Working Time Act Reform 2026: The End of the Strict 8-Hour Workday

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Germany is facing the most significant reform of its working time legislation in decades. Federal Minister of Labour Bärbel Bas (SPD) has announced plans to submit a draft bill in June 2026 that would replace the current daily maximum working time of 8 hours with a flexible weekly cap. What’s driving this change — and how can companies start preparing now?

What Is the Federal Government Planning?

The coalition agreement between the CDU/CSU and SPD aims to give both employees and employers greater flexibility in how working time is organised. Instead of the current rigid daily maximum — currently regulated under Section 3 of the German Working Time Act (§ 3 ArbZG ) — a weekly maximum working time limit is to apply in the future.
In practical terms, this means that employees could work significantly longer on certain days, as long as the weekly average remains within the legal limit.

Critics point out that if the mandatory minimum rest period of 11 hours remains unchanged under Section 5 of the German Working Time Act (ArbZG), working days of up to 13 hours could theoretically become possible.
The German Trade Union Confederation (DGB) therefore categorically rejects the reform and warns of potential health risks for employees.

Federal Minister for Economic Affairs Reiche (CDU), on the other hand, clearly supports the proposed direction. Flexible weekly working hours are to be introduced across industries — a move intended to strengthen Germany’s competitiveness.
The retail sector in particular, which employs around 3.1 million people, has been pushing for the reform for months.

The planned reform is part of a broader trend towards more flexible working time arrangements, which has gained significant momentum in recent years. We have already explained what this means for different working time models in detail in our article on flexible working time models.

Mandatory Electronic Time Recording Is Coming

The key counterbalance to greater flexibility is mandatory electronic time recording. According to the ministry, employee protection could not be guaranteed without complete digital documentation of working hours.

This development does not come as a surprise. As early as May 2019, the European Court of Justice ruled in case C-55/18 that EU member states must require employers to implement objective and reliable systems for recording working time.
Germany’s Federal Labour Court followed suit in September 2022 and made it clear that the obligation to record working time already applies — and to all companies. We have explained the Federal Labour Court ruling on working time recording in detail in a separate article.

We explain what this means for practical implementation in companies in our overview of the Working Time Recording Act 2023. Businesses that still do not use legally compliant time recording today risk substantial fines — regardless of the planned reform.

The message is clear: greater flexibility in working hours also means greater transparency and stronger documentation requirements.

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What Does This Mean for Companies?

The reform presents companies with new challenges:

  • More complex working time models require intelligent workforce planning that no longer focuses only on the individual workday, but takes the entire working week into account.
  • Overtime and additional working hours will need to be recorded and managed even more precisely in order to comply with legal limits. We have summarised everything companies need to know about overtime in workforce scheduling — including what is permitted and what is not — in this article.
  • Working time compliance becomes more complex when individual weekly schedules replace uniform daily rules.
  • Employees in high-pressure industries — such as logistics, retail and healthcare — need particularly reliable protection mechanisms. For these areas in particular, we have put together practical tips for shift planning in production.

Companies that still rely on Excel spreadsheets for time tracking should take action now. We explain why Excel is no longer sufficient for working time recording in our article on Excel time tracking — including its advantages and disadvantages.

Without a powerful digital tool, managing this level of complexity can quickly become a burden.

How TimeTrack Prepares Your Company for the Reform

TimeTrack is already the solution for tomorrow’s requirements. Here is how its key features directly address the new legal framework:

Automatic Time Tracking — Legally Compliant at the Click of a Button

With TimeTrack’s time tracking software, employees record their working hours precisely and tamper-proof — via app, web interface or time clock. This fully meets the requirements for electronic working time recording as prescribed by the Federal Government.
Our guide Which Time Tracking System Is Right for Your Company? explains which recording method best suits your business.

Flexible Shift and Weekly Planning

With TimeTrack’s shift planner, complex weekly schedules can be created and adjusted with ease. If the daily maximum working time limit is removed and weekly working time models become the standard, companies will need exactly this kind of tool: a planning interface that shows the bigger picture — not just a single workday.
Our article Creating a Duty Roster: Put an End to Time-Consuming Planning explains how to create an effective work schedule and what companies need to consider. For those who want to go one step further, our article on automated workforce scheduling covers everything you need to know about AI-supported shift planning.

Overtime Tracking & Working Time Account

TimeTrack automatically records overtime and undertime and maintains working time accounts for every employee. This gives HR teams and managers a clear overview at all times of whether weekly maximum working time limits are being met — and allows them to take corrective action early.
Our article How to Calculate Working Time Correctly explains how working hours are calculated accurately and which formulas can help.

Analytics & Compliance Reports

Detailed reports and analytics make it easy to provide proof of working hours to authorities or works councils. In the event of a dispute, complete documentation is invaluable — and TimeTrack provides it at the click of a button.
For a comparison of the best tools on the market, we recommend our article Best Time Tracking Software for SMEs 2025.

Vacation Planning & Absence Management

Companies that plan flexible weekly working hours must accurately factor in vacation, sick leave and other absences. TimeTrack’s vacation management integrates seamlessly into working time planning — with no duplicate entries and no gaps.
You can find more information on rights and obligations around workforce scheduling in our article Duty Rosters: Rights and Obligations.

Mobile First — Record Working Time Wherever Work Happens

Whether working from home, on a construction site or in the field, employees can record their working hours from anywhere with the TimeTrack app. This is a key advantage, especially for industries with flexible work locations.

Conclusion: Act Now, Don’t Wait

The draft bill is expected in June 2026, with parliamentary consultations to follow in autumn. It will still take time before the new Working Time Act enters into force. But one thing is already clear today: electronic time recording is mandatory, and flexible weekly working time models will make working time management significantly more complex.

Companies that invest in a professional time tracking solution now benefit twice: they already meet today’s legal requirements — and they are prepared for the flexible working time models of tomorrow.
Our guide Get Started with TimeTrack in 7 Steps shows how to make the transition quickly and successfully.

👉 Try TimeTrack for Free Now and Prepare for the Working Time Reform

 

Sources: ad-hoc-news.de | Legal Tribune Online | Arbeitszeitgesetz (ArbZG) auf gesetze-im-internet.de | EuGH-Urteil C-55/18 (2019) auf EUR-Lex | DGB zur Arbeitszeitreform