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Employment Law

Time Tracking Verdict: These are the Rules!

Following the Fof's “time clock ruling” of September 2022, it was initially unclear what the obligation to record working time would look like. The reasons for the verdict on recording working time sheds light on the darkness.

Tanja Hartmann
Content Marketing Managerin
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European employers must fully record the working hours of their employees — this is how the European Court of Justice as early as 2019. Until now, Germany, as in other EU countries, has only had the obligation to record overtime worked precisely. With the rulings of the ECJ and the Federal Labor Court From September 2022, this regulation was overturned. But what do employers and employees have to consider from now on?

These are the new rules following the time clock ruling at a glance

According to the Federal Labor Court ruling in September 2022, employees must Attendance From now on, record exactly what will have far-reaching effects on everyday working life. What exactly is regulated?

Documentation requirement without bureaucratic effort with ZEP!

It is estimated that around 1/3 of German employees already record working hours today. In many cases, this is done with a mixture of a Timesheet From paper and entries in Excel. However, this solution is highly error-prone and unreliable. An incorrect formula and the entire Excel sheet are no longer useful.

For the reliable and effective tracking of working and project times, we developed ZEP more than 20 years ago. Our software covers from pure Working time tracking Up to complete project management, all levels and requirements of modern Project time tracking Off. ZEP already makes everyday work easier for more than 1,800 companies, contributes to their profitability and is an intuitive tool that saves users nerves and time in particular when tracking their project and working times.

Time clock ruling by the Federal Labour Court: The new decisions on tracking working time in detail

Following the BAG ruling in September 2022, Thunderclap swept through the Republic: Is the time clock coming back now? General ambiguity spread when the labor court ruled: From now on, employees must record their hours worked. Only the “how” was not clarified. In December 2022, the long-awaited (and also dreaded) Statement of reasons for the BAG published. On a full 22 pages, the judges explain which points are now relevant for employers and employees in the future and how their everyday working life could possibly change as a result. The time clock judgment states the following reasons:


According to the verdict, it is not enough that employers simply provide a system for time tracking — the system must also be used. Employers and employees are therefore required to record their working hours precisely from now on, with employers being able to oblige their employees to record themselves. This also applies to so-called trust-based working hours. Here, too, times must be recorded by the employee and controlled by the employer.


According to current EU law, there is already an obligation in Germany to precisely document working hours with the ECJ ruling of 2019. However, the federal government has not yet


No or not necessarily. In its verdict, the BAG does not prescribe HOW working time must be recorded, but simply THAT it must be documented. How this is done is up to employers. Whether by time clock, with the help of a computer system or by piece of paper — the court gives employers room for manoeuvre here.

This is how the new rules of the judgment are justified

The new provisions of the Federal Labour Court (BAG) judgment are comprehensively justified. First, the BAG underlines the need for employers to introduce a system for tracking working time that takes appropriate account of the safety and health protection of employees. It is not enough simply to choose a cost-effective system; rather, it must be suitable and reliable. Employers may delegate time tracking to employees, but they must ensure that the system is actually being used, which requires random checks.

In addition, legal data protection regulations must be observed when introducing a time tracking system. There is still no obligation for senior employees to record working hours, but it must be checked on a case-by-case basis whether a manager is actually considered a senior employee.

Conclusion

European employers must fully record the working hours of their employees — as the European Court of Justice ruled back in 2019. Until now, Germany has only had the obligation to record overtime precisely. With the judgments of the ECJ and the Federal Labour Court (BAG) of September 2022, this provision was amended. From now on, employees must precisely document their working hours, which will have far-reaching effects on everyday working life.

The New Rules oblige employers to provide an appropriate system for tracking working time and to ensure its use. This can be done through self-tracking by employees, including trust-based working hours. Implementation is immediate and there is no transition period. Employers have room for manoeuvre when choosing the method for tracking time, whether through a time clock, computer system or manual tracking. These changes directly implement the existing EU requirements into German employment law, even without national legislation.

Are you interested in our GDPR-compliant solution? With our 30-day trial You can try out all features without obligation and free of charge, even longer than 30 days if necessary. If you have any questions, please contact our free support We would be happy to advise you.

FAQ

When does the working time verdict begin?

According to current EU law, since the ECJ ruling of 2019, there has also been an obligation in Germany to precisely document working hours. Although the federal government has not yet passed a corresponding law, the Federal Labour Court (BAG) pushed ahead in September 2022 and decided that the new rules apply immediately. This is expressly emphasized in the judgment: There is no transition period. Working hours must be recorded precisely from now on.

How must working time be recorded?

The BAG does not prescribe how working time must be recorded, but simply that it must be documented. It is up to employers whether they record working hours using a time clock, computer system or manually. The Court Leaves Room for Manoeuvre here.

Who can view the time tracking?

The working time tracking data may be viewed by the following parties: the works council, individual employees and the employer. Access by third parties is only permitted if the person concerned has expressly given their consent.

FAQs

When does the working time verdict begin?

According to current EU law, since the ECJ ruling of 2019, there has also been an obligation in Germany to precisely document working hours. Although the federal government has not yet passed a corresponding law, the Federal Labour Court (BAG) pushed ahead in September 2022 and decided that the new rules apply immediately. This is expressly emphasized in the judgment: There is no transition period. Working hours must be recorded precisely from now on.

How must working time be recorded?

The BAG does not prescribe how working time must be recorded, but simply that it must be documented. It is up to employers whether they record working hours using a time clock, computer system or manually. The court leaves room for manoeuvre here.

Who can view the time recording?

The working time recording data may be viewed by the following parties: the works council, individual employees and the employer. Access by third parties is only permitted if the person concerned has expressly given their consent.

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