I'm not sure what a correct system should be, but I know that it can't be based on the Earth, the sun, or any one galaxy. In order to have accurate time, it must be external to all of these things, like a meter stick is to an object.
The possible problem with this is that there will come a time when "3:00 pm" is in the middle of the night, the time to wake up for work will always "change".
edit: more thoughts