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Record-Keeping Obligation in Germany: What the Working Hours Act Really Requires

19. May 2026 · HR Tech, Legal & Compliance, Time Tracking, Working Time Regulations

Record-Keeping Obligation in Germany: The Current Legal Situation

For a long time, the rule in Germany was that working hours only had to be recorded in specific cases – for example, time worked beyond eight hours per working day (§ 16(2) ArbZG) or for mini-jobs and in certain sectors (§ 17 of the Minimum Wage Act, MiLoG). This changed fundamentally with a landmark decision of the Federal Labour Court (Bundesarbeitsgericht, BAG).

The decision of 13 September 2022 (1 ABR 22/21) obliges employers to set up a system that records the entire working time of their employees. The BAG derives this duty from the German Occupational Health and Safety Act (§ 3(2) no. 1 ArbSchG, interpreted in the light of the CJEU judgment C-55/18). Compliance is monitored by the occupational health and safety authorities of the German federal states.

BAG ruling on working time recording (in substance): Employers are obliged to introduce a system that records the start and end, and thus the duration, of working hours including overtime. Trust-based working hours remain possible – but they do not exempt employers from recording.

Violations of the recording obligations under the Working Hours Act (ArbZG) and the Minimum Wage Act (MiLoG) are administrative offences and can be punished with fines. For the general recording duty under the ArbSchG, the authority can first order the introduction of a system – anyone who ignores such an order also risks a fine.

What Must Be Recorded According to the Working Hours Act?

Which working hours must be documented follows from the Working Hours Act, the Minimum Wage Act and case law. The requirements have become considerably stricter as a result of the BAG decision.

Mandatory Information under ArbZG and BAG Ruling

✅ Start of daily working time (time of day)
✅ End of daily working time (time of day)
✅ Duration of working time (in hours and minutes)
✅ Overtime beyond the agreed working hours

The records should also make it possible to check compliance with rest breaks (§ 4 ArbZG: at least 30 minutes for more than 6 hours, at least 45 minutes for more than 9 hours), the rest period of at least 11 hours between two working days (§ 5 ArbZG) and maximum working hours (§ 3 ArbZG: 8 hours per working day, up to 10 hours with compensation). For work on Sundays and public holidays, a substitute rest day must be granted (§ 11 ArbZG) – which can also only be proven with proper records.

Existing Statutory Record-Keeping Obligations

Irrespective of the BAG ruling, specific obligations have applied for a long time:

§ 16(2) ArbZG: Working time exceeding eight hours per working day must be recorded; the records must be kept for at least two years.
§ 17 MiLoG: For mini-jobbers and employees in the sectors listed in § 2a of the Act to Combat Undeclared Work (e.g. construction, hospitality, building cleaning), the start, end and duration of daily working time must be recorded by the end of the seventh calendar day after the working day and kept for at least two years.
Young people: For employees under 18, the German Youth Employment Protection Act also applies.

Who Is Affected by the Record-Keeping Obligation?

The record-keeping obligation applies to all employers in Germany – from small businesses to large corporations. The BAG ruling has made it clear that the previous practice of recording only certain groups of employees is no longer sufficient.

Which Employees Are Subject to the Obligation?

✅ Full-time employees
✅ Part-time employees
✅ Marginal employees (mini-jobs) – already required by law for a long time
✅ Trainees
✅ Interns
✅ Working students
✅ Employees working from home or mobile working
✅ Seasonal workers and temporary staff

Are There Any Exceptions?

Exceptions mainly concern people to whom the Working Hours Act does not apply or who are not employees at all:

Senior executives within the meaning of § 5(3) of the Works Constitution Act (BetrVG) (§ 18(1) ArbZG – a very limited group)
Managing directors and board members, who as members of a corporate body are generally not employees under working time law

Important: The term "senior executive" is interpreted very narrowly. Heads of department or team leaders are generally not covered – what counts is the actual function, not the job title.

What Penalties Apply in the Event of Violations?

The occupational health and safety authorities of the federal states (depending on the state, e.g. the trade supervisory office or the occupational safety office) monitor compliance with the Working Hours Act; records under the Minimum Wage Act are checked by German customs (Financial Control of Undeclared Work, FKS). Violations are punished as administrative offences or, in serious cases, as criminal offences.

