Working Hours Act (ArbZG)

Basics and objectives

Since it came into force on July 1, 1994, the Working Hours Act (ArbZG) has formed the central legal framework for the organization of working hours in Germany. Its primary purpose is to protect the health of employees by setting maximum working hours, minimum rest periods and break regulations. The Act transposes the European Working Time Directive into national law and thus ensures uniform minimum standards within the European Union. The provisions of the ArbZG are largely mandatory and cannot be waived to the detriment of employees. The law generally applies to all employees, although there are special regulations for certain sectors and activities. Compliance with the regulations is monitored by the competent supervisory authorities of the federal states, whereby violations can be punished with severe fines or even criminal sanctions. The importance of the ArbZG is reflected in its formative effect on the organization of working hours in companies and the work-life balance of employees. The digitalization of the world of work and new forms of flexible working time models pose new challenges to the traditional regulations of the ArbZG. The case law of the Federal Labor Court and the European Court of Justice is continuously developing the interpretation of working time law. The social debate surrounding the compatibility of work and family and new working time models such as the four-day week is influencing the further development of the legal framework.

Working time limits and basic standards

The Working Hours Act sets a fundamental limit of eight hours per working day, which may only be extended to a maximum of ten hours under certain conditions, whereby the eight hours per working day may not be exceeded on average over six calendar months or 24 weeks. The minimum rest period between two work shifts is generally eleven consecutive hours, which is intended to ensure a sufficient recovery period for employees. The legally prescribed rest breaks must be at least 30 minutes for working hours of more than six hours and at least 45 minutes for working hours of more than nine hours, whereby the break can be divided into sections of at least 15 minutes each. Rest on Sundays and public holidays enjoys special protection, although exceptions are only permitted for legally defined sectors and activities. The employer must systematically document the recording of working hours, which was once again emphasized by the most recent ECJ ruling. The flexibility options provided by collective agreements or company agreements allow working hours to be adapted to specific sectors and companies. The consideration of on-call duty and standby duty is subject to special regulations that are continuously being specified by case law. Mobile working and working from home place new demands on compliance with and monitoring of working time limits. The digitalization of the working world requires modern systems for recording and monitoring working hours. The importance of work-life balance is leading to new working time models that must be designed within the legal framework. The globalization of the economy and international cooperation require flexible solutions in compliance with legal limits.

Exceptions and special regulations

The Working Hours Act contains a differentiated system of exemptions intended to take account of the special requirements of certain sectors and activities. The healthcare sector enjoys far-reaching exemptions due to its special care tasks, whereby the maximum working hours must be compensated by corresponding compensation regulations. Transport companies are subject to specific working time regulations that take into account the special features of public transport and safety requirements. The agricultural sector benefits from special regulations during the harvest season in order to be able to cope with seasonal peaks in workload. The catering and hotel industries can make use of extended working time frameworks, but must ensure appropriate compensation periods. The emergency and rescue services are exempt from certain restrictions on working hours in order to ensure that they are always on standby. Scientific research enjoys privileges in the organization of working hours, particularly for time-critical research projects. The media industry has special regulations for current reporting and productions. The public sector can deviate from the general working time limits in certain areas if this is necessary to maintain services of general interest. Security services can provide for longer working hours due to their special tasks. The possibilities for flexibilization through collective agreements allow for sector-specific solutions, taking into account the respective special features. The exceptions must always be proportionate and must not disproportionately affect the health protection of employees.

Working time recording and documentation obligations

The obligation to systematically record working time has been given a new dimension by the groundbreaking ECJ ruling of May 2019, according to which employers are obliged to set up an objective, reliable and accessible system for recording daily working time. The documentation obligations extend to the start, end and duration of daily working hours, whereby break times and overtime must also be recorded. The technical implementation of time recording can be carried out using various systems, from traditional time clocks and electronic time recording systems to modern app-based solutions for mobile working. The retention obligation for time sheets is at least two years, whereby the documentation must be presented to the supervisory authorities upon request. The particular challenge with mobile working and working from home lies in the reliable recording of actual working hours outside company premises. The involvement of the works council in the introduction and design of time recording systems is mandatory due to the right of co-determination under Section 87 BetrVG. The link between working time recording and data protection requires particular care when implementing the systems and processing the data collected. The recording of on-call duty and standby duty must take into account the special requirements of these forms of work. The integration of working time recording into existing HR systems enables efficient management and evaluation of working time data. The monitoring of compliance with working time regulations by the supervisory authorities requires proper documentation. The sanctions for breaches of documentation obligations can result in substantial fines and, in the event of a repeat offense, criminal penalties. The increasing digitalization of the world of work requires flexible and at the same time legally compliant solutions for recording working hours.

