Flexitime: Definition, Models, Benefits and the Right Time Recording

Flexible working hours have become firmly established in German companies. According to the representative study “Working Time 2024" by the Institute for Labour Market and Vocational Research (IAB), 38.7 percent of German companies with more than 20 employees already use flexitime models. For companies with over 500 employees, the proportion even rises to 67.2 percent. The Randstad Work Barometer Study also shows that 73 percent of employees rate flexible working hours as the most important factor when choosing an employer.

But what exactly does flexitime mean? What flexitime models are there? And how can flexible working hours be managed efficiently and in a legally secure manner? This guide explains everything important about flexitime regulations, legal principles and the central role of digital time recording.

What does flexitime mean? Definition and basics

Flexitime is a flexible working time model in which employees can determine their daily working hours themselves within defined limits. Unlike fixed working hours, employees do not have to start or stop at a precisely specified time. Instead, they can flexibly start and finish their work within a defined time frame — the so-called flexitime frame.

The importance of flexitime lies primarily in the better reconciliation of work and private life. For example, employees can start earlier to attend personal appointments in the afternoon, or start later when family obligations require it. The total working time per day or week remains contractually defined.

With fixed working hours, the start and end of work are clearly defined, for example from 9:00 a.m. to 5:00 p.m. All employees must be present at the same time. With flexible working hours, on the other hand, there is a time corridor within which employees can control their presence themselves. The main difference lies in individual design freedom, while the contractual weekly working time remains the same.

Flexitime in Employment Law: Regulations under the Working Hours Act

Section 3 of the Working Hours Act (ArbZG) Limit working hours to eight hours. Section 3 Sentence 2 ArbZG allows an extension of up to ten hours if an average of eight hours is not exceeded on weekdays within six calendar months or 24 weeks. These regulations also apply without restriction to flexitime models.

Section 5 (1) Working Hours Act requires employees to have an uninterrupted rest period of at least eleven hours after the end of daily working hours. This regulation also applies in full to flexible working time models. Exceptions are only possible in the areas mentioned in Section 5 (2) ArbZG, such as hospitals or restaurants and under the conditions defined there.

Important note: Flexitime does not mean that employees can work indefinitely. The maximum working hours and minimum rest periods remain in place. Employers are required to monitor compliance with these requirements. Accurate time recording is therefore essential.

Core working hours and legal framework

Core working time refers to a period defined by the company during which all employees must be present. According to the case law of the Federal Labour Court (judgment of April 15, 1986, file no. 1 AZR 167/84), core working hours must be clearly defined in a works agreement or in an employment contract. It must not be so extensive that the flexibility character of flexitime is lost.

The legal framework for flexible working time models is typically set out in a works agreement or in an employment contract. Details such as flexitime frames, core working hours, overtime regulations and time compensation are precisely defined there.

Participation by the Works Council

After Section 87 (1) No. 2 Works Constitution Act (BetrVG) The Works Council has a mandatory right of participation in the beginning and end of daily working hours, including breaks and the distribution of working time over the individual days of the week. In its decision of March 18, 2014 (file no. 1 ABR 73/12), the Federal Labour Court clarified that this also applies to flexible working time models such as flexitime.

When introducing flexitime arrangements, the employer cannot therefore implement a model unilaterally. Instead, a works agreement must be negotiated that regulates all essential aspects: flexitime frames, core working hours, overtime regulations, documentation requirements and control mechanisms. This participation protects the interests of employees and ensures transparent, fair regulations within the company.

An overview of the most important flexitime models

There are various flexitime models, which differ in terms of flexibility and framework conditions. The choice of the appropriate model depends on the company structure, industry and employee needs.

Flexitime with core working hours

This is the classic and most widely used model. Employees can freely choose their start and end of work within a flexitime frame, but must be present during core working hours. An example: Flexitime frame from 7:00 a.m. to 7:00 p.m., core working hours from 10:00 a.m. to 3:00 p.m. Employees could therefore start at 7:00 and leave at 3:30 or start at 9:30 and work until 18:00.

Flexitime without core working hours

With this model, the mandatory attendance time is completely omitted. Within a defined framework, employees are completely free to decide when to work as long as the agreed weekly working time is achieved. This flexitime model requires a high degree of personal responsibility and trust and works particularly well in companies with digital work structures and low dependence on fixed attendance times.

Qualified flexitime

Qualified flexitime is a working time model in which overtime and undertime are netted over a defined compensation period. According to the case law of the Federal Labour Court (judgment of December 19, 2018, file no. 5 AZR 262/18), the compensation period must be defined in an employment contract or in a works agreement. Periods of three to twelve months are usual. The balance must not exceed certain limits. This model offers maximum flexibility and is particularly suitable for project-based work with fluctuating workloads.

Flexitime with function time

This ensures a minimum staffing at specific times without all employees having to be present at the same time. The team is organized independently in such a way that the necessary functionality — for example for customer service or team coordination — is guaranteed. This flexitime model combines flexibility with operational requirements.

Annual working time and working life

These long-term models do not look at working hours on a daily or weekly basis, but over an entire year or even the entire length of service. Employees can work more during labor-intensive phases and less during quieter periods as long as the annual quota is reached. Lifetime accounts even make it possible to save working time for years, for example for sabbaticals or earlier retirement.

Benefits of Flexitime for Employees and Employers

A long-term study by the German Society for Personnel Management (DGFP) with 1,200 companies over three years shows: Employees in flexitime models have 23 percent fewer sick days and an 18 percent higher productivity rating from supervisors. The Gallup Engagement Index 2024 also confirms a direct link between working time flexibility and emotional employee loyalty.

