EU Ruling Turns Commutes Into Paid Time for Millions of German Workers

A landmark decision from the European Court of Justice is forcing German employers to rethink how they compensate travel time — and could put hundreds of euros back into workers' pockets each month.

The ruling, issued on October 9, 2025 (Case C-110/24), establishes that journeys made in company vehicles to changing work sites must count as working hours. For employees whose effective hourly pay dips below Germany's minimum wage because those trips go unpaid, back pay claims of up to 400 euros per month may now be possible.

The Binary Framework: Work or Rest

European Union law draws no middle ground for travel. According to the ECJ, time is either working time or rest time — there is no separate "travel time" category. Trips to varying work locations qualify as working time when they form an integral part of the job.

Keeping track of how your team's time is classified is just one part of running a compliant workplace. UK employers face their own obligations under the Health & Safety at Work Act — and getting the documentation wrong can lead to costly penalties. A free toolkit provides nine ready-to-use checklists and risk assessments to help you stay on the right side of the law. Download the free Health & Safety at Work Act 1974 Toolkit

This applies most directly to workers without a fixed workplace. Anyone who drives directly from home or a meeting point to clients or construction sites is considered to be on the clock during the journey. Legal experts stress that the classification primarily serves occupational safety purposes — ensuring maximum working hours and rest breaks are respected. Pay rates for travel time can differ from regular wages, as long as they do not fall below the statutory minimum.

Three Conditions That Trigger the Rule

For travel time to count as working hours, three criteria must be met simultaneously:

• The journey must be a necessary part of the professional activity.
• The employer must set the essential parameters — meeting point, vehicle, or departure time.
• The employee must not be able to freely dispose of their time during the trip.

Whether the worker is driving or riding as a passenger makes no difference. What matters is the employer's interest in the journey. The standard commute between home and a fixed company location remains unaffected by the ruling.

When the Minimum Wage No Longer Adds Up

Germany's minimum wage rose to 13.90 euros per hour on January 1, 2026. When employers do not pay for travel time, the effective hourly rate drops sharply.

Consider this scenario: with 80 minutes of unpaid travel daily and a regular workday of 7.5 hours, the calculated hourly wage falls to 11.81 euros — well below the legal floor. To comply, an employer would need to pay roughly 18.50 euros extra per day, or about 400 euros per month.

Germany's Federal Labour Court (BAG) supports this interpretation. It defines trips to clients or assembly sites as part of the employee's main duty. Companies now face potential back-payment claims. Experts recommend meticulous documentation of travel times and a review of existing flat-rate compensation models.

Millions Caught in the Net

Estimates suggest more than two million workers across Germany are affected by the new framework. The hardest-hit sectors include:

• Construction and building cleaning: over 1.8 million workers
• Nursing and home-care services: roughly 450,000 workers
• Horticulture and landscaping: around 130,000 workers

Preparation time is also coming under scrutiny. The BAG considers mandatory preparatory tasks — such as setting up a shop before opening hours — as compensable working time. With just 30 minutes of unpaid preparation daily, annual claims can exceed 1,800 euros.

Whether you're managing a construction team or a care home, the core principle remains the same — you have a legal duty to protect your workforce. A comprehensive Health & Safety Toolkit gives you the templates and checklists you need to meet UK regulations and keep your team safe on the job. Download the free Health & Safety Toolkit

Watch Out for Short Deadlines

Germany generally applies a three-year statute of limitations. But labour lawyers warn that employment contracts and collective agreements often contain exclusion periods of only three to six months. If claims are not filed within that short window, they expire — even when the underlying legal position is clear.

For comparison, in the Netherlands such claims can be made retroactively for up to five years, unless shorter collective-bargaining provisions apply.

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