Germany Pivots to Weekly Hour Limits as Labour Reform Package Clears Path for Digital Time-Tracking
Veröffentlicht: 10.07.2026 um 22:17 Uhr, Redaktion boerse-global.de
Germany's government has unveiled a sweeping labour reform that replaces the long-standing daily cap on working hours with a weekly limit, a move business groups say will boost flexibility and unions warn could pile more strain on employees. The package, expected to pass parliament after the summer recess, also widens the scope for fixed-term contracts and makes digital time-tracking compulsory for most firms from 2026.
Under the current law, workers may not exceed eight hours per day. The reform swaps that for a weekly maximum — the precise number of hours is not specified in the draft but aligns with existing European rules on weekly rest and maximum working time. The construction industry's main association, the Zentralverband des Deutschen Baugewerbes (ZDB), welcomed the change, arguing it would ease planning on sites where start and finish times often vary.
Ensuring workplace health and safety goes beyond tracking hours on the clock. UK employers face their own set of legal duties under the Health and Safety at Work Act, and keeping your documentation up to date is essential. A free comprehensive toolkit provides ready-to-use risk assessments, checklists, and toolbox talks designed to help you meet your compliance obligations. Download the free Health & Safety Toolkit
Fixed-term contracts stretched to four years
The reform allows employers to offer fixed-term contracts without a specific reason for up to 48 months, with as many as six extensions. That provision is itself temporary, running until 31 December 2030. For high earners, the government introduces a new severance option. Additional measures include tax incentives for quick job switches and the abolition of the requirement for a telephone sick note — a practice already phased out in many sectors.
Digital time-tracking becomes mandatory from 2026
From 2026, all businesses with more than ten employees must record working time digitally, down to the minute. Smaller firms with fewer than ten staff are exempt and may continue using paper records. The obligation covers all regular work hours, on-call time, breaks, and overtime. Records must be kept for at least two years.
Trust-based working time remains legally permissible, but employers cannot bypass their documentation duty. Works councils have a legal right to co-determine the design of the recording systems, according to employment-law specialists. Non-compliance can result in fines and liability risks.
Overtime: proof still on the worker
Despite the tighter recording rules, employees who want to claim overtime pay must still prove that the extra hours were ordered, approved, or tolerated by their employer. Germany's highest labour court, the Bundesarbeitsgericht (BAG), ruled in May 2022 that time-tracking serves primarily occupational health and safety, not wage claims.
Recent research highlights the practical importance of accurate records. A policy brief from the Wirtschafts- und Sozialwissenschaftliche Institut (WSI) found that fragmented workdays — interruptions followed by a restart after 7 p.m. — generate an average of 1.5 extra hours of overtime per week.
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New working models such as Workation are also gaining ground. Digital systems now allow location-independent recording via smartphone app, both in home-office settings and during stays abroad.
Bakeries get Sunday extension
From January 2027, bakeries will be allowed to open for up to eight hours on Sundays, tripling the previous three-hour limit. The change was pushed through by the coalition government led by Chancellor Merz. However, shop-closing hours remain the responsibility of Germany's 16 states. In Bavaria, for instance, a three-hour sales limit could still apply.
International echoes
The debate over working time extends beyond Germany. In Luxembourg, parliament has discussed several models, from keeping the current 40-hour week to cutting it to 38 hours. Labour Minister Spautz announced a social dialogue to begin in autumn. In Austria, the Arbeiterkammer (Chamber of Labour) handed in a petition with 36,000 signatures, demanding a legal right for part-time workers to increase their hours.
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