New regulations on electronic time tracking

Labor laws are constantly changing, and it is important to stay up to date in order to comply with legal requirements, whether as an employer or an employee. Recently, the Federal Ministry of Labor and Social Affairs presented a draft bill for a revised version of the Working Hours Act, which introduces new regulations on electronic time tracking. The Chamber of Public Accountants (WPK) is currently drawing attention to these changes.

According to the draft bill, all employers will generally be required to electronically record the start, end, and duration of their employees’ daily working hours. These records must be retained for a specified period to ensure compliance with regulations regarding maximum working hours, minimum rest periods, and breaks. The electronic recording may be performed either by the employee themselves or by a third party, such as a supervisor.

Exceptions to the electronic recording requirement

However, there are also exceptions to the requirement for electronic working time recording. A trust-based working time arrangement may be agreed upon if the employer waives the requirement to specify the start and end of the contractually agreed working hours. In this case, however, the employer must take appropriate measures to detect violations of the legal provisions regarding working hours and rest periods. Furthermore, employers with up to ten employees may record working hours in a non-electronic format.

Rights and obligations of employers and employees

According to the draft bill, the employer is obligated to provide information on the recorded working hours at the employee’s request. Additionally, violations of the recording, retention, and information obligations are classified as administrative offenses subject to fines.

It remains to be seen when the law revising the Working Hours Act will be passed and take effect. What is certain, however, is that the new regulations on electronic working time recording represent an important development in labor law, as they serve to protect employees’ rights. Employers should prepare for these upcoming changes to avoid legal consequences. Employees can benefit from the new regulations, as they ensure that their working hours are recorded accurately and that their rights to adequate rest periods and breaks are upheld.

It is advisable to closely monitor the legislative process and, if necessary, seek legal advice to ensure the new provisions are properly implemented. Our tax advisors in Düsseldorf and Oberhausen would be happy to advise you at our offices.