The Mandate for Time Tracking in Germany: What Employers Need to Know
Since the Federal Labor Court ruling in September 2022, all employers in Germany are required to meticulously track working hours, a mandate affecting companies of every size. This requirement is rooted in the German Occupational Health and Safety Act, aligning with EU law to ensure employee welfare. Employers must record the full working day, capturing start and end times, as well as breaks and overtime. Non-compliance can result in fines up to EUR 30,000.
Understanding this mandate is critical for compliance. While manual methods like Excel or paper timesheets are currently acceptable, the shift toward electronic recording is anticipated, with proposals suggesting it may become mandatory by 2026. Employers must ensure that the recording system is objective, reliable, and accessible, with records maintained for at least two years. The responsibility for accurate recording ultimately lies with the employer, though tasks can be delegated to employees.