Since a ruling by the German Federal Labour Court (Bundesarbeitsgericht) on 13 September 2022, it has been clear: employers in Germany must record their employees' working time. A new law with detailed requirements has been announced but not yet passed. What does this mean for small businesses, as of October 2026?
What already applies today
- Obligation to record: under the Federal Labour Court ruling (1 ABR 22/21), the start, end and therefore the duration of working time must be recorded. No particular form, such as electronic recording, is currently required.
- Mini-jobs and certain sectors: under the Minimum Wage Act, the start, end and duration of working time for mini-jobbers and in certain sectors, including hospitality and accommodation, must be recorded by the end of the seventh day at the latest and kept for at least two years.
- Overtime: working time over 8 hours on a working day has long had to be recorded under the Working Hours Act.
What is planned
The Federal Ministry of Labour has presented a draft bill. According to reports (as of summer 2026), it is still being coordinated within the government; when and in what form it will be passed is open. Points under discussion include:
- recording to be electronic as a rule
- a permanent exemption for businesses with up to 10 employees, who may continue to record by hand
- staggered transition periods, longer for smaller companies
- a possible weekly instead of daily maximum working time, but only with a collective or works agreement; the 11-hour rest period is to remain
A lot can still change before a law is passed. Check the current status before making decisions.
What good time recording in a small business should do
- Start, end and breaks for each day, not just a total of hours
- Simple enough to really be done every day, for example with a tap at the entrance
- Later changes visible, so corrections stay traceable
- Monthly overview per person with planned hours, actual hours and hours balance
- Time sheets to sign, for your payroll office or an inspection
- Data stored securely, because it is personal data
Paper, Excel or app?
Paper is allowed as long as it is complete and traceable, but adding it up takes time. Excel does the math but doesn't spot forgotten breaks or show who changed something. An app saves the most time, but it shouldn't cost money every month or send your data to a cloud without asking.
Time recording without paper? With the time clock in Team Planner, staff tap their name on a tablet or phone, clock-in and clock-out are recorded, and breaks are deducted according to your rules. You also get an hour balance with overtime and undertime, and the timesheet as a PDF with signature fields. Offline app, your data stays on your device, one-time purchase with no subscription.
Frequently asked questions
Do I have to buy an electronic time recording system now as a small business?
As things stand, no particular form is required. But you already have to record working time. When the new law comes, the draft provides exemptions and long transition periods for small businesses.
How long do I have to keep the records?
At least two years under the Minimum Wage Act and the Working Hours Act. Longer tax retention periods can apply to payroll documents; check this with your payroll office.
Does the staff schedule count as time recording?
No. The schedule shows when someone is supposed to work. What has to be recorded is when work actually took place. How to build a good schedule is explained in Building a staff schedule.
Time recording without the paperwork
In Team Planner, employees clock in with a tap on a tablet or phone, breaks are deducted according to your rules, and changed times are marked as “corrected” on the time sheet. Hours balance, monthly overview and time sheets as PDF are created automatically, plus an Excel file for your payroll office. The app runs offline with no subscription, and the data is stored encrypted on your device. For project time with costs, see our guide Project time tracking in Excel.
This article is a general practical aid (as of October 2026) and is not legal advice. Planned legislation can change, so please check the current status.