Germany’s New Work-Time Rules: Every Step on Company Grounds Now Counts

Germany's highest labour court and the ECJ rule that walking from the factory gate to the production hall and changing into protective gear are paid working time, mandating digital time-tracking.

Under recent rulings by Germany’s highest labour court and the European Court of Justice, that walk is no longer a free commute for the employer — it is paid working time. The same applies to the minutes spent changing into mandatory protective gear inside the plant.

The key legal test, set out in a series of decisions by the Bundesarbeitsgericht (BAG) and the European Court of Justice (EuGH), is straightforward: an employee is on the clock whenever they act on the employer’s instructions to serve a third party’s needs. The trip from home to the company remains private. The moment a worker steps onto the company premises, the clock starts ticking.

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With German courts confirming that time spent changing into protective gear is paid working time, employers must ensure their risk assessments capture every hazard — from PPE to thermal stress. The free Risk Assessment Toolkit provides 41 ready?to?use templates to document and manage workplace risks efficiently. Download the free Risk Assessment Toolkit

Labour law experts advise companies to negotiate works agreements with employee representatives. Such pacts provide transparency and legal certainty for both sides on what counts as compensable time — and what does not.

Digital Time-Tracking Becomes Mandatory

Since the landmark EuGH ruling in 2019 and a subsequent BAG decision in 2022, German employers have been obliged to systematically document working hours. A draft amendment to the Working Hours Act (Arbeitszeitgesetz) now pushes further: in future, recording must be minute-accurate and electronic. Exemptions may be granted for senior executives.

The move gives digital time-recording systems a significant boost. Modern tools must be tamper-proof, auditable and compliant with the General Data Protection Regulation (GDPR). Mobile solutions are gaining importance as home office and remote work continue to expand.

Acceptance of such systems is rising — and for good reason. According to estimates, roughly 13 percent of employees do not record their working hours correctly. At the same time, a considerable share of staff use paid work time for private matters.

When Billable Hours Slip Through the Cracks

Precise tracking is not just an administrative burden — it has direct financial consequences. IT service providers in particular suffer from what is known as billable leakage: completed work is never invoiced because hours are assigned to the wrong project or logged too late. Media breaks — switching between paper, spreadsheets and booking tools — are a common cause.

The economic stakes are high. Failing to capture minutes accurately can erode margins quickly in sectors where every unit of time is sold.

The Broader Battle Over Working Hours

Parallel to the legal clarification of travel and changing times, a fundamental debate over working-time policy is raging in Germany. In early July 2026, the coalition committee discussed a labour-market reform package that includes lowering dismissal protection for high earners with annual incomes above €177,000 and easing rules on fixed-term contracts without cause. However, the package explicitly left out any flexibility on working hours.

Economist Ferdinand Dudenhöffer has called for a return to the 40-hour week without pay compensation, citing falling sales in the automotive industry. According to reports, Mercedes-Benz is pursuing such plans — the labour unions are pushing back.

Contrast that with developments in public transport. In Niedersachsen (Lower Saxony), unions and employers agreed in July 2026 to gradually reduce the weekly working time in local public transit to 38.5 hours by 2028.

Heat Eats Into Productivity — But No Siesta in Sight

Climate change is adding another dimension. Rising temperatures cause noticeable productivity losses. German regulations already require employers to take protective measures when indoor temperatures exceed 30 °C. At 35 °C, a workroom is deemed unsuitable without additional cooling interventions.

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As the German heat regulations demand protective measures above 30°C, maintaining thorough health and safety documentation is essential. The free Health & Safety Toolkit offers risk assessments and checklists covering heat stress, PPE, and first aid — helping any organisation stay on top of its obligations. Download the free Health & Safety Toolkit

Labour unions reject a blanket introduction of a Southern European-style siesta. Instead, they demand sector-specific solutions tailored to the actual thermal load in different industries.