Crafts Sector Fumes Over Germany’s New Digital Time-Track Law as Deadlines Vary by Company Size
Published on 07/09/2026 at 12:24 | Redaktion boerse-global.de
Germany’s flagship labour-market modernisation plan got a cold reception from the country’s powerful crafts sector this week, with the Central Association of German Crafts accusing the government of ignoring on-the-ground realities and breaking coalition promises. At the heart of the dispute: mandatory electronic time recording, set to roll out in staggered phases depending on how many people a business employs.
The draft law, tabled by Labour Minister Bas in June, responds to years of court rulings. In 2019, the European Court of Justice required EU states to force employers to keep reliable records of working hours. Germany’s Federal Labour Court confirmed that obligation in 2022. Even now, firms must document when shifts start, stop and how long they last. What changes is the format: everything must shift to digital, minute?by?minute logs of start, end, breaks and overtime. Data has to be compiled weekly and stored for at least two years.
Trust?based working time and mobile work remain legally permitted, as long as the time framework is properly recorded.
The government has built a graduated timetable to cushion the burden. Companies with more than 250 employees must switch to digital tracking within one year of the law entering force. Mid?sized firms – those with 50 to 249 staff – get two years. Small businesses with 10 to 49 employees can take up to five years. Micro?enterprises with fewer than ten workers are permanently exempt and may keep paper records. Executives, managing directors and chief physicians do not need to be recorded at all. Violations could draw fines from occupational safety authorities.
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The crafts association, representing hundreds of thousands of workshops and tradespeople, wants tougher exemptions and more flexibility. It insists that the current carve?outs, which rely heavily on collective agreements, do not suit the sector’s diverse structure.
The time?tracking measure is one plank of a broader overhaul. Chancellor Merz, in his government statement, outlined a 34?point reform package that includes annual tax relief of €10 billion, more flexible labour rules and changes to fixed?term contracts and basic income support. The government is forecasting economic growth of 0.5 percent for 2026. Opposition parties are warning about the social consequences of the planned cuts, particularly ahead of a health?savings package due to be presented on Friday.
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