Rest periods and break regulations

The legally prescribed minimum rest period of eleven consecutive hours between two work assignments serves the basic health protection of employees and can only be undercut in strictly limited exceptional cases. The break regulations stipulate a minimum break of 30 minutes for working hours of more than six hours, which is increased to at least 45 minutes for working hours of more than nine hours, whereby breaks of at least 15 minutes are permitted. The position of the breaks must be determined in advance and must not coincide with the start or end of working time in order to ensure their recovery function. The interruption of the rest period due to business contact or work assignments generally leads to a restart of the eleven-hour rest period. The particular challenges of shift work require careful planning of rest periods and breaks, taking into account the findings of occupational science. Monitoring compliance with rest periods is becoming increasingly important in the context of working from home and mobile working. Case law has specified the requirements for rest periods and emphasized the importance of the uninterrupted recovery phase in particular. The options for structuring rest periods under collective agreements must guarantee basic health protection. Company practice must implement effective control mechanisms to ensure compliance with rest periods. In addition to official sanctions, violations of rest and break regulations can also have consequences under liability law. The work-life balance of employees is significantly influenced by compliance with rest periods. The increasing dissolution of work boundaries through digital means of communication requires clear regulations to protect rest periods.

Work on Sundays and public holidays

The constitutionally protected rest on Sundays and public holidays is a fundamental principle of German working time law, which can only be breached by legally defined exceptions. The permissible exceptions for Sunday work are regulated conclusively in Section 10 ArbZG and include, in particular, emergency and rescue services, hospital and care facilities, catering and production processes that cannot be interrupted for technical reasons. The granting of a substitute rest day within a period of two weeks is mandatory if work is carried out on a Sunday, whereby at least 15 Sundays per year must remain work-free. The official approval of exceptions for work on Sundays and public holidays is only granted under strict conditions and requires a detailed justification of the operational necessity. The involvement of the works council in the introduction of work on Sundays and public holidays is ensured by mandatory co-determination rights and also includes the organization of working hours and compensation arrangements. Remuneration for work on Sundays and public holidays is often made more attractive by means of collectively agreed surcharges, although the actual amount of the surcharges varies from sector to sector. The social debate surrounding the expansion of Sunday work, particularly in the retail sector, shows the tensions between economic interests and the traditional protection of Sundays. The European dimension of Sunday protection is shaped by the case law of the European Court of Justice, which gives the member states a wide margin of discretion when regulating Sunday work. The digitalization of the world of work is leading to new challenges when it comes to differentiating between permissible and impermissible Sunday work, particularly in the context of working from home and international cooperation. The monitoring of compliance with Sunday rest by the supervisory authorities focuses on sectors with known violations. The sanctions for violations of the ban on Sunday work can result in substantial fines and, in the event of a repeat offense, criminal penalties. The cultural and social significance of the work-free Sunday remains an important social value despite economic changes.

Future prospects and challenges

The organization of working time is facing fundamental changes due to the digital transformation of the world of work, with the clear distinction between working time and rest time becoming increasingly blurred. The development of new working time models such as the four-day week or flexible annual working time accounts requires an adaptation of the legal framework while maintaining basic health protection. The increasing importance of working from home and mobile working poses new challenges for traditional concepts of working time recording and control, which require innovative technical and organizational solutions. International collaboration in different time zones leads to conflicts with the rigid working time limits of the ArbZG and requires flexible solutions. The integration of artificial intelligence and automated systems into working time planning opens up new possibilities for efficient and healthy working time organization. Demographic developments and the shortage of skilled workers are reinforcing the trend towards more flexible working time models that better meet the individual needs of employees. The work-life balance is becoming an increasingly important social issue and requires innovative concepts for reconciling work and private life. The European harmonization of working time legislation is being driven forward by new directives and the case law of the European Court of Justice. The mental stress caused by constant availability and work intensification requires new approaches to protect employees. The importance of co-determination in the organization of working time is further strengthened by the increasing complexity of working time models. The development of trust-based working hours and results-oriented forms of work is challenging the traditional concept of time recording. The future of working time organization will be significantly shaped by the balance between flexibilization and health protection.