Time Tracking Obligation: ECJ Ruling, Case Law & What Applies in 2026

April 10, 20266 min read

The ECJ Ruling: Obligation to Record Working Hours

In May 2019, the European Court of Justice (ECJ) issued a landmark ruling (Case C-55/18): All EU member states must require employers to set up a system to measure the daily working time of their employees. This made it clear that trust-based working time without any documentation is no longer permissible in the EU.

The ruling refers to the EU Working Time Directive (2003/88/EC) and the EU Charter of Fundamental Rights. The key message: Without an objective, reliable, and accessible system for recording working hours, neither maximum working hours nor rest periods can be effectively monitored.

What Does This Mean for Companies?

Following the ECJ ruling, many EU member states have begun implementing national legislation to enforce systematic working time recording. The core requirements are consistent across the EU:

Start, end, and duration of daily working hours must be recorded
The recording must be objective and reliable
The data must be accessible, meaning it must be available to employees upon request
Breaks and rest periods must be documented in a traceable manner

The specific implementation is left to employers. Handwritten notes are theoretically possible but are neither reliable nor efficient in practice.

Update 2026: Electronic recording is approaching

German legislators are working on a reform of the Working Time Act (ArbZG) that is expected to make electronic recording of working time mandatory. The coalition agreement contains corresponding provisions, and a draft bill is expected in the course of 2026 – presumably with staggered transition periods for smaller companies.

For employers this means: those still relying on paper or Excel will foreseeably have to switch again. All details on the expected new rules, transition periods, and an implementation checklist can be found in our article Time Tracking Obligation 2026: What Employers Need to Know.

What Risks Exist for Non-Compliance?

Companies that fail to introduce working time recording face several consequences:

Fines: Violations of working time regulations can result in significant penalties
Burden of proof: In disputes over overtime, the burden of proof falls on the employer if no documentation exists
Works council conflicts: The works council has an initiative right regarding the introduction and design of time recording
Liability risks: Lack of documentation can lead to liability in cases of workplace accidents or working time violations

How Companies Can Implement the Obligation Efficiently

The good news: Implementation doesn't have to be a complex IT project. Modern time tracking tools can be integrated into existing work environments without installing new software or training employees.

For companies already using Microsoft Teams, an integrated solution is ideal. timeghost Time Tracking works directly within Teams and enables:

Check-in/check-out with one click directly in the Teams app
Automatic recording of Teams calls and Outlook appointments
Break documentation in accordance with legal requirements
Overtime calculation based on configured working time models
Export and reporting for payroll and the works council

Trust-Based Working Time and Time Recording: Not a Contradiction

A common misconception: Time recording does not mean the end of trust-based working time. The ECJ ruling requires documentation of working hours, not the restriction of flexible working models.

Employees can continue to work flexibly, organise their working time freely, and work from different locations. Recording simply ensures that legal maximum working hours and rest periods are observed — protecting both employees and employers.

Conclusion: Act Now Rather Than Wait

The obligation to record working hours is not a future prospect — it already applies. Companies that have not yet introduced a system should act promptly. The sooner a reliable system is in place, the lower the risk and the smoother the transition.

For the current status and checklist, see Time Tracking Obligation 2026. Teams users can meet the obligation with work time tracking in Microsoft Teams in minutes — no extra tool, no training marathon. The effort for employees: one click.

Sources and further information

CJEU, Judgment of 14 May 2019, Case C-55/18 (CCOO v Deutsche Bank)
German Federal Labour Court (BAG), Decision of 13 September 2022, Ref. 1 ABR 22/21
EU Working Time Directive 2003/88/EC
German Working Hours Act (ArbZG), in particular §§ 3, 5, 16
Time Tracking Obligation 2026: What Employers Need to Know
Work time tracking in Microsoft Teams

This article is for general information purposes only and does not constitute legal advice. For a binding legal assessment, please consult a specialised lawyer. Content created with AI assistance and editorially reviewed. Current as of April 2026.

About the Author

timeghost Team

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