Let's talk about the level of trust between the employee and the employer...

I don't think the time tracker violates the level of trust between the employer and employee if you are upfront about it! It can be really helpful if you are measuring hours spent on client projects so you know how much to bill them!

I don't think so. There are two things, you need to bill based on the hours of work, and also with the tracking you can understand where your employees need to improve.