What is a working time account?

A working time account is an instrument for the flexible organization of working time, in which the actual hours worked by an employee are recorded and compared with the contractually agreed target working hours. This results in plus or minus hours that can be balanced out over a defined period of time. The aim is to meet both the employees’ need for flexibility and the company’s requirements, although the provisions of the Working Hours Act (ArbZG) must be observed.

Structure and mode of operation

Working time accounts make it possible to organize working hours flexibly by documenting and compensating for deviations from regular working hours. The recorded hours are credited or debited to the account depending on whether more or less than the agreed working hours have been worked. Compensation usually takes place within a fixed period of time, which is regulated by contract or collective agreement.

Types of working time accounts

Short-term accounts: These accounts record deviations in working hours over a short period of time, usually within a year. They are used for short-term compensation of overtime or undertime.
Long-term accounts (credit balances): Long-term accounts make it possible to save up working time credits over a longer period of time, for example to finance sabbaticals, parental leave or early retirement. These accounts are subject to special statutory regulations and must be protected against insolvency.

Advantages of working time accounts

For employees:

Increased flexibility in the organization of working hours.
Better work-life balance.
Possibility of converting overtime into time off.

For employers:

Adaptation of working hours to operational requirements.
Reduction of idle time and overtime pay.
Increasing employee motivation and loyalty.

Challenges and legal aspects

The introduction and management of working time accounts requires clear regulations, particularly with regard to.

Documentation of working hours and management of working time accounts.
Regulations on compensation for overtime and undertime.
Compliance with legal requirements, such as maximum daily working hours and required rest periods.

In Germany, the introduction of working time accounts is subject to co-determination if a works council exists. They must also comply with the requirements of the Working Hours Act (ArbZG) and the Verification Act (NachwG).

Conclusion

Working time accounts offer a flexible solution for organizing working time that meets both the needs of employees and the requirements of the company. They can be successfully implemented and used thanks to clear regulations and transparent communication.