Missing or unretained records under § 16(2) ArbZG: administrative offence, fine (§ 22 ArbZG)
Missing records under § 17 MiLoG: administrative offence, fine (§ 21 MiLoG)
Exceeding maximum working hours, breaching rest periods or Sunday rest: administrative offence, fine (§ 22 ArbZG)
No recording system despite an official order: fine under the Occupational Health and Safety Act
Intentional endangerment of health or persistent repetition: criminal offence (§ 23 ArbZG)

Practical note: The occupational health and safety authorities of the federal states take different approaches. Advice or an order often comes first, before fines are imposed. You should not rely on this – and in a dispute about overtime, only proper records will help you.

How Must Working Hours Be Recorded in Germany?

The Working Hours Act does not prescribe a specific form of time recording. According to the BAG, recording does not necessarily have to be electronic, and it can also be delegated to employees. The standard is set by the CJEU judgment of 14 May 2019 (C-55/18), on which the BAG relies:

The Three Core Principles of Reliable Time Recording

Objective: Recording must be based on actual times, not on estimates or flat-rate figures.
Reliable: The data must be correct, complete and traceable. Subsequent changes should be identifiable.
Accessible: The authorities, the works council (if any) and the employees themselves should be able to view the data.

Permissible Recording Methods

In principle, various methods are possible:

📱 Digital time tracking systems (app, software, terminal)
🕐 Electronic time clocks
📝 Handwritten timesheets (filled in promptly)
💻 Excel spreadsheets (maintained promptly, with changes traceable where possible)

However, not all methods meet the requirements for objectivity and reliability equally well.

Paper vs. Excel vs. Digital Time Tracking – A Compliance Comparison

Requirement	Paper timesheets	Excel spreadsheets	Digital time tracking
Objective recording	⚠️ Often retrospective – problematic	⚠️ Manual entry – error-prone	✅ Clocked at the actual time
Reliability	❌ Illegible, incomplete	⚠️ Formula errors possible	✅ Automatic calculation
Accessibility	⚠️ Physically available	✅ Digitally available	✅ Accessible online at any time
Protection against manipulation	❌ No change history	❌ Can be freely changed without protection	✅ Hard to manipulate, corrections traceable
ArbZG break rules	❌ Manual monitoring	⚠️ Formula required	✅ Automatic according to configured rules
Maximum working time check	❌ Retrospective review	⚠️ Manual calculation	✅ Automatic evaluation
Retention (at least 2 years under ArbZG/MiLoG)	⚠️ Physical storage	✅ Digital, but backup needed	✅ Central storage with backup
Works council access	❌ Cumbersome	⚠️ Manual sharing	✅ Role-based access
Compliance risk	🔴 High	🟡 Medium	🟢 Low

Checklist: How to Fulfil the Record-Keeping Obligation in Germany

Check your current time recording against this checklist:

✅ System Requirements

☐ A working time recording system is in place and actively used
☐ All employees (except those demonstrably exempt) are covered
☐ The system records actual working hours (also with trust-based working time)
☐ Prompt recording is ensured (not retrospectively at the end of the month)

✅ Completeness of Data

☐ The start and end of every shift are recorded
☐ Breaks for more than 6 hours of work are documented (min. 30 min.)
☐ Breaks for more than 9 hours of work are documented (min. 45 min.)
☐ Overtime beyond the agreed working hours is shown
☐ Work on Sundays and public holidays is documented separately
☐ Night work is marked

✅ Protection Against Manipulation

☐ Subsequent changes are either impossible or logged
☐ There is a change history (who changed what and when)
☐ Employees cannot change their own data unnoticed

✅ Accessibility

☐ Employees can view their own working hours
☐ The works council (if any) has access to relevant data
☐ Records can be presented during inspections

✅ Retention and Data Protection

☐ Records are kept for at least 2 years (§ 16(2) ArbZG, § 17 MiLoG)
☐ For digital systems: a backup strategy is in place
☐ Access is role-based (data protection under the GDPR)
☐ Employees have been informed about data processing

Works Council and Co-Determination in Time Recording

In Germany, the works council has a right of co-determination in the introduction and use of technical time recording systems (§ 87(1) no. 6 BetrVG). Whether working time is recorded, however, is set by law – according to the BAG, the works council has no right of initiative on that. It does have a say in how it is done.

