Is digital working time recording mandatory?

Many companies (in Germany) are concerned with the issue of mandatory working time recording. The focus is particularly on digital time recording.

Is there already a legal obligation here? The legal situation was unclear for a long time, but recent rulings and legislative initiatives are bringing movement to the issue. It is time to create clarity, because ignorance does not protect against possible consequences.

Our article sheds light on the current status, explains the background and shows why a proactive approach to digital time recording makes sense now.

Is electronic time recording mandatory? An overview of the legal situation.

The discussion about mandatory working time recording is not new. For a long time in Germany, the Working Hours Act (ArbZG) primarily stipulated the obligation to document overtime as well as work on Sundays and public holidays. With the exception of certain sectors (e.g. in accordance with the Minimum Wage Act), there was no explicit requirement to record all working hours.

The impetus from Europe: the 2019 ECJ ruling

The European Court of Justice (ECJ) set the ball rolling in May 2019 with the so-called “time clock ruling”. In a case from Spain, in which the trade union Comisiones Obreras took Deutsche Bank to court, the ECJ ruled that EU member states must oblige their employers to set up a system for recording working hours.

The system must fulfill three central criteria: It must be objective, reliable and accessible. The aim was to ensure compliance with the EU Working Time Directive, which protects daily rest periods and maximum weekly working hours.

This ruling increased the pressure on the German legislator to adapt the national regulations. However, this did not make a specific form of recording, such as electronic time recording, mandatory.

Clarity from the Federal Labor Court: BAG ruling 2022

In September 2022, the Federal Labor Courtecourt (BAG) facts. The judges derived from the German Occupational Health and Safety Act (ArbSchG) a fundamental obligation for employers to introduce a system with which the entire working time of employees can be recorded.

This means that the start, end and therefore the duration of the daily working time must be documented. The BAG clarified that the obligation to record time already exists.

However, the BAG ruling did not specify the form of time recording.

Whether a traditional timesheet, Excel spreadsheet or a digital solution should be used was initially left open. In addition, the Occupational Health and Safety Act itself does not provide for any direct fines for breaches of this specific recording obligation.

Nevertheless, the message was clear: employers must act. The question was no longer whether, but how to implement time recording and when specific digital time recording will become mandatory.

The next step: The BMAS 2023 draft bill

In order to concretize the requirements of the ECJ and the decision of the BAG, the Federal Ministry of Labor and Social Affairs (BMAS) presented a draft bill to amend the Working Hours Act in April 2023.

This draft provides for electronic working time recording to become the rule. Paper-based records that are merely scanned in retrospect will no longer be sufficient.

According to the draft, employers should record the start, end and duration of daily working hours electronically and on the same day. Various digital solutions such as time recording software, apps or digital terminals would be permitted. The obligation to record time digitally would thus be clearly enshrined in law.

Important details from the draft law

The 2023 draft bill contains other important points that show where the journey could take us:

• Retention:
  timesheets must be stored electronically for at least two years. Employees should be entitled to a copy of their records.
• Penalties:
  Violations of the obligation to record, store or provide information can be punished as an administrative offense with fines of up to 30,000 euros. A significant tightening compared to the current situation.
• Delegation:
  The obligation to record data can be delegated to employees. However, the responsibility for correct implementation remains with the employer.
• Trust-based working hours:
  Flexible working time models in which employees decide for themselves when to start and end their work (trust-based working hours) should continue to be possible. This does not release employees from the obligation to record their working time, but employees can document it themselves.
• Recording obligation:
  Recording should generally take place on the same day. However, collective agreements or company agreements may permit deviations, whereby recording must take place after seven days at the latest.

In which cases is digital time recording mandatory?
Exceptions and transitional periods:

Even though there is a clear trend towards electronic time recording, the BMAS draft provides for exceptions and simplifications.

Exceptions to the electronic form

Companies with fewer than ten employees, private households and foreign employers without a permanent establishment in Germany (where fewer than 10 employees are posted) would be exempt from the electronic obligation. Non-electronic recording would continue to suffice here. Collective agreements could also allow deviations from the electronic form.

Transition periods

In order to give companies time for the changeover, the draft provides for staggered deadlines for the introduction of the electronic form:

• One year in general for all employers.
• Two years for companies with fewer than 250 employees.
• Five years for companies with fewer than 50 employees. Important: These deadlines only relate to the form of recording. According to the BAG ruling, the basic obligation to record time (in any form) has already existed since 2022.

