Working Time Act: What remains of the promised flexibility?

Since the Federal Labour Court’s 2022 decision establishing an obligation to record working time, a comprehensive reform of the German Working Time Act (ArbZG) has been on the political agenda. The coalition agreement between the CDU and SPD advocated for greater flexibility and set out ambitious guiding principles: A shift from a daily to a weekly maximum working time, a streamlined and unbureaucratic digital time recording system, and the preservation of trust-based working time (Vertrauensarbeitszeit). The Federal Ministry of Labour and Social Affairs (BMAS), led by the SPD, had announced that it would present a draft by June 2026. The now-circulating unofficial draft bill from the BMAS, however, falls short of expectations for genuine flexibility and has triggered sharp criticism from the coalition partner and employer associations.

Weekly maximum working time only via collective agreements

Contrary to the coalition agreement, the draft does not provide for a general transition to a weekly maximum working time. Instead, the daily limit remains the statutory default model.

A weekly maximum working time would only be permissible on the basis of a collective bargaining agreement by a works agreement based on an opening clause in such a collective bargaining agreement. Notably, the draft does not provide any possibility for deviation for non-unionised employers or through individual employment agreements.

The draft also does not provide for any industry-specific exemptions.

Comprehensive working time recording

At the core of the draft is the statutory specification of working time recording requirements. Employers would be obliged to record the start, end, and duration of daily working time, generally in electronic form and on the same day the work is performed. Responsibility would remain with the employer even where the task is delegated. Violations of the recording obligation may be subject to administrative fines.

Any deviations from comprehensive time recording, such as non-electronic recording or delayed documentation, would only be permissible on the basis of a collective agreement or a works agreement derived from such an agreement. A limited exception applies only to micro-enterprises with no more than ten employees.

At least, members of corporate bodies (in particular managing directors) and senior executives (leitende Angestellte) would be exempt from the recording obligation.

Trust-based working time devalued

While trust-based working time would formally remain permissible, it would be subject to full working time recording requirements. In addition, employers would be required to implement organisational measures to ensure that they become aware of any breaches of maximum working time limits and rest period requirements, for example through spot checks or automated alerts in the event of exceedances. This would effectively strip trust-based working time of its substantive core.

Sunday and public holiday work

The draft contains selective adjustments for certain sectors, such as public libraries as well as bakeries and confectionery businesses. However, the fundamental prohibition of work on Sundays and public holidays remains unchanged.

What happens next?

In light of the strong criticism from the coalition partner, it appears unlikely that the draft will be adopted without significant amendments. Nevertheless, employers would be well advised to closely monitor further developments and, at the same time, continue to consistently pursue their plans for working time recording.