German Employers Face New Compliance Era: Electronic Time Logs, Higher Safety Thresholds, and Partial Sick Leave
23.06.2026 - 19:16:52 | boerse-global.de
Germany’s labour landscape is shifting on multiple fronts. A draft bill from the Federal Ministry of Labour would fundamentally rewrite working-time rules, while separate reforms to accident-insurance thresholds and planned legislation on partial incapacity for work are adding fresh layers of compliance for employers.
Weekly cap with electronic tracking
The ministry’s draft allows collective-bargaining partners to agree on a weekly maximum working time instead of the current daily limits. The hard ceiling is 48 hours per week, averaged over twelve months. In return, companies must record the start, end and duration of each employee’s working hours electronically. Smaller firms may qualify for exemptions.
The proposal marks a significant departure from the existing daily rest-period regime and is intended to provide more flexibility for shift-based and project-driven industries. It also aims to curb disputes over undocumented overtime.
Thorough documentation is becoming a core compliance requirement — not just for working time but for workplace hazards too. A free Risk Assessment Toolkit provides 41 ready-to-use templates covering everything from fire safety to lone working, helping you stay on top of your safety obligations. Download the free Risk Assessment Toolkit
Safety officer threshold raised
A separate amendment to Book Seven of the Social Code (SGB VII) already took effect on 29 May. The threshold for appointing safety officers jumps from 20 to 50 employees. Workplaces with 20 to 49 staff members now only need a safety officer if specific hazards are present. The Federal Institute for Occupational Safety and Health simultaneously published an updated risk-assessment handbook that includes a revised section on psychological strain.
The move reflects a recalibration of enforcement priorities. Official estimates put the annual production loss from employee incapacity at roughly €85 billion – a figure that underscores the economic weight of workplace safety.
When is a workplace accident not an accident?
The Hanover Social Court drew a clear line: a cruciate-ligament tear suffered during a company football tournament does not count as a work accident if the event is predominantly competitive. In the case of a large firm with 3,900 employees, the tournament featured qualification rounds and a limited number of finalists – characteristics that placed it outside the definition of a company communal event.
Conversely, the Federal Labour Court strengthened employee rights for injuries on business-related trips. An accident while driving to a construction site is a work accident, with financial consequences for the employer. A road builder won the right to his 13th-month bonus despite a prolonged period of incapacity.
Partial sick leave arrives in 2027
A draft bill from the Ministry of Health proposes introducing partial incapacity for work on 1 January 2027. Employees who are ill for longer than four weeks would be able to return gradually at 25, 50 or 75 percent of their usual hours. Full wage continuation pay remains in place during the phased return. Employers must respond with approval or rejection within seven days.
The measure is designed to ease long-term absences and reduce the costs of chronic illness for both businesses and the social security system.
Managing long-term absences is easier when your workplace safety foundation is solid. A free Health & Safety Toolkit gives you instant access to risk assessments, checklists and toolbox talks that help you protect your workforce and stay compliant. Download the free Health & Safety Toolkit
Paperwork pitfalls
Incomplete records can prove expensive. The Berlin-Brandenburg State Social Court ruled that when documentation is missing, the pension insurance fund is allowed to estimate contributions – leading to a back-payment demand of €130,000 for a five-year period in the case at hand.
Employers are also urged to scrutinise sick notes. Health insurance studies show an average of 17 sick days per year, with a significant share of respondents admitting they have called in sick without actually being ill. Where there are substantiated indications of fraud, companies can challenge a sick certificate and involve the Medical Service. If serious suspicion arises, employers are even obliged to attempt a hearing while the employee is on leave – otherwise deadlines expire and the right to object is lost.