What Does This Mean in Practice?

A technical time recording system may only be introduced with the works council's consent
In practice, a works agreement is usually concluded
The works agreement governs: recording method, data access, storage period, purpose of use
In the event of disagreement, the conciliation board decides

Practical tip: Involve the works council at an early stage. Jointly developed solutions are better accepted by employees and lead to fewer conflicts. A good works agreement creates clarity for all parties.

What Happens During an Inspection by the Trade Supervisory Authority?

The competent occupational health and safety authorities of the federal states (depending on the state: trade supervisory office, occupational safety office, etc.) carry out company inspections – also unannounced. In sectors with recording duties under the Minimum Wage Act, customs also carry out checks.

What Is Inspected?

Existence of a recording system: Is there a functioning system at all?
Completeness: Are all mandatory details recorded?
Timeliness: Is recording done promptly or retrospectively?
Compliance with maximum working hours: Is the 8-hour or 10-hour limit observed?
Break rules: Are the statutory breaks granted?
Rest periods: Are the 11 hours of rest between working days observed?
Sunday work: Is it permissible and are substitute rest days granted?

Possible Consequences

In the event of violations, the authority can:

advise and set deadlines for remedial action
issue orders, e.g. to introduce a recording system
impose fines
file a criminal complaint (for intentional endangerment or persistent repetition, § 23 ArbZG)

Digital Time Tracking: The Safest Path to Compliance

Modern digital time tracking systems help you meet the statutory requirements in everyday practice. The key advantages:

Support with Compliance

✅ Objective real-time recording: Times are clocked at the actual moment
✅ Automatic break calculation: Breaks are applied according to the configured rules
✅ Overtime at a glance: Overtime and working time balances are calculated automatically
✅ Traceable corrections: Digital records are much harder to manipulate than paper or Excel
✅ Role-based access: Works council, employees, managers – everyone only sees what they are allowed to see
✅ Automatic backup: Data is stored centrally and will not be lost

Particularly Important for Mobile Teams

When employees work on construction sites, at client premises, in the field or from home, mobile time tracking via app is particularly useful:

📱 Time tracking via smartphone (iOS and Android)
🌐 NFC clock-in even without signal (clock-ins are transmitted later)
🗣️ Multilingual support for international teams (e.g. Albanian, Bulgarian, Croatian, Czech, Danish, Dutch, English, Finnish, French, Georgian, German, Greek, Hungarian, Italian, Latvian, Macedonian, Norwegian, Polish, Portuguese, Romanian, Russian, Serbian, Slovak, Somali, Spanish, Swedish, Turkish and Ukrainian)
📍 Location captured at clock-in (no continuous tracking)
🏷️ NFC check-in at work sites
📧 Login without an e-mail address – ideal for blue-collar staff

Common Mistakes in Working Time Recording

❌ Mistake 1: "We Are Still Waiting for a Legislative Clarification"

Many companies are waiting for a reform of the Working Hours Act to settle the details. That is risky: the duty arising from the BAG decision already applies now. Those who wait risk official orders – and have no evidence in a dispute about overtime.

❌ Mistake 2: Trust-Based Working Hours Without Any Monitoring

"Our employees work on their own responsibility" – that is not a free pass. Even with flexible models, the actual working time must be documented.

❌ Mistake 3: Flat-Rate Recording Instead of Actual Hours

"8 hours per day" as a standard entry is not enough. The hours actually worked must be recorded, even if they deviate from the norm.

❌ Mistake 4: Missing Works Agreement

In companies with a works council, a technical time recording system may not be introduced without its consent – in practice this is done through a works agreement. Without it, the introduction violates co-determination rights, with corresponding legal consequences.

❌ Mistake 5: No Retention of Records

Under § 16(2) ArbZG and § 17 MiLoG, the records required there must be kept for at least 2 years. Older data must also be available during inspections.

❌ Mistake 6: Excel Without Versioning

Excel spreadsheets that can be overwritten at will are easy to challenge. It should be traceable who changed what and when.

