Germany's Arbeitszeitgesetz: The Time Tracking Mandate in 2026

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 confirmed 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

• More than 6 hours of work: at least 30 minutes break
• More than 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 a two-week period that includes the Sunday worked (Section 11(3) ArbZG)

#The BAG Ruling of 13 September 2022

#The Background

A works council (Betriebsrat) wanted to force the introduction of an electronic time tracking system and claimed a right of initiative under Section 87(1) No. 6 of the Works Constitution Act (BetrVG). The employer refused the system and disputed that co-determination right. 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 rejected the works council's application: there is no enforceable right of initiative, because the employer is already obliged by law to record working time. Its press release No. 35/22 put it this way:

"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 by employees 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, proposed amending the ArbZG to make electronic time tracking the rule and to carve out exceptions for smaller businesses. It was discussed within the government but never adopted by the cabinet, and it was not finalized before the parliamentary term ended early. The CDU, CSU and SPD coalition that took office in 2025 agreed in its coalition agreement to regulate the duty of electronic time recording with little red tape, with transition rules for small and medium-sized businesses, and to allow a weekly instead of a daily maximum working time. As of October 2026 there is no bill; according to the federal government, implementation is still being negotiated within the government and there is no timetable. Until a new law takes effect, the BAG's reading of existing law governs, and the daily cap in Section 3 ArbZG still applies.

#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 (according to the BMAS, 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 2(3) and (4) ArbZG defines night work as work of more than two hours of night time between 23:00 and 06:00. Under Section 6 ArbZG, night workers who work up to 10 hours a day must average 8 hours within a shorter period (one calendar month or four weeks), and they have a right to regular occupational health checks.

#Senior Executives (Leitende Angestellte)

Section 18(1)(1) ArbZG exempts senior executives. "Senior" is narrowly defined by Section 5(3) of the Works Constitution Act: for example, people who can hire and dismiss staff on their own authority, hold general power of attorney or Prokura, or regularly carry out key business tasks largely free of instructions. Middle managers are usually 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? Decide for each site who is responsible.

#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, although many keep a work hours tracker for freelancers anyway for billing and their own overview.

What if I only employ minijobbers? The full duty applies. The ArbZG has no lower threshold by hours worked. For minijobs, Section 17 of the Minimum Wage Act (MiLoG) also expressly requires recording the start, end and duration of daily working time by the end of the seventh calendar day after the workday and keeping the records for at least two years (minijobs in private households excepted); breaches carry fines of up to EUR 50,000 (Section 21 MiLoG).

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 derived from Section 3(2)(1) of the ArbSchG carries no direct fine. The labor inspectorate can, however, order recording in an individual case, and ignoring an enforceable order can cost up to EUR 30,000 (Sections 22(3) and 25 ArbSchG). Fines of up to EUR 30,000 apply directly to missing, incorrect or prematurely discarded records under Section 16(2) ArbZG and to breaches of the working time caps, breaks or rest periods (Section 22 ArbZG). Without records, employers also lack evidence when working time is disputed in a labor court.

When does the amendment land? Still open. The April 2023 draft was never passed. In its 2025 coalition agreement, the CDU, CSU and SPD coalition plans electronic recording with transition rules for small and medium-sized businesses, plus the option of a weekly instead of a daily maximum. As of October 2026 the federal government has not adopted a bill, and it says there is no timetable.

#Summary

• The ArbZG caps daily work at 8 (exceptionally 10) hours
• Breaks after more than 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 planned but not yet adopted; 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 questions and answers on working time recording (German)
• Federal government answer on the status of the ArbZG reform, Bundestag plenary record 21/95 of 23.09.2026 (German)

#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