Bakeries to Get Longer Sunday Hours as Germany Overhauls Workplace Rules for 2026-2027

Germany’s labour reform boosts bakery Sunday hours to 8, mandates digital time-tracking for firms with 10+ staff, extends fixed-term contracts, and reignites 40-hour week debate.

The aroma of fresh bread might fill German bakeries for more hours on Sundays from 2027, as the government pushes through a long-awaited change to holiday working time rules. But that’s just one part of a broader labour-law revamp that includes mandatory digital time-tracking, longer fixed-term contracts, and a simmering row over the 40-hour week in the car industry.

Under current law, bakeries can only work employees three hours on Sundays and public holidays. From 1 January 2027, that ceiling will more than double to eight hours. The adjustment to a rule dating from 1996 is backed by the central association of the bakery trade, which notes that the number of bakeries has fallen sharply – from 12,155 in 2015 to 8,659 in 2025. Unions and church organisations have condemned the move, arguing it erodes weekend rest.

Digital time-tracking becomes compulsory for medium-sized firms

The bigger compliance picture for most employers centres on the planned reform of the Working Time Act (Arbeitszeitgesetz), scheduled for 2026. The core change: electronic time recording will be mandatory for any company with ten or more employees. Smaller businesses, with fewer than ten staff, may continue using paper-based systems.

The obligation follows landmark rulings by the European Court of Justice in May 2019 and Germany’s Federal Labour Court (BAG) in September 2022, which established that every employer must operate an objective, reliable and accessible system to record daily working hours. That includes start and finish times, all breaks, overtime and total daily duration – tracked to the minute, whether the work is done in the office, at home or on the road.

“Trust-based working time without documentation has been inadmissible since the BAG ruling,” the article notes. However, the model itself can survive as long as the recording duties are met. Works councils have co-determination rights in designing the system. Records must be kept for at least two years.

Labour inspection authorities will enforce compliance. Violations carry fines. Exceptions are planned for senior executives and very small firms.

The wider reform package: fixed-term contracts, tax breaks and AI

The time-tracking mandate is part of a bundle of measures the government calls the “Programme for Recovery and Employment”. Among the other changes:

• Fixed-term contracts without a material reason will be allowed for up to 48 months – but only until 31 December 2030.
• Higher tax-free bonuses for hourly wages up to €75.
• Tax incentives for workers who switch jobs quickly.
• Easier rules for introducing artificial intelligence systems in the workplace.
• A clampdown on so-called “pre-filled SEs” (company structures that bypass co-determination).

Debate reignites over the 40-hour week

Separately, the automobile industry is discussing a return to the 40-hour week. Critics say that if no wage compensation is offered, it amounts to a hidden pay cut. At Volkswagen, speculation is rife about significant job reductions. Ricarda Lang of the Greens has called for a focus on preserving jobs and producing affordable electric cars instead.

Germany’s labour law is entering a phase of restructuring, balancing digital control, flexibility and competitiveness. The changes, spread across 2026 and 2027, will affect everyone from bakery employees to software engineers.