Since May 2019, it has been clear: According to the ECJ ruling, tracking working time is mandatory! In September 2022, the BAG followed suit and since April 2023, a first draft bill from the Federal Ministry of Labour has been presented. Can politicians agree on a binding law on electronic time tracking after the 2025 federal election?
It is currently still being examined how a law on tracking working time can also be implemented in smaller companies without creating a great deal of bureaucratic effort. So what's next with the planned amendment to the Working Hours Act? We have summarized all previous developments, milestones and current prospects for you in this blog.
Will there be a new law on tracking working time in 2025?
The Federal Government is currently examining how a law on tracking working time (even for smaller companies) can be implemented — without causing excessive bureaucratization. The expected law on tracking working time was still a long way off in 2024. But why does it take so long?
The Federal Government is currently awaiting the results of a project that investigates how Working time tracking even for small companies Can be introduced without unduly burdening them. This information comes from a communication from the German Bundestag dated January 5, 2024, which mainly deals with the development of overtime worked in Germany.
It is unlikely that a new bill will be drafted before the project results have been reviewed and evaluated. The requirement for electronic tracking of working time provided for in the current draft law, with a few exceptions, is one of the disputed points that has not yet led to a coordinated bill in the coalition. There is also another topic of discussion: The combination of working time tracking and additional flexibilization of working hours — as required by the FDP, for example.
What has happened so far: Time tracking is mandatory, isn't it?
How did the landmark ECJ ruling come about in 2019 anyway? The discussion about an obligation to track working hours began with the Spanish trade union CCOO filing a lawsuit against Deutsche Bank in Spain. Why is that? Worker representatives called for the implementation of a system for tracking total working time. In her opinion, the number of overtime hours could only be correctly calculated if the total working time was documented. At that time, over 50 percent of overtime worked was not tracked in Spain. The National Court of Justice in Madrid then referred the dispute to the European Court of Justice (ECJ).
ECJ ruling on time tracking obligation
On May 14, 2019, judges in Luxembourg ruled in accordance with the EU Working Time Directive and the Charter of Fundamental Rights of the European Union that working time worked on a daily basis must be tracked in full. In it, they called on the member states to adopt regulations which oblige employers to introduce a system for measuring daily working hours. This is necessary so that working hours are not exceeded. Member states must ensure that workers' rights are respected. The member states themselves can determine in their employment law which measures should be used for this purpose. According to the ECJ ruling, the data collected on working time must be objective and reliable. Employers and employees must have equal access to actual working time data in order to be able to prove compliance with the guidelines to the competent authorities.
BAG time clock verdict: A bang
On September 13, 2022, the Federal Labour Court (BAG) ruled that there is an obligation in Germany to track working time. The BAG time clock ruling applies to all companies based in Germany, regardless of the size or existence of a works council.
Companies that do not comply with this obligation to track working hours are in an “unlawful state” and risk potential violations. These violations of the Occupational Health and Safety Act can be punished with fines of up to 25,000 euros in accordance with §25 ArbSchG.
On December 3, 2022, the written statement of the BAG of reasons for the verdict became groundbreaking Time clock verdict published. It stated that simply providing a system for time tracking was not enough, but that this system must also be used. Since then at the latest, German employers and employees have been required to track their working hours precisely. This also applies to agreed trust-based working hours. The form in which working hours are tracked is up to the employer. Whether by time clock, software or in writing on a piece of paper — the court gives employers leeway to design.
Draft bill from the Federal Ministry of Labor
The draft bill provides that working hours must be tracked electronically. This measure is intended to enable improved control of tracked working hours.
Which data must be collected?
- Start of daily working hours
- Length of working time per day
- End of daily working hours
What exceptions are there in the bill?
- Small companies with a maximum of 10 employees do not necessarily have to track working hours electronically
- The electronic form of tracking may differ
- The time of tracking may vary. However, this is limited and must be done within 7 days of the work being done.
- If total working time cannot be measured or cannot be determined in advance, there may be discrepancies.
What are the advantages of the draft speaker?
