Temponia blog article

Germany's time tracking law: the obligation is already here

Since the 2022 Federal Labour Court ruling, German employers must already record all working hours. What to log, what the 2026 law adds, and how to comply now.

Germany's time tracking law: the obligation is already here

The ruling that changed everything

Germany's time tracking story begins not with legislation, but with a court decision. In September 2022, the Federal Labour Court (Bundesarbeitsgericht, or BAG) issued a landmark ruling that caught many employers off guard.

The BAG declared that employers in Germany are already obligated to record the working time of their employees. The court based its decision on Section 3(2) no. 1 of the Occupational Health and Safety Act (Arbeitsschutzgesetz, or ArbSchG), interpreting it in line with the 2019 ruling of the Court of Justice of the European Union in Case C-55/18 (CCOO v Deutsche Bank).

The CJEU had ruled that EU Member States must require employers to establish an objective, reliable, and accessible system for recording daily working time. The BAG concluded that this obligation already exists under German law, without the need for new legislation.

This was a significant shift. Before the ruling, many German employers assumed they were only required to record overtime hours beyond the standard eight-hour day. The BAG made clear that all working time must be recorded.

Key takeaway

The obligation is already in effect

Since the September 2022 BAG ruling, every employer in Germany is legally required to record the working hours of their employees. This applies regardless of whether the formal legislation has been passed. The legal basis exists today under the Occupational Health and Safety Act.

The April 2023 draft law: electronic recording on the table

Following the BAG ruling, the Federal Ministry of Labour and Social Affairs (Bundesministerium für Arbeit und Soziales, or BMAS) published a draft law in April 2023 that aimed to formalise the time recording obligation and set clear rules for how it must be done.

The draft proposed amending the Working Time Act (Arbeitszeitgesetz) to require employers to record the start, end, and duration of daily working time for each employee. Electronic recording was set as the standard method.

However, the draft also included a concession for small businesses: companies with 10 or fewer employees would be allowed to use manual (non-electronic) recording methods.

The proposed penalties were substantial. Employers who failed to comply with the recording obligations would face fines of up to €30,000.

Despite the momentum, the draft law stalled. The previous coalition government was unable to bring it to a parliamentary vote before its term ended, leaving Germany in an unusual situation: the obligation to record working time existed through case law, but the specific rules for how to do it remained undefined.

Employee using a digital time tracking application on a laptop in a bright German workspace
Electronic time recording is set to become the legal standard for German employers.

The 2025 coalition agreement: a fresh commitment

The new German coalition government, formed in 2025, addressed the gap directly. The coalition agreement includes a clear commitment to establishing electronic time recording as a legal requirement.

A new draft law is expected to be introduced during 2026. While the exact text has not yet been published, the direction is clear based on the coalition agreement and the earlier BMAS draft.

What the draft law proposes

Expected requirements for German employers

  • What to record: start time, end time, and total duration of daily working time for each employee
  • How to record: electronic recording as the standard method
  • Small business exception: manual recording allowed for companies with 10 or fewer employees
  • Penalties: fines of up to €30,000 for non-compliance
  • Scope: applies to all employers, across all sectors

What this means for German employers right now

The situation in Germany is unusual but unambiguous. Even without formal legislation specifying the method of recording, the obligation itself is already legally binding. The BAG ruling established this in September 2022, and it applies to every employer in the country.

Many employers have been waiting for the formal law before taking action. That is a risky strategy. Labour inspectors and courts can already reference the BAG ruling when assessing whether an employer is meeting its obligations. And once the new law passes, the transition periods are likely to be short.

Steps to take now

  1. Acknowledge the current obligation: the requirement to record working time is not future legislation. It is current law, established by the BAG in 2022.
  2. Assess your current system: if you are relying on paper timesheets, Excel files, or no system at all, you are likely not meeting the standard that the BAG ruling requires.
  3. Move to electronic recording: the direction of the upcoming law is clear. Electronic recording will be the standard. Implementing it now means you will already be compliant when the law passes.
  4. Ensure your system is objective and reliable: the CJEU ruling requires a system that is objective, reliable, and accessible to employees. Self-reported estimates entered days after the fact do not meet this standard.
  5. Communicate with your team: time recording works best when employees understand why it matters and when the tool makes it easy. Choose a system that your team will actually use.

How Temponia helps

Temponia is built to meet exactly these requirements. It provides electronic time recording with a calendar-based interface that makes daily logging fast and intuitive. Employees can record start times, end times, and breaks from any device, whether they are in the office or working remotely.

Every entry is stored securely in the cloud with a full audit trail, giving you the objective and reliable system that both the CJEU and BAG rulings require. Data exports and reporting features make it straightforward to demonstrate compliance during inspections.

For German employers who want to get ahead of the legislation rather than scramble to catch up, Temponia provides a solution you can set up today and rely on when the law takes effect.

Get compliant before the law takes effect

Set up electronic time recording today so your team is ready when Germany's new requirements arrive.

Back to all articles