An employee time tracking app digitally records working hours – via smartphone, tablet, or browser. Since the German Federal Labour Court (BAG) ruling in 2022, time tracking is mandatory in Germany. The 2025 coalition agreement establishes electronic time tracking as the standard, with transition periods for smaller businesses. Violations can result in fines of up to €30,000.

What Is an Employee Time Tracking App?

An employee time tracking app is a digital application that allows employees to record their working hours. Unlike traditional punch clocks or paper timesheets, it enables documentation of work start times, end times, and breaks directly on a smartphone, tablet, or web browser – regardless of work location.

Definition and Core Functions

The primary task of a time tracking app is to document daily working hours down to the minute. Typical core functions include clocking in and out with a single tap, automatic break recording, and overtime calculation. The recorded data is usually stored in the cloud and can be viewed and approved by supervisors or the HR department.

The term "Employee Self Service" describes the principle where employees enter their own times into the system. However, responsibility for accurate recording remains with the employer.

Distinction: Time Tracking vs. Project Time Tracking

While a standard time tracking app documents pure attendance time, project time tracking additionally records which projects or clients the working time was spent on. For the legal time tracking obligation, attendance time recording is sufficient. Project time tracking is particularly relevant for service providers and agencies that bill their services on an hourly or project basis.

Legal Framework – What Does the Law Say?

The legal situation regarding time tracking has fundamentally changed in recent years. Two landmark rulings have established the time tracking obligation in Germany.

ECJ Ruling 2019

On 14 May 2019, the European Court of Justice (ECJ) ruled in case C-55/18 that all EU member states must require employers to implement an objective, reliable, and accessible system for recording daily working hours. The purpose of this decision was to protect employees: only through systematic time tracking can maximum working hours and rest periods be effectively monitored.

German Federal Labour Court (BAG) Ruling 2022

The German Federal Labour Court (Bundesarbeitsgericht, BAG) confirmed on 13 September 2022 in decision 1 ABR 22/21 that the obligation to record working time already exists in Germany. BAG President Inken Gallner justified this with the interpretation of the German Occupational Health and Safety Act following the ECJ ruling. This means: employers have been required to systematically record their employees' working hours since October 2022.

Current Status 2025/2026

The 2025 coalition agreement between CDU/CSU and SPD provides for the introduction of electronic time tracking as mandatory for all employers. A draft bill from the Federal Ministry of Labour and Social Affairs (BMAS) specifies the requirements: employers must electronically record the start, end, and duration of daily working hours. Trust-based working time remains possible as long as documentation is ensured.

Important: The general time tracking obligation already applies now. The planned regulations primarily concern the electronic format and transition periods.

Key Features of a Time Tracking App

When selecting a time tracking app, you should distinguish between legally required core features and optional additional functions.

Core Features (Mandatory)

To meet legal requirements, a time tracking app must provide the following functions:

Recording of work start time, end time, and break times is fundamental. The system must store data in a tamper-proof manner so that subsequent changes remain traceable. According to the ECJ ruling, the system must also be accessible to employees – they must be able to view their own time data.

Audit-proof storage means that data cannot be changed unnoticed after the fact. This is relevant for official audits by customs authorities or the German Pension Insurance.

Extended Features

Depending on company size and requirements, many apps offer additional functions: automatic overtime calculation, holiday management and absence tracking, interfaces to payroll accounting (e.g., DATEV export), geofencing for location-based time tracking, and reports and analyses for management.

Geofencing allows time tracking to be restricted to specific geographic areas – such as company premises or defined construction sites. This ensures that entries are only made at the actual work location.

Data Protection and GDPR

A time tracking app processes personal data and is therefore subject to the GDPR. When making your selection, pay attention to the following criteria: Data should be stored on servers in the EU, ideally in Germany. The system must offer clear access controls – not everyone should be able to see all data. Retention periods should be configurable. In companies with a works council, there is also a right of co-determination under Section 87 of the Works Constitution Act (BetrVG).

Who Is Subject to the Time Tracking Obligation?

In principle, the time tracking obligation applies to all employers in Germany – regardless of industry or company size. However, the BMAS draft bill provides for transition periods and a few exceptions.

