Germany's Arbeitszeitgesetz: The 2026 Time Tracking Mandate

On 13 September 2022, Germany's Federal Labor Court (Bundesarbeitsgericht, BAG) handed down what looked like an unremarkable decision (1 ABR 22/21) and quietly imposed an obligation that many German employers had thought of as a distant Brussels debate: the entire working time of every employee must be recorded systematically, not just overtime, not just additional hours, but the full span from start to end of work, minus breaks.

This post explains what the Arbeitszeitgesetz (ArbZG) requires, how the BAG ruling fits in, what the duty means for German employers, and how to comply in practice.

#The ArbZG in One Paragraph

The Arbeitszeitgesetz (Working Time Act, ArbZG) has been in force since 1994. It sets three pillars: a daily working time cap, mandatory breaks above certain daily hours, and a minimum daily rest period. Breach can mean fines of up to EUR 30,000 per violation, or in severe cases criminal penalties (Sections 22 and 23 ArbZG). It applies to all employees, with narrowly defined exceptions (senior executives, chief physicians, certain industries).

#The Core Rules

#Section 3 ArbZG: Daily Working Time Cap

• Regular cap: 8 hours per working day
• Extension: up to 10 hours allowed if the average over six calendar months or 24 weeks stays at 8
• Working day: Monday through Saturday (Saturday counts legally)
• Net effect: 48-hour standard week, 60-hour peak week with compensating dips

#Section 4 ArbZG: Rest Breaks

• After 6 hours of work: at least 30 minutes break
• After 9 hours of work: at least 45 minutes break
• Can be split into intervals of at least 15 minutes each

A "break" under the law requires full release from work duties. A coffee at the desk does not count.

#Section 5 ArbZG: Daily Rest Period

• At least 11 consecutive hours between end of one workday and start of the next
• Reducible to 10 hours in specific industries (e.g. hospitals, hospitality, transport, agriculture) if the reduction is balanced out by extending another rest period to at least 12 hours within one calendar month or four weeks

#Sections 9 and 10 ArbZG: Sunday and Public Holiday Rest

• Work on Sundays and public holidays is generally prohibited
• Exceptions: emergencies, transportation, hospitality, media production, and other clearly defined sectors
• For each Sunday worked, a substitute day of rest must be granted within the same or following 14-day window

#The BAG Ruling of 13 September 2022

#The Background

A works council (Betriebsrat) demanded that the employer install an electronic time tracking system for all employees. The employer refused, arguing that no such duty existed under German law. The regional labor court of Hamm ruled in favor of the works council. The employer appealed to the BAG.

#What the BAG Decided

In decision 1 ABR 22/21, the Federal Labor Court held:

"The employer is obliged under Section 3(2)(1) of the Occupational Health and Safety Act to introduce a system by which the working time performed can be recorded."

The reasoning: Section 3(2)(1) of the Occupational Health and Safety Act (ArbSchG) requires the employer to provide suitable organization and the necessary means to fulfill occupational safety duties. Combined with the EU Working Time Directive (2003/88/EC) and the European Court of Justice's CCOO decision (Case C-55/18, 14 May 2019), this means: working time for all employees must be documented in an objective, reliable, and accessible manner.

#What This Means in Practice

• The duty applies immediately. The BAG derived the obligation from existing law, not from a future statute. It is in force today.
• All employees, not only overtime. The total daily working time, not only additional hours, must be recorded.
• A system is required. A spreadsheet kept solely by the employee, never reviewed by the employer, falls short of the "reliable" standard.
• Delegation is allowed. Employees can enter their own times; the employer remains responsible for a reliable system.

#The State of Legislation

A draft bill from the Federal Ministry of Labour and Social Affairs (BMAS), dated April 2023, proposes amending the ArbZG to make electronic time tracking the rule and to carve out exceptions for smaller businesses. The draft has been in association consultation since May 2023; no law has been passed as of May 2026. Until that happens, the BAG's reading of existing law governs.

#What a Compliant System Must Deliver

Combining the ArbZG, the ArbSchG, and the BAG ruling, the practical minimum looks like this:

#What Falls Short

• Pure hours-target agreements without actual recording
• "Trust-based" arrangements (Vertrauensarbeitszeit) without any documentation (the BAG clarified: trust-based work models remain allowed, but recording must still happen)
• Records that the employer does not review or safeguard

#Special Populations

#Young Workers (JArbSchG)

The Youth Labour Protection Act caps under-18s at 8 hours a day and 40 hours a week. Stricter break and rest rules apply on top.

