Few topics cause as much uncertainty in small and mid-sized businesses in Germany as working time recording. Is it mandatory? Since when? Is paper enough? And what will the announced reform change? This post summarises the situation as of late October 2026.
Note: we are software developers, not lawyers. This post is not legal advice.
What already applies: the obligation has existed since 2022
On 13 September 2022 the German Federal Labour Court ruled (1 ABR 22/21) that employers must systematically record their employees' working hours. The court derived this from the Occupational Health and Safety Act, interpreted in line with case law of the European Court of Justice.
In practice this means:
- The obligation applies to every business, regardless of size.
- Start, end and breaks of daily working time must be recorded.
- No specific form is currently required – paper, spreadsheets or an app are all acceptable, as long as the records are reliable and complete.
- The employer remains responsible, even if employees record their own hours.
- Trust-based working time is still possible – but it does not remove the obligation to record.
What the reform proposes: the June 2026 draft
In mid-June 2026 a draft bill (Referentenentwurf) from the Federal Ministry of Labour became public. According to the reports available to us, it was still in coordination between ministries – changes are considered likely. Key points of the draft:
- Electronic recording as the default, normally on the same day; no specific technology is prescribed.
- Staggered transition periods after entry into force: one year in general, two years for employers with fewer than 250 employees, five years for fewer than 50.
- Exemption for very small businesses: employers with up to ten employees could keep non-electronic records permanently – but would still have to record.
- Retention and access: records kept for at least two years; employees can request information and a copy.
- Weekly instead of daily maximum hours – only via collective agreement. Businesses without a collective agreement would keep the daily model.
Reports on the draft mentioned 1 January 2027 as the planned date of entry into force. Whether that holds remains open.
What businesses should do now
- Take stock: how are hours recorded today, who checks them, how do they reach payroll?
- Close gaps: are breaks recorded? Are there employees whose hours are not documented at all?
- Check the rules: are maximum hours, breaks and rest periods actually respected?
- Involve the works council where there is one.
- Choose a solution that fits daily work: an app with offline mode for field staff, a time-clock terminal for workshops.
- Think about payroll: the real time saving comes when recorded hours reach your accountant without retyping.
We built our own time tracking product, Floowa, for exactly these requirements: electronic recording via browser, app or terminal, automatic checks for breaks, maximum hours and rest periods, a complete audit log and export for the tax accountant. Where a standard product is not enough, we build custom solutions and integrations.
Sources: BAG, decision of 13 Sep 2022 – 1 ABR 22/21 · IHK Rhein-Neckar · Stein Rechtsanwälte on the draft (14 Jul 2026) · Handwerksblatt on the new Working Hours Act
