Time Tracking Obligation 2025 – Quick Check for Employers

“Punch clock? That’s for grandma’s factory!” Anyone who thinks this way risks a fine faster than the barista can serve the first cappuccino. Since the Federal Labor Court’s decision of September 13, 2022 (1 ABR 22/21), every company must introduce an “objective, reliable, and accessible” time tracking system – immediately, regardless of industry, size, or work model.


1 | Status Quo 2025: Obligation Without a Specific Law

Paradoxical, but true: The obligation arises directly from Section 3 (2) No. 1 ArbSchG . A specific Time Tracking Act remains stalled in parliament; the BMAS draft (electronic, entry no later than seven days after shift end, retention for two years) awaits approval. Transitional periods? None. Supervisory authorities have long been conducting checks – and know the BAG’s (Federal Labor Court’s) stance by heart.


2 | What Happens If Nothing Is Done?

Occupational safety authorities can already issue orders and impose penalties of up to €30,000 per violation. The draft aims to extend this upper limit to all documentation errors soon. So, anyone who plays the “wait and see” game is betting €30,000 on red – and the wheel spins monthly.


3 | Three Myths That Will Cost You Dearly

MythRealityRisk
“We have trust-based working hours – no tracking is needed.”Even trust-based models require objective documentation; only control remains trust-based.Fine + lack of evidence in overtime claims
“Excel is enough.”Perhaps in the short term, but in the long term, policy demands tamper-proof software or terminals.Double the cost of conversion, evidentiary value questioned
“Student workers or freelancers are exempt.”The obligation applies to all employees – including mini-jobbers, interns, and external company staff; only genuine managing directors are exempt.Collective claims, intensive authority visits

4 | Five Immediate Measures – Quick & Affordable

  1. Choose a system
    Cloud tool, terminal, or app – the main thing is that it’s tamper-proof, daily available, and GDPR-compliant (EU server, deletion concept).
  2. Update service instructions
    Clear rule: “Start, end, and breaks are to be recorded on the same day.” Mobile teams use the app.
  3. Involve the works council
    The works council has full co-determination rights regarding how time is recorded (Section 87 (1) No. 6 BetrVG). A clear works agreement saves endless discussions.
  4. Establish a control process
    Monthly spot checks for 11-hour rest periods and 10-hour daily limits. Document violations in writing – otherwise, you will be liable later.
  5. Properly regulate data protection
    Retention for two years, access only on a “need-to-know” basis. Integrate information obligation according to Art. 13 GDPR into employee information.

5 | Case Study Cologne

A digital agency (five employees) used handwritten time sheets. Following a complaint, the district government found missing records and repeated 10-hour overruns. Result: Immediate conversion to electronic recording and a €5,000 fine per violation. A smartphone tool for four euros a month would have prevented this.


6 | My Offer – Concise, Yet Precise

I review your contracts and policies, draft legally sound service instructions, and represent you before authorities or in court if things are already critical. No workshops, no glossy audits – just targeted legal support exactly where it’s needed.


Key takeaway: Not tracking working hours doesn’t save time – it costs it.