Kimai
Is time tracking mandatory in Germany?
Valentina
@ivalentinaAnyone searching for “time tracking obligation Germany” will find plenty of contradictory information. Some sources say a new law is still being drafted. Others claim the obligation already exists. Both are true, and that’s exactly why so many employers are confused about what they actually need to do now.
Today we’ll try to bring some clarity to the matter (even though we can’t provide legal advice). We’ll explain the legal foundations that already apply today, what will change with the legislative updates in 2026 (and what won’t) – and what happens in practice when a company fails to meet its obligations.
Which laws require employers in Germany to track working hours?
Do employers in Germany have to record working hours? Short answer: Yes. The obligation arises from three overlapping sources that together leave no real doubt. Here’s an overview:
ECJ ruling, May 2019
The European Court of Justice ruled that all EU member states must require employers to introduce a system for daily working time recording. This is the legal foundation of the recording obligation in Germany.
CCOO v. Deutsche Bank (C-55/18)
The Court ruled that EU member states must require employers to “set up an objective, reliable and accessible system enabling the duration of time worked each day by each worker to be measured” in order to ensure the effective enforcement of working time limits and rest period entitlements.
https://curia.europa.eu/juris/document/document.jsf?docid=214043&doclang=D
Federal Labour Court ruling, September 2022 (1 ABR 22/21)
The Federal Labour Court derived an obligation to track working hours directly from § 3 para. 2 no. 1 ArbSchG. Employers must record the start, end, and duration of each employee’s daily working hours. This applies to all employers – from the very first employee, regardless of company size or working model.
The Federal Labour Court ruled that § 3 para. 2 no. 1 ArbSchG already requires employers to record “the start and end of daily working time including overtime.” The obligation arises directly from the applicable law and does not require any further implementing legislation.
https://www.bundesarbeitsgericht.de/entscheidung/1-abr-22-21/
Working Hours Act (ArbZG)
The ArbZG has long required the documentation of working hours that exceed 8 hours per day. The obligation to record overtime has existed in Germany for decades, with direct fines for violations of maximum working hours, rest periods, and break regulations.
“The employer is obliged to record the working time of employees that exceeds the daily working time under § 3 sentence 1 and to maintain a list of employees who have consented to an extension of working time pursuant to § 7 para. 7. The records must be kept for at least two years.”
BMAS – Federal Ministry of Labour and Social Affairs
The BMAS confirmed in its official FAQ that the obligation to introduce a time tracking system already exists today – based on the ArbSchG. The federal government itself describes this as a current obligation, not a future one.
Even “lawyers without management functions” must record their hours
The Hamburg Administrative Court required a large international law firm to record the working hours of its employed lawyers, thereby confirming that the general recording obligation also applies to associates – that is, employed lawyers without management functions.
See Judgment VG Hamburg II – November 2025
What changes in 2026 (and what doesn’t)
The coalition agreement between CDU/CSU and SPD from April 2025 explicitly provides for making electronic time tracking mandatory “without bureaucracy”, with planned transition periods for SMEs. A concrete law is expected for 2026. But here’s the crucial point: this law will not be the one to establish the obligation. It will formalize and digitize an already existing obligation. The recording obligation has been in effect since September 2022. What will be added in 2026 are stricter requirements regarding the type of recording (electronic, tamper-proof, day-accurate) – not whether to record at all.
What fines are at stake in Germany
The fine structure under German time tracking law is somewhat indirect – which is one reason why many employers have underestimated the risk.
Violations of employer obligations under the Occupational Health and Safety Act, including failure to comply with an order from the supervisory authority, can be punished with fines of up to €25,000.
Here’s how it works in practice:
| Scenario | Legal basis | Penalty |
|---|---|---|
| Working hours over 8 hrs/day not recorded | § 16 para. 2 + § 22 para. 1 no. 9, para. 2 ArbZG | Up to €30,000 per violation |
| Maximum working hours or rest periods violated | § 22 ArbZG and § 23 ArbZG | Up to €30,000 per violation; for intentional/repeated violations endangering health: criminal liability, up to 1 year imprisonment |
| Administrative order ignored | § 25 para. 2 ArbSchG | Fine according to ArbSchG catalogue; can accumulate across all employees over 24 months |
Because the fine for merely lacking a system applies indirectly (it only kicks in after an ignored administrative order), many companies have assessed the risk as theoretical. The cases cited above show: it isn’t.
FAQ
Is electronic time tracking mandatory in Germany?
Not yet – but it’s coming. Under current law (BAG ruling 2022), any reliable method is permitted: paper, spreadsheet, or software. The BMAS draft bill and the 2025 coalition agreement plan to make electronic recording mandatory, presumably starting in 2026, with transition periods for smaller companies. Micro-enterprises (up to 10 employees) may receive additional time. Whether an Excel spreadsheet qualifies as “electronic” within the meaning of the future law has not yet been conclusively clarified. The safer route: dedicated software.
Can companies in Germany use Excel for time tracking?
Yes, under current law. The BAG ruling does not prescribe a specific format. Paper timesheets, Excel, or dedicated software all fulfill the existing obligation. However, the upcoming law is expected to require electronic, tamper-proof recording. Whether Excel qualifies as “electronic” is still legally unclear. On top of that: Excel records are difficult to audit, easy to edit, and create exactly the documentation gaps that cause problems during regulatory inspections. Dedicated tools like Kimai are significantly safer for compliance.
What are the requirements for working time recording in Germany?
According to the BAG ruling and the ArbZG, the start, end, and duration of each employee’s daily working hours must be recorded – ideally on the same day. Breaks should also be documented (mandatory for shifts longer than 6 hours). Records must be kept for at least 2 years. Authorities can audit the last 24 months retroactively. A specific software is not yet prescribed, but the records must be reliable, accessible, and verifiable.
What happens if you don’t record working hours in Germany?
There are three consequences – in escalating order. First, a labour authority may show up and request records going back up to 24 months. Second, a formal order is issued. If this is ignored, fines under § 25 ArbSchG apply. Third, without time records, there is no evidence to defend against overtime claims, rest period violations, or labour court proceedings. The hidden costs of this third scenario often exceed the fines themselves.
Does the BAG ruling also apply to companies with trust-based working time?
Yes. Trust-based working time remains permitted, but does not exempt employers from the recording obligation. Flexibility is allowed; invisibility is not. Employees record their hours themselves, but the employer is responsible for ensuring that this happens and that the records are accurate.
Do the German overtime recording rules apply to all employees?
Yes. The BAG ruling applies to all employees, including remote workers, part-time workers, and employees with flexible working hours. Executive employees are exempt from the recording obligation. Associates and senior associates in law firms, however, do not fall under the definition of executive employees and are therefore subject to the recording obligation (Hamburg ruling of November 2025). Only solo self-employed individuals without their own employees are fully exempt.
Take action now
The legal picture is clear: the obligation applies now, enforcement is real, and the requirements will continue to tighten. The good news: compliance doesn’t have to be complicated.
Digital tools like Kimai – a free open-source time tracking app – are made exactly for this. They record the start and end of working time, generate audit-proof reports, support any team size, and deliver the tamper-proof documentation that withstands a regulatory audit. Whether a small team, a mid-sized company, or an international corporation: Kimai provides legally secure, future-proof proof – with no upfront costs.