Berlin's Work-Time Reform: Longer Days Permitted, but Most Firms Excluded

The centerpiece: replacing the daily maximum with a weekly cap of 48 hours. But the flexibility comes with a catch — it is only available to companies bound by collective agreements.

The proposal, now circulating among ministries, would let unions and employers negotiate away the traditional eight-hour day. The legally required 11-hour rest break could also be scrapped if the contract includes protective provisions for staff.

Electronic timekeeping becomes mandatory

Alongside the loosening of limits, the draft tightens documentation rules. Every business must record start, end and duration of daily work — digitally and on the same day. The measure aims to ensure that maximum hours and rest periods are actually respected.

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Critics argue the reform opens the door to extreme schedules. Andreas Hemsing, head of tariff policy at the dbb civil servants' union, called it a “trial balloon” that endangers the proven eight-hour day. Unions warn of shifts lasting up to 13 hours.

Worker skepticism runs deep. According to DGB surveys, roughly three-quarters of employees prefer a maximum eight-hour day, and 98 percent reject any extension beyond ten hours.

The data gap between demand and reality

The Institute for Employment Research (IAB) confirms that many companies want more leeway. In the first quarter of 2026, 32.6 percent of firms said they needed shifts longer than ten hours. For large enterprises the figure was 45 percent, versus 28 percent for micro-businesses. The strongest demand came from agriculture, public administration and manufacturing.

The problem: only 9 percent of all businesses are both bound by a collective agreement and need days above ten hours. Nationwide, tariff binding covers 48.7 percent of employees. Sectors like hospitality — which saw a real turnover drop of 4.9 percent in 2025 — have a binding rate of just 23 percent.

Jana Schimke, head of the DEHOGA hospitality association, called the draft insufficient for the Mittelstand. The opposition CDU/CSU, through Carsten Linnemann, demands flexibility for all firms regardless of tariff coverage. IAB researcher Enzo Weber proposed a compromise: a general ten-hour limit, with unions retaining priority on specific arrangements.

Overtime, tax breaks and holiday tweaks

The debate unfolds against a backdrop of heavy overtime. In 2024, German employees worked 1.2 billion extra hours, 638 million of them unpaid. That averages 28.2 hours per person.

The coalition agreement of the Merz government envisages tax-free overtime bonuses. A draft Market Strengthening Act from September 2025 would exempt surcharges for work beyond tariff full-time (at least 34 hours) or 40 weekly hours, up to 25 percent of the base wage. The start was planned for January 1, 2026, but the rule has not yet entered force.

Union ver.di points out that only 1.4 percent of employees regularly earn taxable overtime supplements. Part-time workers — 30 percent of the workforce — would see no benefit.

Separately, SPD co-leaders Lars Klingbeil and Bärbel Bas are pushing to raise statutory minimum holiday from 20 to 21 days for full-time staff, a move that would help about 4 million people.

Heat stress and health protections

The European Trade Union Confederation (EGB) has also entered the discussion, calling for new workplace safeguards as temperatures rise. With forecasts of heatwaves above 40°C in Germany, the EGB demands legally mandated hydration breaks and the right to heat pauses without wage cuts. The health risk at work increases by up to 7 percent above 30°C and by up to 15 percent above 38°C.

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The working-time reform draft is still in interministerial coordination. Further changes during the parliamentary process are expected.

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