Tracking working hours also helps employers to keep an eye on the statutory maximum working hours and minimum rest periods of their employees, which in turn contributes to occupational health and safety of employees.
Working Time Tracking Act: What do politicians say?
On May 26, 2023, the motion of the CDU/CSU parliamentary group entitled”Make working time tracking low in bureaucracy — enable more flexible work” (20/6909) advise. Following the debate, the proposal was referred to the Committee on Labour and Social Affairs for lead discussion. The application requires employers to track the working hours of their employees in order to comply with the decision of the European Court of Justice (ECJ) of May 2019.
The CDU/CSU Motion provides that a new law on tracking working time flexible models Should enable and allow trust-based working hours. The method of tracking working time is up to the employer. The ECJ ruling from May 2019 obligate EU member states to introduce working time tracking. The CDU/CSU parliamentary group criticizes the draft bill from the Federal Ministry of Labour as unbalanced and bureaucratic.
If it's after SPD member of the Bundestag Mathias Papendieck If it worked, the law on tracking working hours would be a matter of a long time ago. He sees opportunities in particular in taking action against wage dumping with such a law and securing the minimum wage. That is also the view of the Federal Labor Court. The basic ruling was necessary to control maximum working hours and rest periods, although the details of tracking working time could be determined by politicians.
The Union and also the FDP are committed to maintaining the model of trust-based working hours. Companies should continue to be able to refrain from monitoring the actual hours worked by their employees. This regulation affects around 20 percent of all employees in Germany. SPD MP Papendieck is opposed. He points out that Mobile time tracking Can also be done conveniently via apps. As an employee, you can digitally stamp on your mobile phone in the morning and track the end of work in the evening — regardless of whether you work from home or somewhere else.
And what's next?
Compulsory tracking of working hours — even without law
Prepare yourself for the fact that Germany is likely to have a law on tracking working time in 2025. In order to meet these legal requirements and at the same time reduce the bureaucratic burden of regular tasks, you already have the right partner at your side with ZEP.
Our software not only ensures legally compliant digital time tracking, but also enables the digitization and automation of various areas of the company — from simple time tracking to comprehensive project management, you can quickly and easily integrate vacation management, project planning and your complete project controlling into your company.
In any case, it makes sense — regardless of the political and/or legal situation — to address the issue of time tracking right now. Because: Tracking working time is mandatory! And that's been the case for almost 5 years. Whether with or without a law.
Why is tracking working time important?
Tracking working time is important as it helps to ensure compliance with legal regulations such as maximum working hours and minimum rest periods. With accurate documentation, you as an employer can also improve productivity and efficiency in the company and ensure fair remuneration.
Freedom instead of monitoring: Why you shouldn't control your employees
In the context of the Working Time Tracking Act, it is important to find a balance between the need to track time to comply with legal regulations and the protection of employee autonomy. While working time tracking meets legal requirements, you should avoid excessive focus on control to maintain employee trust and motivation.
A work environment that promotes freedom and personal responsibility contributes to a healthy work culture and higher employee satisfaction in the long term.
Conclusion
Although since the ECJ ruling of 2019 and the subsequent BAG time clock verdict Since 2022 has done a lot, a binding law on tracking working time in Germany is still a long way off. Politicians are intensively examining how such a regulation can also be implemented for smaller companies without creating too much bureaucracy. The results of this audit are not expected to be available until the second quarter of 2024. This shows that the discussion on this topic is far from over.
It is clear that introducing such legislation is a complex challenge that must address various interests and concerns. Until a law on working time tracking is finally passed, it remains important that companies prepare themselves now for possible legal requirements and implement suitable solutions for time-saving and legally compliant tracking of working hours.
Ultimately, a balance should always be maintained between compliance with legal regulations and the protection of employee autonomy in order to promote a healthy work culture.
FAQs
Who can view my working 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.
What must be documented when tracking working time?
When tracking working time, the start, duration and end of daily working hours must be recorded. This serves to monitor and ensure compliance with legal requirements such as maximum working hours and minimum rest periods.