Exemptions from the general obligation to record

Certain groups whose working hours are difficult to measure or are not defined in advance (e.g. senior executives, chief physicians) may be exempt from the obligation to keep records under certain conditions (often regulated by collective agreements).

Current status and outlook: Will electronic working time recording soon be mandatory?

The BMAS draft bill from April 2023 has not yet been passed into law. Following the presentation of the draft, there were further consultations within the federal government and with the social partners (trade unions and employers’ associations).

A final agreement has not yet been reached (as of April 2025). This means that the specific legal implementation of an electronic time recording obligation is still pending. It is possible that details of the original draft may still change.

However, political developments indicate that the issue remains a high priority. In the Coalition agreement between the CDU/CSU and SPD in April 2025 emphasizes the introduction of mandatory time recording in order to promote transparency and fairness and ensure compliance with labour law provisions.

It is expected that digital solutions will be promoted and that transitional periods will be provided, particularly for small and medium-sized enterprises (SMEs). The possibility of making maximum working hours more flexible (e.g. weekly instead of daily limits) is also being discussed, which underlines the need for accurate recording.

Even if the final law on digital time recording is still a long way off, the direction is clear: digital time recording is very likely to become mandatory.

Why wait any longer?
The advantages of modern digital time recording:

The introduction of digital time recording should not just be seen as a chore. It offers concrete benefits for employers and employees.

• Transparency and fairness:
  Working hours are documented in a comprehensible manner. This creates trust and ensures that overtime is recorded and remunerated correctly. It protects employees from being overworked and employers from potential legal conflicts.
• Efficiency and reduction in bureaucracy:
  Manual processes such as filling out and collecting timesheets or transferring data to Excel lists quickly lead to errors and cost time. A digital solution automates many steps. Imagine how much time your HR department will save if data no longer has to be transferred manually, but is available directly for payroll accounting.
• Legal certainty:
  With a suitable system, you fulfill the current and expected future obligation to (digital) time recording.
• Flexibility:
  Modern systems support various working models. Whether in the office at the terminal, in the home office via web browser or on the move via smartphone app – electronic working time recording adapts to the reality of work, not the other way around.

Mastering challenges with the right solution

Of course, there are also concerns: costs for the purchase, training costs, handling for employees without a fixed PC workstation, such as in the construction industry, in security services or for driving service providers. transport service providers. A good digital time recording system must overcome these hurdles.

It should:

• Be intuitive to use:
  Minimal training required for all employees.
• Be flexibly accessible:
  Can be used via various end devices (PC, terminal, smartphone, tablet).
• Tamper-proof and correct:
  data must be recorded and stored securely. Corrections must be possible, but must be recorded in a traceable manner (audit-proof).
• Be cost-efficient:
  Not only in terms of purchase, but also in terms of ongoing operation.

Teamhero:
Your solution for digital time recording and more

In view of the existing regulations on time recording and the foreseeable tightening of the digital time recording obligation, now is the right time to implement a future-proof solution.

Teamhero offers intuitive and powerful software that does far more than just time recording, but is perfectly tailored to the requirements here.

With Teamhero you meet the criteria for objective, reliable and accessible time recording.

Employees can record their working hours easily and flexibly. The data is stored centrally and securely stored on German servers, meet the storage requirements and are available for evaluation at any time.

Integration into the entire personnel planning process, from recruitment to deployment planning and communication, makes Teamhero the perfect central platform for your personnel management.

Especially for companies with a large number of staff in dynamic areas such as events or in the healthcare Teamhero offers the necessary flexibility and robustness. Customize the software exactly to your needs and benefit from a system that thinks for you.

Conclusion: Rely on future-proof time recording with Teamhero

The obligation to record working hours is a reality in Germany. Even if the final law on mandatory digital time recording is still being formulated, the direction is clear.

Employers should act now in order to be legally compliant and take advantage of the benefits of digitalization.

Electronic working time recording is not a burden: with the right software, it can contribute to greater efficiency, transparency and fairness in the company. Shape the transition proactively.

Would you like to find out how Teamhero can simplify your working time management and optimize your entire personnel management? Then arrange a Personal meeting.