The German Federal Labour Court’s (BAG) recent ruling mandating that employers keep track of their workers’ working hours has sparked a lot of debate and interest. In order to help you comply with the new regulation, this article provides an overview of the main changes and advice on how to modify your time-tracking procedures, especially helpful for those managing remote teams globally.
Understanding the New Requirement
Employers are now required to monitor all working hours, not just overtime, in accordance with the revised interpretation of the German Working Time Act (ArbZG). This includes:
- Daily submission: Employees must submit their working hours for each day worked.
- Timely reporting: Ideally, this should be done before the end of the working day, but no later than seven days after.
- Detailed records: Records should include start and end times, breaks, and rest periods, with a maximum of 10 hours worked per day.
- Employer responsibility: While employees may be tasked with recording their time, employers are ultimately responsible for ensuring the system is in place and functioning correctly.
- Works council involvement: Companies with a works council must consult with them on the implementation of time-tracking systems.
Penalties for Non-Compliance
Penalties of up to EUR 30,000 may be imposed for breaking the new time-tracking laws. It is also critical to remember that time records are regarded as personal data, meaning that employers who gather and retain this data must abide by data protection laws.
How to Track Hours
Employers should establish a standardized company-wide procedure for recording working hours and communicate it clearly to all employees. Although electronic recording is recommended by the proposed amendment, non-electronic techniques are still valid. Commonplace instruments, applications, and even spreadsheet programmes like Excel are examples of electronic recording.
If an employee requests a copy of the recorded working hours, employers are required to provide it.
Flexible Work Arrangements
Flexible work arrangements like trust-based or remote work are largely unaffected by the new law. The implementation of a remote time-tracking system complies with regulatory requirements.
Working Hours and Overtime
The German Working Time Act generally limits the workday to eight hours, although this can be temporarily increased to 10 hours per day or 60 hours per week under certain conditions. It is also necessary to have set breaks. Unless there are special arrangements in place, employers and employees should follow the working hours specified in the contract.
Conclusion
Employers and employees can ensure compliance and a seamless transition by understanding the requirements and putting in place an appropriate time-tracking system, even though the new time-tracking law may seem overwhelming at first. Companies seeking to manage global teams efficiently might consider using an Employer of Record to handle complex employment regulations.
