{"id":31051,"date":"2026-07-28T11:09:08","date_gmt":"2026-07-28T09:09:08","guid":{"rendered":"https:\/\/zmi.de\/works-council-and-time-tracking-implementation-in-practice\/"},"modified":"2026-09-22T09:43:50","modified_gmt":"2026-09-22T07:43:50","slug":"works-council-and-time-tracking-implementation-in-practice","status":"publish","type":"post","link":"https:\/\/zmi.de\/en\/works-council-and-time-tracking-implementation-in-practice\/","title":{"rendered":"Works Council and Time Tracking: Co-determination, Company Agreement, and Practical Implementation"},"content":{"rendered":"\t\t
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\ud83e\udd1d When must the works council be involved in the implementation of a time tracking system?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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Many companies face the same question when it comes to works councils and time tracking<\/i>: Is it enough to simply select and then implement time tracking software, or does the works council need to be involved as early as the planning phase?<\/p>

Whenever an electronic time-tracking system is to be introduced or significantly modified, the works council\u2019s rights of co-determination must be reviewed. This applies in particular when the software used is capable of collecting or analyzing information about employees\u2019 behavior or performance. <\/p>

In practice, this applies to most digital time-tracking systems. They not only record the start and end times of work shifts but also track, for example, breaks, overtime, absences, and shift schedules. Many solutions also offer comprehensive analysis and reporting features. About ZMI’s time tracking software.<\/a><\/p>

The decisive factor here is not whether the employer intends to conduct surveillance. Rather, what matters is that the system objectively offers the possibility of obtaining such information. This potential for surveillance alone typically triggers the right to co-determination under \u00a7 87(1)(6) of the Works Constitution Act (BetrVG). <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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\u2696\ufe0f The legal basis: Section 87(1)(6) of the BetrVG <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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The right to co-determination regarding the introduction of electronic time-recording systems is derived from Section 87(1)(6) of the Works Constitution Act. It states: <\/p>

“In the absence of statutory or collective bargaining provisions, the works council shall have the right to participate in decision-making on the following matters: the introduction and use of technical equipment designed to monitor employees’ behavior or performance.”<\/p>

This provision protects employees from the unilateral implementation of technical systems that allow conclusions to be drawn about their behavior or work performance.<\/p>

\ud83d\udc49 Digital time tracking often falls under this regulation. Working hours are stored electronically, changes are documented, and reports are generated automatically. This creates the potential for surveillance, regardless of whether the employer actually uses these capabilities. <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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\u261d\ufe0f Why electronic time tracking is subject to co-determination<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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Modern time tracking is no longer limited to simply recording when employees arrive and leave. These systems are often a central component of digital human resources management. Depending on the range of features, the following information\u2014among other things\u2014can be analyzed: <\/p>

\u2705 Start and end of the daily work shift<\/p>

\u2705 Compliance with required breaks<\/p>

\u2705 Overtime and Time Accounts<\/p>

\u2705 Absences<\/p>

\u2705 Shift schedules<\/p>

\u2705 Time adjustments<\/p>

\u2705 Project hours, job hours, or cost center hours<\/p>

Such data can provide insights into work processes and the behavior of individual employees. For this reason, electronic time-tracking systems are generally subject to employee participation. <\/p>

\ud83d\udca1 The assessment may differ if working hours are documented exclusively by hand and there are no technical means of analysis or verification. However, such situations now play only a minor role in day-to-day business operations and are not recommended from a compliance perspective, given the case law of the European Court of Justice (ECJ) and the Federal Labor Court (BAG), as well as the upcoming legal requirement for time tracking. <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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\ud83d\udcc4 What rights does the works council have when a time tracking system is implemented?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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It is often assumed that the works council can demand the implementation of a time tracking system on its own. However, this assumption does not align with current case law. According to the ruling of the Federal Labor Court (BAG) dated September 13, 2022, the works council generally does not <\/b> have the right to initiate the introduction of a time-tracking system <\/b>(more on this).<\/a> <\/b>Employers are already required by law to track their employees’ working hours.<\/p>

