Frequently Asked Questions

Germany: Are there any legal restrictions as regards working hours a German startup should consider in respect of its employees?

The Working Time Act (Arbeitszeitgesetz ArbZG) sets out mandatory requirements and limits for working time in Germany. In principle, it applies to all employees in Germany (except executives). Regulations that violate the law are ineffective. Companies tolerating more than the permitted working time or that do not comply with other statutory requirements may face fines of up to EUR 15,000.00 per breach. Unfortunately, the rather strict rules of the Working Time Act have not yet been adapted to the modern working world and generally give companies little flexibility.

Attention: The Working Time Act obliges the employer to record employees’ working hours once they exceed eight hours. These records must be kept for at least two years. Violations of this recording obligation can be punished with fines up to EUR 15,000.00. Quite recently, however, the Federal Labor Court ruled that, from the point of view of occupational health and safety law, a complete recording of working time may be required. In which cases and to what extent exactly this has to be done is not yet entirely clear.

As a rule, working time may not be more than eight hours per working day. Working time means the time from the beginning to the end of daily work, not including breaks. Working days are from Monday to Saturday, however, in most tech companies a five-day week is common.

Working time can be extended to up to ten hours per working day if it does not exceed an average of eight hours per working day within six calendar months or within 24 weeks.

Work on Sundays and public holidays is generally prohibited. There is an extensive list of exceptions though, but it is not relevant for most startups.