Objective
- The actual times are recorded, not an estimate at the end of the month.
- Start, end and duration are captured when clocking in, not from memory.
- The system factors in breaks according to the rules configured.
The time-tracking obligation applies today, not only once the new law arrives.
Since the Federal Labour Court ruling of September 2022, every employer in Germany must record the start, end and duration of working time. A planned law additionally mandates the electronic form. We set out what applies, what is coming and who is affected.
Legal status
The obligation has been in force since the 2022 ruling.
Many companies are waiting for a law. Yet the obligation to record working time has long applied, established by Germany's highest labour court.
- 2019ECJ C-555/19 foundation
Member states must require recording
The Court of Justice rules that employers need an objective, reliable, accessible system to measure daily working time.
- 2022Federal Labour Court · 1 ABR 22/21 in force
The duty applies to every employer
Under § 3 (2) no. 1 ArbSchG, read in line with the ECJ, German employers must already record working time.
- today§ 3 ArbSchG in force
Record start, end and duration
Beginning, end and total of the daily working time have to be captured for the whole workforce.
- 2026ArbZG reform · draft bill planned
Electronic recording, planned
A planned amendment makes electronic recording mandatory, with transition periods staggered by company size.
The duty is not coming, it is here. What changes in 2026 is the form, not the obligation.
What applies
Every employer must record working time.
A time-tracking obligation is the employer's legal duty to record their employees' working time: when it begins, when it ends and how long it lasts.
In Germany this obligation does not wait for a new law. The Federal Labour Court ruled on 13 September 2022 (case reference 1 ABR 22/21) that employers must already introduce a system to record total working time. The basis is section 3(2) no. 1 of the Occupational Health and Safety Act (Arbeitsschutzgesetz), interpreted in the spirit of the ECJ ruling C-555/19 from 2019.
What must be recorded is the start, end and duration of daily working time, for the entire workforce. How a company implements this is not prescribed by the court. What matters is that the record is created objectively and reliably. An Excel cell that can be overwritten without trace does not meet this standard.
Requirements
What a recording system must deliver.
The European Court of Justice names three properties that a working-time recording system must have.
Reliable
- Every entry carries a timestamp.
- Corrections remain traceable, together with the person who made them.
- Nothing can be overwritten in secret.
Accessible
- Employees can see their own times at any time.
- Managers and the payroll office access the checked record.
- A complete report is available for audits.
“Time tracking is far simpler and more convenient than in Excel.”
Industries
Construction, hospitality and logistics have documented strictly for longer.
Regardless of the general recording obligation, some industries have had to document more strictly for years. Section 17 of the Minimum Wage Act (Mindestlohngesetz) requires the economic sectors named in the Act on Combating Illegal Employment to record the start, end and duration of daily working time. The record must be available within seven days and kept for two years.
These include, among others:
- Construction
- Hospitality and accommodation
- Passenger transport
- Freight forwarding, transport and related logistics
- Showmen's trade and forestry
- Building cleaning as well as trade-fair and exhibition construction
- The meat industry
- Security and guarding services
The same obligation applies to marginally employed staff (minijobs) and to companies that hire out or post workers. Anyone who fails to keep proper records here risks a fine of up to 30,000 euros under section 21 of the Minimum Wage Act.
In figures
The obligation in four key figures.
What the time-tracking obligation means in practice can be read from a few figures, from the landmark ruling to the range of fines.
- 2019
ECJ ruling
Landmark decision on working-time recording (C-555/19)
- 2022
applies to all
Federal Labour Court decision 1 ABR 22/21 of 13 September
- 30.000 €
fine of up to
under section 21 MiLoG in the affected industries
- 7 days
deadline to record
in the industries under section 17 of the Minimum Wage Act
In practice
Building sites and field teams can record cleanly too.
The biggest worry in the debate about the obligation is not whether, but how. Associations from the construction and building-cleaning sectors point to their distributed work: employees are spread across building sites and premises, so a fixed terminal at the entrance is of little help to them.
This is exactly where cloud-based time tracking comes in. Recording happens in the way that suits the workplace: in the browser at the desk, through the installable web app while out and about, or on a tablet that serves as a clocking terminal at the entrance. The place of work is captured through categories, for example office, home office or external work.
Data protection can be maintained too. Instead of requiring private mobile phones, recording runs through the company application. And anyone working with trust-based working time keeps the flexibility: what is recorded is the time worked, not a rigid schedule.
Intro call
Does your current recording already meet the obligation?
Unsure whether your current solution meets the requirements? In 15 to 30 minutes we look at your recording setup together and tell you where you stand.
With teamspace
teamspace records every entry so it stays traceable.
Start, end and break
Every entry is recorded with the person and a timestamp.
- The system factors in breaks according to configured rules.
- Target vs. actual per day, premiums via attendance categories.
- Attendance and project time from a single record.
Record on any device
Browser, installable web app or a tablet as a clocking terminal.
