Do You Need an Employee Hours Tracker in Germany?

German employers are preparing for new rules that require them to actively use a time-tracking system to record employee work time. Does your business need an employee hours tracker? Read the article and be prepared.

With rulings of the European Court of Justice (ECJ) in 2019 and the German Federal Labour Court (Bundesarbeitsgerichts, BAG) in 2022, employee time tracking has been a hot topic in German businesses in recent years. The rulings make it mandatory for all German-based employers to record working hours. A written justification, published in December 2023, stated that a timekeeping system must be actively used, with the method of recording left to the employer’s discretion.

Minimal size for digital records

These rulings make recording working hours essential for employers, as they need to comply with legal requirements concerning work times, breaks, and rest periods. Even aside from the legal aspects, investing in an efficient employee hours tracker is interesting for employers. It helps them to improve productivity, efficiency, and transparency about all worked hours.

The start, duration, and end of all daily work time have to be electronically recorded. This is an important part of legislation that is currently being prepared by the Federal government, aimed at smaller companies. One of the details of the proposal is that it excludes employers with a maximum of up to ten employees from the obligation to electronically record working hours.

Meet labour laws with an efficient system

Businesses that use digital employee time-tracking solutions, report an average productivity increase of around 20%. This statistic is supported by various studies and industry reports. Aside from meeting the obligation to record working hours, a modern system is much more efficient and eliminates the risk of human error associated with manual data entry. Another aspect is enhancing employee satisfaction, by providing transparency on all worked hours with a system that is easy to use.

Comply with German time tracking laws and try TimeMoto Cloud for free. Experience effortless clocking in and out, real-time monitoring of attendance, and functions for easy reporting and scheduling.