#Pregnant Employees (MuSchG)

The Maternity Protection Act limits pregnant employees to 8.5 hours per day (over 18) or 8 hours (under 18). Overtime is generally not allowed.

#Night Workers

Section 6 ArbZG defines night work as work of more than two hours of night time between 23:00 and 06:00. Night workers get a tighter daily cap and a right to regular occupational health checks.

#Senior Executives (Leitende Angestellte)

Section 18(1)(1) ArbZG exempts senior executives. "Senior" is narrowly defined: typically only people with hiring and firing authority at board level. Middle managers are not exempt.

#Steps to Get Compliant

#Step 1: Pick a Recording System

Several systems can meet the requirements, from spreadsheets to dedicated time tracking software to physical clocks. The choice depends on company size, industry, and work model. The three properties that matter: objective (no estimates), reliable (no tampering), accessible (to employees and authorities).

#Step 2: Clarify Responsibility

Who enters the data? Who reviews it? Who reacts when limits are approached? Three or four named people per site is the practical minimum.

#Step 3: Train

Employees need to be able to use the system. A 30-minute training with clear examples is usually enough. A written guide attached to the employment contract, or available on the intranet, anchors it.

#Step 4: Escalate Breaches

When the maximum working time is exceeded, that must be visible and acted on. Automatic warnings that fire before the 10-hour cap is hit work better than after-the-fact review.

#Step 5: Retain

Section 16 ArbZG requires retention of Section 16 records for two years. Payroll retention rules go further (up to six years). A system that stores data immutably simplifies compliance significantly.

#How Timesheet Maps to the ArbZG

Timesheet is not certified as an ArbZG-specific solution, but it covers the practical requirements:

• Start and end times per entry. Every time entry in Timesheet carries concrete start and end times, never just a duration.
• Break recording. Breaks are stored separately, either manually or via automatic break rules.
• Maximum-hours warnings. The HR warnings (Business plan) fire at 80 percent of the daily target and 90 percent of the legal daily maximum.
• Audit log. On the Business plan, every change is logged with timestamp and user.
• Export. An Excel or CSV export of Section 16 records is available on every plan; a PDF report requires the Pro plan or higher.

For the full HR warnings setup, see the dedicated post.

#Common Questions

Does the duty apply to me as a sole trader? No. The duty falls on employers vis-a-vis their employees. Self-employed people without any employees do not fall under the ArbZG.

What if I only employ minijobbers? The full duty applies. The ArbZG has no lower threshold by hours worked.

Are spreadsheets really not allowed? A spreadsheet can meet the minimum if the data is reliable, employer-safeguarded, and protected from tampering. In practice, spreadsheets struggle on the tamper-evidence front; as soon as someone retroactively shifts an hour, the reliability is gone.

What is the penalty for a breach? Breach of the recording duty itself currently carries no direct fine, because the duty is derived from Section 3(2)(1) of the ArbSchG. Breach of the working time caps or break duties in the ArbZG carries fines of up to EUR 30,000 (Section 22 ArbZG). Missing records mainly expose employers to evidence loss in labor disputes.

When does the amendment land? The draft bill has existed since April 2023. No law has been passed as of May 2026. Once passed, a transition period and clearer exceptions for smaller employers are likely.

#Summary

• The ArbZG caps daily work at 8 (exceptionally 10) hours
• Breaks at 6 hours of work are mandatory; so is 11 hours of daily rest
• The 13 September 2022 BAG ruling confirmed a duty to record all working time for all employees
• The recording must be objective, reliable, and accessible
• Special rules apply to young workers, pregnant employees, and night workers
• An amendment to the ArbZG is in the legislative pipeline; the BAG reading governs today

#Sources

• Arbeitszeitgesetz (ArbZG) at gesetze-im-internet.de
• ArbSchG Section 3 at gesetze-im-internet.de
• BAG decision of 13.09.2022, ref. 1 ABR 22/21
• ECJ judgment of 14.05.2019, Case C-55/18 (CCOO)
• BMAS draft bill for the ArbZG amendment, April 2023

#Where to Go Next

• The EU Working Time Directive explained for the European framework that German law derives from
• The ECJ CCOO ruling: why time tracking is mandatory as the historical trigger
• HR warnings: get notified about working time violations as the practical layer