Timesheets, spreadsheets or an app: since September 2022 it has been clear that employers in Germany must record their employees’ working time. Many businesses are still unsure what exactly applies – especially as the legislator is working on new rules. This guide explains the current situation (October 2026) and how to meet the obligation without much effort.
The 2022 Federal Labour Court ruling: why the obligation applies
On 13 September 2022, the German Federal Labour Court (Bundesarbeitsgericht, BAG, case no. 1 ABR 22/21) ruled that employers must introduce a system that records the start and end of daily working time, including overtime. The court based its decision on Section 3(2) no. 1 of the German Occupational Safety and Health Act (Arbeitsschutzgesetz, ArbSchG), interpreted in the light of EU law.
The background is the so-called “time clock ruling” of the Court of Justice of the European Union of 14 May 2019 (case C-55/18). In it, the CJEU required all EU member states to ensure that employers set up an “objective, reliable and accessible system” for measuring working time. Only then can compliance with maximum working hours and rest periods be verified.
Important: the obligation has applied directly since the BAG decision. There is no transition period.
What happens next in legislation?
The German Working Hours Act (Arbeitszeitgesetz, ArbZG) is to regulate the recording obligation explicitly in future. In June 2026, a draft bill from the Federal Ministry of Labour became public. It provides that the start, end and duration of daily working time must be recorded electronically on the day the work is performed. Small businesses with up to ten employees are to be exempt from the electronic form, and staggered transition periods are planned for all other businesses. The law has not yet been passed (as of October 2026) and changes are possible during the legislative process. The recording obligation itself, however, already applies today.
Who does the obligation apply to?
In principle, the obligation applies to all employers in Germany – regardless of industry, company size and whether there is a works council. The working time of all employees must be recorded, including:
- part-time staff and mini-jobbers,
- apprentices and working students,
- employees working from home or in the field.
Executive employees within the meaning of the Working Hours Act are exempt. Trust-based working time remains possible: employees can still organise their time freely – it just has to be documented. You may delegate the recording to your employees, but responsibility remains with the employer.
Stricter rules under the Minimum Wage Act
For mini-jobbers and for industries listed in the German Act to Combat Undeclared Work – such as construction, hospitality, building cleaning and freight, transport and logistics – a special obligation has applied for some time (Section 17 MiLoG): the start, end and duration of working time must be recorded within seven days at the latest and kept for at least two years.
What must be recorded?
According to case law, the system must record at least:
- the start of daily working time,
- the end of daily working time,
- the duration, including overtime.
It is also advisable to document breaks. This is the only way to prove that statutory rest breaks (Section 4 ArbZG), the maximum daily working time and the eleven-hour rest period between two working days (Section 5 ArbZG) are observed. Working time exceeding eight hours on a working day as well as work on Sundays and public holidays must in any case be recorded and kept for two years under Section 16(2) ArbZG.
The BAG does not prescribe a specific form. What matters is that the records are complete, timely and traceable.
What are the penalties for non-compliance?
The Occupational Safety and Health Act currently does not impose a direct fine merely for not having a time recording system. However, a violation is not without consequences:
- Order by the authority: the occupational safety authority can order the introduction of time recording (Section 22(3) ArbSchG). Anyone who fails to comply with such an enforceable order risks a fine of up to EUR 30,000 (Section 25 ArbSchG).
- Working Hours Act: if the records required under Section 16(2) ArbZG are missing, a fine of up to EUR 30,000 may also be imposed (Section 22 ArbZG).
- Minimum Wage Act: violations of the documentation obligation under Section 17 MiLoG can be punished with fines of up to EUR 30,000 (Section 21 MiLoG).
There is also a practical risk: without proper records, you can hardly prove during an inspection that maximum working hours and rest periods were observed.
Digital vs. manual time tracking
Until the new Working Hours Act comes into force, you may still record working time on paper or in a spreadsheet. In practice, however, this approach quickly reaches its limits.
Manual recording (timesheets, Excel):
- is often filled in after the fact and therefore inaccurate,
- is error-prone and easy to alter,
- takes a lot of effort to collect, check and evaluate.
Digital recording (app or terminal):
- records start, end and breaks in real time at the push of a button,
- calculates target hours, actual hours and overtime automatically,
- produces monthly reports instantly – for payroll or an inspection,
- is already prepared for the planned electronic obligation.
What to look for in a digital solution
- Easy to use on a smartphone, so your team really records times promptly,
- break and overtime tracking,
- export of records, for example as PDF,
- clear permissions: employees see their own times, admins see the whole team,
- GDPR-compliant handling of data.
Conclusion
Recording working time is already mandatory in Germany today – for almost all employers and all employees. With the planned reform of the Working Hours Act, electronic recording is likely to become the standard. Switching to a digital solution now means meeting current requirements, saving administrative effort and being ready for the new legal situation.