Transition Periods by Company Size

According to the planned legislation, staggered deadlines apply for the switch to electronic time tracking:

Companies with more than 250 employees have one year after the law comes into force to make the transition. Companies with fewer than 250 employees are granted a two-year transition period. Businesses with fewer than 50 employees have five years. Micro-enterprises with fewer than 10 employees are exempt from the electronic requirement and may continue to document working hours on paper.

Exceptions to the Obligation

Exempt from the time tracking obligation are senior executives with independent decision-making authority over their working hours, as well as domestic workers in private households. For all other employees – including part-time workers, mini-jobbers, and working students – the documentation obligation applies in full.

Frequently Asked Questions About Employee Time Tracking Apps

Is a Time Tracking App Mandatory?

Time tracking has been mandatory in Germany since the BAG ruling in 2022. An electronic or digital solution is not yet legally required but is targeted by the 2025 coalition agreement. For companies above a certain size, electronic recording will become mandatory with transition periods.

When Does the Electronic Time Tracking Obligation Take Effect?

The general obligation to record working time has applied since October 2022. The electronic requirement is provided for in the BMAS draft bill, though the exact entry into force is still pending. After entry into force, staggered transition periods of one to five years will apply depending on company size.

Can Employees Record Their Own Times?

Yes, this is expressly permitted and common in practice. However, responsibility for accurate recording remains with the employer. The employer must provide the system and should implement an approval process through supervisors.

How Long Must Time Tracking Data Be Retained?

There is no uniform legal requirement. In practice, it is recommended to retain working time data for at least two years. Longer periods apply for special cases such as youth labour protection or maternity protection. Digital systems significantly facilitate audit-proof archiving.

What Are the Penalties for Violating the Time Tracking Obligation?

According to the BMAS draft bill, violations can be punished with fines of up to €30,000. Additionally, there is a risk of burden of proof disadvantages in labour law disputes as well as problems during official audits. Even without a final law, violations of the Occupational Health and Safety Act are possible.

How Much Does a Time Tracking App Cost?

Free basic versions are available for freelancers and micro-enterprises. Professional solutions typically cost between €3 and €15 per employee per month. Enterprise solutions for larger companies have individual pricing. Most providers offer free trial periods of 14 to 30 days.

Is Time Tracking via App GDPR-Compliant?

Yes, if certain requirements are met: data processing on EU servers, clear access controls, compliance with retention periods, and consideration of the works council's right of co-determination. When making your selection, look for appropriate certifications.

Is Trust-Based Working Time Still Possible?

Yes, trust-based working time remains generally permitted. However, daily working hours must still be documented. This means: employees who set their own schedules must still record start times, end times, and breaks. Documentation must be audit-proof.

Conclusion

The employee time tracking app is no longer an optional tool for companies in Germany but a legal necessity. Since the BAG ruling in 2022, time tracking has been mandatory – electronic recording will become the standard with the planned legislation. Those who invest in a digital solution now create legal certainty, save administrative effort, and are prepared for future requirements.

When making your selection, you should focus on core features (tamper-proof recording of start, end, and breaks), GDPR compliance, and suitable interfaces to your existing HR software.

Would you like to learn more about modern HR solutions? Learn more about Aivy

Sources

• European Court of Justice (2019). Ruling on Working Time Recording (C-55/18). https://curia.europa.eu/juris/document/document.jsf?docid=214043&doclang=EN
• German Federal Labour Court (2022). Decision on Time Tracking Obligation (1 ABR 22/21). https://www.bundesarbeitsgericht.de/presse/einfuehrung-elektronischer-zeiterfassung-initiativrecht-des-betriebsrats/
• Federal Ministry of Justice. Working Hours Act (Arbeitszeitgesetz, ArbZG). https://www.gesetze-im-internet.de/arbzg/
• Federal Ministry of Justice. Occupational Health and Safety Act (Arbeitsschutzgesetz, ArbSchG). https://www.gesetze-im-internet.de/arbschg/
• CDU/CSU and SPD (2025). Coalition Agreement – Responsibility for Germany. https://www.bundesregierung.de
• IHK Berlin: Information Sheet on Working Time Recording
• BITKOM: Studies on HR Digitalisation