- The place of work is captured through categories.
- Mobile-optimised for field teams and building sites.
- At the terminal, an RFID card can replace typing.
Nothing changed in secret after the fact
Corrections stay visible, and locking seals the checked times.
- The editing window can be set freely per person.
- Locking manually, centrally or in the monthly run.
- Kept in an audit-proof way in the optional GoBD mode.
More use cases
What recorded times feed into as well.
Once working time is recorded cleanly, it turns into records, invoices and reports, all in the same system.
Log project hours
Hours on project, phase and task, split into billable or internal.
Learn moreActivity record
An hours record per engagement as a PDF at the click of a button.
Learn moreDigital timesheet
Booked times assemble themselves for approval and are then locked.
Learn moreTrack overtime
Target vs. actual live, premiums by agreement, payout or time off in lieu.
Learn moreManage leave and sickness
Request and approve absences and offset them in the time account.
Learn moreRecord times via check-in
Clock in and out at the terminal, in the app or in the browser.
Learn more
Part of time tracking online
Recording is the core of the whole of time tracking.
Attendance and project times, timesheets, activity records and absences all run in the same system. A single record feeds the time account, the project report and payroll preparation at once. The overview page shows how the whole module fits together.
Go to time tracking onlineOutlook
Record cleanly today and you are ready for the law.
The planned law reforming the Working Hours Act (Arbeitszeitgesetz) will make electronic recording binding. Under the ministerial draft from the Federal Ministry of Labour, employers are to record the start, end and duration of daily working time electronically on the day the work is performed. Exemptions and transition periods staggered by company size are envisaged for small businesses.
A firm date for entry into force has not yet been set. The direction is clear. Anyone already recording working time digitally and traceably today will not have to change anything on the cut-off date. A spreadsheet that someone adds up at the end of the month meets neither today's nor the coming requirement.
The pragmatic path runs through three steps: switch daily recording to a system that captures start, end and duration automatically; document corrections with the person and a timestamp; and lock approved times so the record can no longer be changed.
This article gives an overview as at June 2026 and is no substitute for legal advice. In case of doubt, employment-law advice will clarify the exact scope of your obligations.
Related modules
Three modules build on the recorded time.
Recorded working time turns into project metrics, invoices and payroll data, without anyone retyping a thing.
Project management
Booked hours land on project and phase and drive plan vs. actual, contribution margin and utilisation.
- Booking on project, phase and task
- Plan vs. actual and contribution margin up to date daily
- Utilisation per person and team
Invoicing software
Approved hours become the basis for invoices without any export, with hourly rates, flat rates and travel expenses.
- Partial, interim and final invoices
- ZUGFeRD and XRechnung
- Handover to DATEV Unternehmen online
HR software
Hours, overtime and absences flow to the payroll office ready-prepared, without double entry.
- Export payroll data ready-prepared
- Leave and sickness in the same system
- Overtime accounts per employee
Frequently asked questions on the time-tracking obligation
Does the time-tracking obligation already apply now, or only with the new law?
It already applies. On 13 September 2022 the Federal Labour Court ruled (1 ABR 22/21) that employers must already introduce a system to record working time, on the basis of the Occupational Health and Safety Act and the ECJ ruling C-555/19 of 2019. The planned law additionally regulates the electronic form.
Which details do I have to record?
The start, end and duration of daily working time, for all employees. Breaks are part of this, because they determine the duration. How much detail is recorded beyond that is left to the company.
Does time tracking have to be electronic already today?
No. The electronic form is only provided for in the planned law. Today, what counts is that the recording is objective and reliable. In the industries under section 17 of the Minimum Wage Act, additional documentation duties apply, such as recording within seven days.
Does the obligation also apply to trust-based working time?
Yes. Even with trust-based working time, the hours worked must be recorded. Trust-based work concerns the free scheduling of time, not a waiver of the record. Exemptions are provided for senior executives; the planned law regulates the exact scope.
What happens if I do not record working time?
Missing or inadequate records can be penalised as an administrative offence. In the industries under the Minimum Wage Act, fines of up to 30,000 euros are possible. Regardless of that, missing records make it harder to prove your case in audits and in disputes over overtime.
Is an Excel spreadsheet enough for time tracking?
An Excel spreadsheet can hold times, but it often fails on reliability: cells can be overwritten without a trace, and discrepancies only surface late. A record that documents every change with the person and a timestamp is on the safe side.
Does teamspace meet the time-tracking obligation?
teamspace supports time tracking in the spirit of the ECJ ruling C-555/19 and the Federal Labour Court decision 1 ABR 22/21: start, end, breaks and corrections are recorded in full with the person and a timestamp and can be locked. Whether a company thereby meets all requirements also depends on its organisational processes; we do not warrant blanket compliance.
Let's sort out your time tracking in 15 minutes.
We look at your current recording setup, your industry and your interfaces to payroll and invoicing. Afterwards you know what the obligation means for your business and what a digital route looks like.