Electronic Time Tracking Now Compulsory as Germany Revamps Work-Hour Rules

Employers across Germany face a new administrative reality from 2026: every minute of every employee’s workday must be logged electronically. The reform of the Working Time Act (Arbeitszeitgesetz) makes digital time recording mandatory, requiring companies to document start, end, and total daily hours — including all breaks and overtime — to the minute. Records must be kept for two years, a move designed to boost transparency and ease inspections by labor authorities.

At the same time, the law relaxes the long-standing 10-hour daily ceiling. Instead, a weekly cap of 48 hours takes effect, allowing employees to work up to 12 hours on any single day — provided the weekly limit is not breached. The 11-hour rest period between shifts, break rules, and protections for Sundays and public holidays remain unchanged. Policymakers say the change gives businesses more flexibility in staff scheduling without compromising health safeguards.

As working time rules tighten across Europe, UK employers face their own compliance pressures. Many businesses still lack fundamental health and safety documents, putting them at risk of heavy fines.?Over 37,000 UK companies already use a free toolkit that provides ready-to-use risk assessments and checklists to meet legal duties.?Download the free Health & Safety Toolkit

Partial Sick Leave Takes Effect

Since July 10, 2026, a separate reform linked to the Stabilisation of Statutory Health Insurance Contribution Rates Act has introduced partial sick notes. Employees can now be certified as unfit for work at 25, 50, or 75 percent of their weekly hours, enabling a phased return to the job.

Recent data from the DAK health insurance fund shows sick leave rates easing slightly: 5.3 percent in the first half of 2026, down from 5.4 percent a year earlier. On average, workers took 9.6 sick days. Respiratory illnesses dropped 21 percent, while mental health disorders rose 9 percent to 184 days per 100 insured members. The fund welcomed the partial sick-note option as a sensible tool for gradual reintegration.

Public-Sector Bonus and Choice Model Kick In

For employees covered by the federal public-sector collective agreement (TVöD), the annual bonus payment follows new tiered rates from 2026. The bonus is paid with the November salary:

• Federal level: Pay groups 1–8 receive 95 percent, 9a–12 get 90 percent, and 13–15 receive 75 percent.
• Municipalities: A flat 85 percent applies to all groups.
• Hospitals and care facilities: Groups 1–8 receive 90 percent; higher groups get 85 percent.

A new opt-out allows staff to swap the cash bonus for up to three extra days off. Applications must be submitted by September 1, 2026.

Political Debate: Longer Holidays, Minijob Overhaul

Beyond already enacted changes, further labour-law discussions continue. The Social Democratic Party (SPD) is pushing to raise the statutory minimum annual leave from 20 to 21 days — a move that would benefit an estimated 4 million workers.

A government-appointed pension commission has proposed scrapping the special status of mini-jobs (Minijobs), which are currently exempt from social security contributions. Under the plan, contributions to pension, long-term care, and health insurance would apply to these roles too. Employer associations warn of rising bureaucracy and labour shortages, particularly in the hospitality sector.

With employment law in constant flux, ensuring full compliance can feel overwhelming. In the UK, the Health & Safety at Work Act remains a key legal foundation that many companies struggle to meet.?A free toolkit offers nine essential tools including a compliance checklist that reveals where your business might be vulnerable.?Download the free Health & Safety at Work Act Toolkit

Meanwhile, Saxony will become the penultimate state to introduce a statutory right to paid educational leave on January 1, 2027. At that point, workers in 15 of Germany’s 16 federal states will be entitled to most commonly five days of paid time off per year for certified professional development courses.

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