Germany Proposes Mandatory Electronic Time Tracking by 2027 as Unpaid Overtime Exceeds 638 Million Hours
25.06.2026 - 07:56:47 | boerse-global.de
Berlin is pressing ahead with a sweeping reform of its working-hours law, requiring employers to log start, end and total daily hours electronically — and on the same day — from 1 January 2027. The draft, drawn up by the Federal Ministry of Labour and Social Affairs, aims to tighten compliance with rest periods and maximum working limits. Violations could draw fines of up to €30,000.
The eight-hour workday remains the default maximum, with extensions to ten hours permissible only if offset. What marks a significant shift is that companies and trade unions will be able to agree on a weekly rather than a daily cap on working hours. In such cases the weekly average over twelve months must not exceed 48 hours. The statutory eleven-hour rest period may be cut or waived under certain health-related conditions. The compensation period for exceeding limits shrinks from six to four months. Bakeries receive a special carve?out: Sunday and public?holiday work may rise to five hours.
Small firms get extra time, but not everyone is satisfied
Businesses with fewer than 250 employees have two years to comply; those with under 50 staff get five years. Micro?enterprises with fewer than ten employees may keep non?electronic records. One?time compliance costs for the economy are estimated at roughly €77 million, while the ministry expects long?term savings of about €170 million from digitalisation. Critics, however, question those forecasts, pointing to the burden of minute?accurate same?day logging, especially for field workers and home?office staff.
The draft immediately drew fire from employer groups. Jana Schimke, managing director of the German hospitality association DEHOGA, called the plans a burden on mid?sized firms. She noted that flexibility is tied strictly to collective?bargaining agreements — a problem for sectors like gastronomy and system catering where union coverage is often low. Conservative politicians and business lobbies argue the proposal falls short of coalition promises and creates too much bureaucracy. They want flexibility to also be possible through works?council agreements.
Unions welcome tracking but warn against safety loopholes
The German Trade Union Federation (DGB) broadly supports mandatory digital recording. But it cautions against weakening health protection. Unions point to a record 638 million hours of unpaid overtime logged in 2024. They also criticise the prospect of longer daily shifts without giving workers an individual right to refuse.
As the article makes clear, health protection and compliance are at the heart of regulatory changes. For UK employers, the same principle applies under health and safety law — and the consequences of non?compliance can be severe. A free Health & Safety Toolkit provides ready?to?use risk assessments, checklists and practical guidance to help you meet your legal duties and reduce workplace risks. Download the free Health & Safety Toolkit now
Parallel to the working?time debate, a pensions commission in late June issued 33 recommendations that include scrapping mini?jobs, raising the retirement age and ending the “Rente mit 63” early?retirement scheme. Labour Minister Bärbel Bas aims to implement both reform packages by the end of the year. The working?hours bill now enters inter?ministerial coordination before going to the cabinet and then to the Bundestag.