The right to co-determination therefore primarily concerns the specific structure of the system. For example, the employer and the works council must agree on <\/p>

\ud83d\udd35 What data is collected,<\/span><\/p>

\ud83d\udd35 which features are used,<\/span><\/p>

\ud83d\udd35 which analyses are permitted,<\/span><\/p>

\ud83d\udd35 Who is allowed to access what information,<\/span><\/p>

\ud83d\udd35 how long work time data is stored and<\/span><\/p>

\ud83d\udd35 What technical and organizational measures are in place to protect the data.<\/span><\/p>

\ud83d\udc49 If the two sides cannot reach an agreement, the conciliation board will decide on the provisions subject to co-determination.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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\ud83d\udea8 An Overview of Recent Case Law<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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ECJ: Employers Must Track Work Hours<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In its judgment of May 14, 2019 (C-55\/18), the European Court of Justice ruled that Member States must require employers to establish an objective, reliable, and accessible system for recording working hours. The aim of this decision is to ensure the effective enforcement of working time regulations and to protect maximum working hours and rest periods. <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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BAG: Co-determination remains in place; there is no right to initiate referendums<\/u><\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In its decision of September 13, 2022 (1 ABR 22\/21), the Federal Labor Court clarified that the works council does not have the right to initiate the introduction of a time-recording system. However, its right to co-determination under Section 87(1)(6) of the Works Constitution Act (BetrVG) remains unaffected. As soon as an electronic time-recording system is to be introduced or modified, the works council must be involved in its design. <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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\ud83e\uddd0 What does this mean for businesses?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Selecting time tracking software is only one part of the project. Legal and organizational preparation is just as important. Companies should involve the works council in the planning process as early as possible<\/b> and work together to define the goals of the time tracking system. Is the goal to comply with legal documentation requirements, simplify payroll processing, or increase transparency regarding working hours and overtime? A shared understanding makes it easier to draft the works council agreement later on. <\/p>

Open communication with employees is just as important. Explaining in a clear and understandable way what data is collected, who has access to it, and how it is used builds trust and increases acceptance of the new system. This creates a seamless digital flow of information without duplicate data entry. <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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\ud83d\udcdc What should a company policy on time tracking cover?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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A works agreement sets forth binding provisions on how a time-tracking system is to be used within the company. It provides legal certainty for employers and employees and specifies the works council\u2019s rights to co-determination. The specific provisions required depend on the company and the system in use. However, there are certain points that should be included in every works agreement. <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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1\ufe0f\u20e3 Purpose of Time Tracking<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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At the outset, it should be clearly defined why the time-tracking system is being implemented. Typical goals include complying with legal documentation requirements, calculating working hours, maintaining time accounts, and workforce planning. <\/p>

Equally important is a clear limitation of purpose. The data collected may be used exclusively for the agreed-upon purposes. For example, if the system is not intended to be used for performance or behavioral monitoring, this should be explicitly<\/b> stated in the works agreement. <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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2\ufe0f\u20e3 What data is collected?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Employees should be able to understand what information the system stores. Therefore, it is recommended to list the processed data as specifically as possible. This includes, for example: <\/p>

\ud83d\udd35 Start and end of the workday<\/p>

\ud83d\udd35 Breaks<\/p>

\ud83d\udd35 Overtime<\/p>

\ud83d\udd35 Absences<\/p>

\ud83d\udd35 Time Accounts<\/p>

\ud83d\udd35 Shift Information<\/p>

\ud83d\udd35 Project, order, or cost center entries (to the extent they are necessary for operational processes)<\/p>

\ud83d\udc49 Not every feature of a software program needs to be used. Often, it is sufficient to collect only the data that is actually needed for the intended purpose. This is also in line with the principle of data minimization under the GDPR. <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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3\ufe0f\u20e3 Clearly Define Access Rights<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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A common point of contention is the question of who is allowed to view what information. The company policy should therefore include a clear framework for roles and access permissions. One possible model, for example, looks like this: <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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