Conclusion: The Record-Keeping Obligation Is Coming – or Is Already Here

The legal development in Germany is clear: the BAG already obliges employers to record working time in full. Regardless of when and how the legislator amends the Working Hours Act – the obligation exists.

Anyone still relying on paper timesheets or trust-based working hours without any monitoring takes considerable risks:

Fines and official orders
Liability for exceeding working time limits
Conflicts with the works council
Problems of proof in overtime claims

The good news: with a well-thought-out digital system, complying with the record-keeping obligation is not a big effort. Modern solutions take a lot of routine work off your hands and noticeably reduce the administrative workload.

Three key takeaways:

The obligation applies now: The BAG decision is decisive, even without a new law.
Digital solutions are safer: They support you in meeting the requirements for objectivity, reliability and accessibility.
The works council must be involved: Technical time recording is subject to co-determination – early coordination avoids conflicts.

Check your current time recording with the checklist in this article – and close compliance gaps before the authorities find them.

Meet the record-keeping obligation with ease

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Frequently asked questions

Is time tracking mandatory in Germany?

Yes. Following the decision of the Federal Labour Court (BAG) of 13 September 2022 (1 ABR 22/21), employers in Germany are required to introduce a system that records the entire working time of their employees. The BAG derives this duty from the Occupational Health and Safety Act (§ 3(2) no. 1 ArbSchG). Trust-based working hours remain possible, but do not exempt employers from recording.

What penalties are faced for failing to record working hours?

Penalties depend on national law. In many countries – Germany and Austria, for example – missing working time records can lead to fines imposed by the labour authorities. On top of that, without records it is hard to rebut overtime claims. Complete digital recording, such as with Jobilino, helps to reduce this risk considerably.

Does the recording obligation also apply to part-time employees and mini-jobbers?

Yes, in Germany the recording obligation applies to all employees – full-time, part-time, mini-jobs, casual workers, interns and working students. For mini-jobs, the recording obligation under § 17 MiLoG already existed before the BAG ruling. The main exception is senior executives within the meaning of § 5(3) BetrVG (§ 18 ArbZG) – a very small group of people.

Does the works council have to approve the time-tracking system?

For technical time-tracking systems, yes: in German companies with a works council, the council has a right of co-determination in their introduction and use (§ 87(1) no. 6 BetrVG); such a system may not be introduced without its consent. Whether working time is recorded at all, however, is set by law – according to the BAG, the works council has no right of initiative on that. As a rule, a works agreement is concluded that governs the recording method, data access and purpose of use.

Is a spreadsheet sufficient for time tracking?

In Germany, Excel is generally permitted – the law does not prescribe a specific form, and according to the BAG recording does not have to be electronic. What matters is that the spreadsheet is kept up to date promptly. Without change protection or versioning, however, spreadsheets are easy to challenge. Digital time-tracking systems make corrections traceable and are much harder to manipulate.

How long must working time records be retained in Germany?

Records under § 16(2) ArbZG (working time exceeding eight hours per working day) and under § 17 MiLoG (mini-jobs and certain sectors) must be kept for at least two years. With digital systems, automatic backups should be set up to prevent data loss.

What does the trade supervisory authority check during a working time inspection?

The occupational health and safety authority of the German federal state (e.g. the trade supervisory office) checks whether a time-tracking system exists, whether all mandatory details are recorded (start, end, duration), whether maximum working hours, breaks and rest periods are observed and whether records are made promptly. Records under the Minimum Wage Act are also checked by customs. Keep the documents ready so that you can present them during an inspection.

Does the recording obligation also apply when working from home?

Yes, the recording obligation applies regardless of the place of work. Whether working from home, on construction sites, at a client's premises or in the field, the start, end and duration of working hours must be documented. An app-based mobile time-tracking solution is particularly practical here, as employees can record their hours directly on site.

Can employees waive time tracking?

No, the recording obligation is a statutory duty of the employer that cannot be waived – not even by mutual agreement with the employee. Even if employees work on a trust basis, their actual working hours must be documented.

When will the new working time recording law come into effect?

A reform of the German Working Hours Act with specific rules on time recording has been announced politically for years – check the current status before relying on details. Regardless of that, the obligation arising from the BAG decision of 13 September 2022 already applies to all employers today. Those who wait for a new law risk official orders and problems of proof in overtime disputes.