← BlogSeptember 16, 20225 min readEditorial teamDEUAENRU
For Companies
Working Time Recording: What the BAG Ruling Means for Employers
On 13 September 2022 the Federal Labour Court (BAG) ruled that employers must introduce a system for recording working time. Here is what we know so far and what businesses can do now.
What did the BAG decide?
The Federal Labour Court (case 1 ABR 22/21), in a proceeding on a works council matter, held that employers in Germany are obliged to introduce a system that records the start, end and length of employees’ daily working time. The court relies on the provisions of the Occupational Safety and Health Act, which is to be interpreted in the light of the 2019 ruling of the European Court of Justice.
Status: written reasons still missing
So far only the court’s press release is available. The written reasons are still to come. Open questions therefore include in what form recording must take place, whether trust-based working time remains possible and which transition periods apply. The legislator has announced a specific law.
What already applies today
In some sectors recording duties already exist under the Minimum Wage Act and the Posted Workers Act, for example in construction, restaurants and accommodation, or building cleaning. There, start, end and duration of working time must be recorded by the seventh day after the work at the latest and retained for at least two years. Clean documentation also makes sense for short-term seasonal workers.
What does this mean when using external staff?
When using staff via providers, timesheets should be clearly regulated: who records, who confirms, in what form and how often. With a contract for work, the provider records its own employees’ hours. On the distinction see Avoiding a Sham Contract for Work.
What businesses can prepare now
Even without final details, it is worth reviewing time recording. Timesheets, app solutions or terminals are common. Reliability and protection against manipulation matter. Employees should know how and when to record. With a minimum wage of €12 from 1 October 2022, correct hours are also decisive for payroll.
Checklist
- Review existing time recording
- Set responsibilities and deadlines
- Have timesheets or a system ready for seasonal workers
- Clarify records and confirmation routes with providers
- Watch legislative developments
Frequently asked questions
What did the BAG decide on 13 September 2022?
Employers must introduce a system to record the start, end and duration of working time.
Does this already apply to all businesses?
The court established the duty. Details on form and transition periods are open, and the written reasons are not yet available.
Are paper timesheets allowed?
The form has not been conclusively clarified so far. Reliability is important.
How long must records be kept?
In sectors with recording duties under the Minimum Wage Act, at least two years.
