Digital time-tracking obligation planned for many industries
A reform raises the minijob threshold and tightens documentation: mandatory digital time tracking is planned for many companies.
The draft from labour minister Heil
The reform raises the minijob threshold from €450 to €520 (from 1 October 2022), tracking the new minimum wage of €10.45 from 1 July 2022. The keep ratio of wage-to-time stable, the threshold is raised.
It also brings stricter documentation: minister Heil plans mandatory time tracking for many companies.
Affected: all industries listed in the German Act on Combating Illegal Employment (SchwarzArbG), with the rules also to be adopted into AentG and AÜG (sectors with posted or hired workers).
Mandatory digital recording
Companies are to record the start, end and duration of daily working time electronically and tamper-proof. Aim: prevent minimum-wage manipulation and implement the 2019 EuGH ruling on general time tracking in select industries first.
Currently, working time must be documented within 7 days, also on paper. The new draft excludes paper recording — companies must record times digitally on a permanent basis.
Reporting obligation and fines
A planned extension of the German Trade Code (GewO) requires employers to make recorded working times available electronically at the end of each billing period. Missing or inadequate recording becomes an administrative offence punishable by a fine.
Reactions
Many industry associations object. The construction sector points to 3.4 million people working decentrally — at least 700,000 mobile devices would have to be procured. Cleaning sector representatives raise similar concerns; private mobile phones are off-limits for data-protection reasons. Even minor overshoots of the maximum working time would make minijobs subject to social-insurance contributions.
The FDP voiced surprise; the coalition agreement focused on better enforcing existing rules rather than creating new ones. Construction associations argue the draft creates more red tape than it removes.
Outlook
Whether the criticism reshapes the reform is open. What seems clear is that comprehensive time tracking will come — the principle was settled by the EuGH in 2019; only the national transposition is pending.
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