ECJ ruling on the recording of working hours – a challenge for many German companies

According to the ruling of the European Court of Justice on the recording of working hours, companies in the EU will have to record all working hours of their employees in the future. But what do companies need to consider when adapting to the new legal situation? And what are the implications for flexible working?

The COVID-19 pandemic has permanently changed the world of work. Mobile working, separate teams and home office are now part of everyday life for many employees. Flexible working hours have also been established in numerous German companies since 2020, according to a LinkedIn study .

The ruling by the European Court of Justice (ECJ) on the systematic recording of working hours seems like a contradiction amidst these developments. Inevitably, the question arises if the law is not rather a step backwards than a push in the right direction.

Still no concrete regulation in Germany?

Back in May 2019, the ECJ ruled that companies in the EU must record all hours worked by their employees in the future. The Working Hours Act ("Arbeitszeitgesetz") does not yet contain any specific provisions on this topic. Even though the ruling is currently still awaiting implementation in German law, one thing is clear: In the future, working hours must be recorded electronically on a daily basis, including the start and end times of each work period. This applies regardless of whether one works in the office, in the field or from home. Employers must ensure that records of work hours are accurate and reliable.

Despite the fact that the draft law has not yet been finalized, deadlines have already been set for companies to introduce electronic recording of working hours, depending on the size of the company:

• For up to ten employees, time recording in paper form is to be sufficient.
• For fewer than 50 employees, a period of five years has been set for the changeover.
• If the company has fewer than 250 employees, it will have two years to make the necessary changes.
• For 250 employees or more, the transition period will be one year.

Businesses should not rush the changeover

The requirement to use electronic time recording will pose challenges for many companies. This is because an electronic form of time recording requires digitally available personnel data to implement and introduce a system.

But before companies consider the introduction of a system for electronic time recording, they should understand the status quo in order to be able to initiate the necessary measures in good time and thus ensure a successful introduction.

In principle, the first question to ask is whether there is already an existing HR Information System (HRIS). After all, it may be that the system can already cover electronic working time recording in a form that can be implemented in the company. In addition, it must be clarified whether each employee has access to a computer or whether a classic time clock is required to transfer the data to the system.

The end of flexible working??

But let's return to the question of whether electronic time recording will undo recent progress in the world of work. Does it mean the end of all flexibility and a return to the classic eight-hour day??

The introduction of time recording does not necessarily mean a loss of flexibility. In the future, it will still be possible to give employees a flexible work arrangement and the option of working from home. Above all, electronic recording makes the hours worked more transparent and ensures compliance with the regulations on break and rest times that already apply. By systematically recording working hours, employers can better distribute the workload and help employees achieve a healthy work-life balance. They can also prevent employees from working too much and becoming overworked. So the impact of the ECJ’s “time-clock decision” on flexible working can also be positive.?

Regardless of what the ultimate impact of the ruling will be, one thing is certain: electronic timesheets are coming and companies will need to upgrade or retool. Nevertheless, organizations should not only think about the technical implementation of a suitable system, but also about the impact it can have on employees, corporate culture and dynamics. Sufficient lead time for implementation includes, among other things, a well thought-out communication strategy that demonstrates clear benefits for both the company and its employees. After all, only those who consider all aspects of an implementation can ensure the long-term successful introduction of a working time management system.?

Do you need support in selecting and implementing the right system for you? We at torq.people are happy to help you find a future-proof solution with which you can create the basis for modern working time management. This will help you avoid errors when recording working times and free up time for value-adding activities. Already now, with an analysis of the status quo, we can create the right conditions for a reliable and accessible system in your company.

About the author

Johanna Gro?e Daldrup is a consultant at torq.partners . Previously, she worked in leading HR positions at renowned companies in the finance and mobility industry. With her extensive experience she helps companies to take their People and Culture function to the next level.