geographical boundary and trigger a action when a device enters or exits that boundary. This boundary is known as a geofence.geofencing in Employee Time Tracking With a GPS timeclock app, employees are able to clock in directly from their phones. Employers, meanwhile, are able to see exactly where employees are punching in from. That means they’ll be able to tell when employees are clocking in from somewhere outside of the workplace. Time clock app GPS allows managers to track employee hours and location from miles away. Most importantly, geofencing makes sure that employees are compensated for the time they spend on site. Geofencing helps with employee time tracking and administration.