Business Associations Demand 48-Hour Weekly Limit as Germany Rethinks Working-Time Rules
02.07.2026 - 10:34:23 | boerse-global.de
Germany’s coalition committee has been negotiating a reform package that includes both tax relief and a major overhaul of the country’s working-time law. Two relief options are on the table, with a combined volume ranging from 17 billion to 28 billion euros. Under discussion is an increase in the basic tax-free allowance to between 12,900 and 13,084 euros.
But the centrepiece of the talks is a shift from a daily to a weekly maximum working time. Business groups are pushing hard for swift implementation.
The Federal Association of Law Firms (Bundesverband der Wirtschaftskanzleien) is calling for a weekly cap of 48 hours, with daily hours allowed to reach up to 12. In addition, the associations propose a voluntary opt-out model that, in line with EU directives, would permit up to 60 hours per week.
Criticism is already mounting over the current working papers from the Federal Ministry of Labour. These papers require electronic time recording for companies with ten or more employees, but they omit the desired switch to a weekly work-time framework. Another measure that has yet to take effect is the tax exemption on overtime premiums. A draft from September 2025 would make premiums for extra work beyond collective-bargaining full-time hours tax-free up to 25% of the base wage.
Meanwhile, new obligations have been in force since 1 July for the logistics sector. In cross-border freight transport, vehicles over 2.5 tonnes must now use digital tachographs across the EU. The aim is stricter monitoring of driving and rest times.
There are also clarifications on travel and journey times. Trips to external job sites count as compensable working time, but the commute from home to the regular workplace remains a private matter.
Correctly recording working hours continues to pose a challenge. According to surveys, 13% of employees do not regularly log their time accurately. Experts from the Institute for Applied Labour Science warn of significant economic consequences from time fraud.
At companies using electronic systems, compliance with the GDPR is mandatory. Data minimisation and purpose limitation are the key priorities. Many small and medium-sized enterprises are turning to local storage solutions, thereby avoiding the risks of data transfers to third countries and simplifying adherence to works council co-determination rights.
