Time Tracking Law: What Employees and Employers Need to Know Now
The law on time tracking is coming – but what does that mean for you as an employee or employer? We explain the background, shed light on the obligations and provide tips for a smooth implementation.
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The Federal Labor Court has ruled: Employers must systematically record their employees' working hours in the future. This means that an ECJ ruling from 2019 is now also binding in Germany. But what exactly does the so-called Time Recording Act actually say? And what consequences does it have for employees and employers? In this article, we provide clarity and give you an overview of everything you need to know now.
Background: Why is the Time Recording Act coming?
The decision of the Federal Labor Court goes back to a ruling of the European Court of Justice (ECJ) from 2019. The ECJ had ruled that EU member states must oblige employers to set up an objective, reliable and accessible system for recording daily working hours. The background to this is the protection of employees from overwork and unpaid overtime.
In Germany, however, there has been no general obligation to record working hours. Only certain industries, such as construction or nursing, had special regulations. With the current decision of the Federal Labor Court, the ECJ requirement is now also binding for all employers in this country.
What does the Time Recording Act mean specifically?
The core of the Time Recording Act is the obligation for employers to systematically record the working hours of their employees. This means that the start, end and duration of daily working hours must be documented, as must overtime and breaks. And this must be done for each employee individually and on a daily basis.
It is important to note that the law does not prescribe a specific system or technology. It is up to the company to decide whether to use a time clock, app, Excel spreadsheet or paper. What is important is that the records are objective, reliable and accessible to employees and regulatory authorities.
What are the employers' obligations?
The Time Recording Act imposes a number of new obligations on employers. They must:
- introduce and operate a system for recording daily working hours
- inform their employees about the time tracking and instruct them in its use
- document and store the recorded working hours
- ensure compliance with maximum working hours and rest periods
- allow the supervisory authorities access to the records upon request
In the future, violations of these obligations may be punishable by fines. The exact amount has not yet been determined, but experts expect it to be as high as €30,000.
What does this mean for employees?
For employees, the Time Recording Act primarily means more transparency and protection. The systematic documentation of working hours makes it possible to see when and how long they have worked – including overtime and breaks. This can help to avoid unpaid overtime and ensure compliance with working hours and rest period rules.
At the same time, however, time tracking also means a change for many. Familiar freedoms such as flexible coming and going or trust-based working hours could be restricted. This calls for creative solutions and clear agreements between employers and employees.
Tips for implementing in practice
Are you an employer wondering how best to implement the Time Tracking Act? Here are a few tips:
- Choose a system that suits your company. It doesn't have to be the most expensive software – what matters is practicality and acceptance by employees.
- Involve your employees at an early stage. Inform them about the background and goals of time tracking and get their feedback on the specific implementation.
- Training is essential. Make sure that all employees know how to track their times correctly and what rules need to be followed.
- Use the data for efficient personnel planning and capacity management. But always put the protection and privacy of your employees first.
- Stay flexible and adjust. Not every system works perfectly right away. Be open to improvements and find the best way together with your employees.
Conclusion: The Time Recording Act presents employers and employees with new challenges – but it also offers opportunities for more transparency, fairness and efficiency. With the right attitude, good communication and a little creativity, the changeover can be mastered. And who knows – maybe structured time tracking will even become a driving force for a modern, trusting working culture?