Benefits for Workers

The benefits of flexitime for employees are obvious: Employees can better adapt their working hours to personal circumstances. Whether it's childcare, doctor's appointments, continuing education or simply the individual performance curve — flexible working hours enable a significantly better work-life balance. Commuting stress is also reduced when peak times can be avoided. Self-determination over one's own time noticeably increases satisfaction and motivation.

Benefits for Employers

Companies also benefit significantly from flexitime models. Flexible working hours increase attractiveness as an employer and make it easier to attract and retain qualified specialists. Motivated employees with a good work-life balance are more productive and less likely to get sick. In addition, it is easier to cover peak times when employees can arrange their presence flexibly. Flexitime therefore directly contributes to business efficiency.

Challenges and Drawbacks

Despite the benefits, flexitime also comes with challenges. Accurate time recording is becoming more complex because not all employees are present at the same time. Communication and coordination within a team require more coordination effort. Not all jobs are suitable for flexible working hours: for example in shifts or for customer-related tasks with fixed service hours. There is also a risk that employees will exceed their limits and work too much if there is no clear overtime regulation.

Flexitime and Overtime: Rules for Time Compensation

Overtime in the legal sense exists when the regular working time agreed in the employment contract is exceeded. In the case of flexitime models, a distinction must be made between the contractual target working time and the actual working time worked. In its judgment of August 17, 2011 (Case 5 AZR 406/10), the Federal Labour Court defined that overtime only counts as an overtime subject to remuneration if it was ordered, approved or tolerated by the employer.

In contrast to fixed working hours, the distinction between flexitime is less clear, as employees organise their own working hours. A clear provision in the works agreement or in the employment contract is therefore essential: At what threshold are overtime hours considered overtime? Does overtime have to be approved in advance? How are they compensated or remunerated?

Overtime account and time off

Many companies work with an overtime account or working time account, which accounts for plus and minus hours. If an employee exceeds the target working time, he accumulates plus hours, which can later be reduced by compensating for time off. Conversely, there may be minus hours, which must be compensated for by overtime. This flexibility only works with precise time recording and clear limits for time credits and debts in order to maintain a fair balance.

Break regulations during flexitime: legal requirements

According to Section 4 Working Hours Act, employees must take a break of at least 30 minutes if they work more than six to nine hours. If you work more than nine hours, the minimum break is 45 minutes. The breaks can be divided into periods of at least 15 minutes each (Section 4 sentence 2 ArbZG). Breaks are not counted as working hours and must be documented accordingly.

Compliance with break regulations during flexible working hours requires careful time recording. Employees must correctly record breaks, either by manually booking or automatic breaks after a defined period of work. Modern time recording systems can help here by reminding employees of breaks or automatically including minimum breaks to ensure legal requirements.

The Role of Time Recording During Flexitime

The obligation to systematically record working time results from the combination of EU law and national law. The European Court of Justice ruled in its judgment of May 14, 2019 (case. C-55/18) states that Member States must oblige employers to set up an objective, reliable and accessible system for measuring working time worked on a daily basis. The Federal Labour Court specified this in its judgment of September 13, 2022 (file no. 1 ABR 22/21) for German law. that Federal Ministry of Labor and Social Affairs (BMAS) Provides comprehensive information about this.

With flexitime models, seamless and precise time recording is not only recommended, but required by law. Flexitime also means that the start, end of work and breaks vary individually. Without digital time recording, administration quickly becomes confusing and prone to errors.

Reliable time recording protects both employers and employees: It documents the actual working time worked, prevents unpaid overtime, enables fair compensation of overtime and ensures compliance with legal requirements. Without accurate data, payslips cannot be created correctly nor overtime accounts can be managed transparently.

Time tracking apps and digital tools

Digital time recording has long since replaced manual time sheets and time clocks. Modern time recording software offers numerous advantages: Employees can conveniently record their working hours via app — at work, working from home or on the go. Employers get real-time overview of attendance, working time accounts and overtime. Reports and Evaluations can be generated automatically, which significantly reduces administrative effort.

Particularly important when it comes to flexitime: The software must be able to map flexible working time models, manage individual flexitime frames and automatically calculate overtime and time compensation. Interfaces to payroll and personnel management ensure seamless processes.

Practical example: Flexitime in the agency sector

Agencies face a typical challenge: Creative employees work most productively at different times of day, while customer appointments require reliable availability. Project deadlines regularly result in overtime, which is difficult to understand. A well-thought-out flexitime model combined with digital time recording by ZEP offers the right solution here.

The initial situation in agencies

Many agencies traditionally work with fixed working hours from 9:00 a.m. to 6:00 p.m., with little flexibility and declining team satisfaction. Graphic artists and copywriters complain that their creative peak is often outside office hours. Project managers lose track of actual hours worked on intensive customer projects. Overtime is written down on paper and is regularly lost or is not billed correctly.

The Solution: Flexitime with Working Time

The flexitime model with working time has proved particularly effective in the agency industry. The flexitime frame is, for example, from 7:00 a.m. to 8:00 p.m. There is no fixed core working time. Instead, each team organizes itself independently, so that a minimum staffing is guaranteed at important times. Customer appointments are coordinated together without all employees having to be present at the same time.

Time Recording with ZEP in Agency Practice

With ZEP Employees record their working and project times on the go via app or desktop, whether in the office, working from home or at the customer's site. Particularly important for agencies: The combination of time recording and project controlling. Each recorded working hour is automatically assigned to the corresponding customer project.

The Absences & Overtime Module gives management a complete overview: Which team member has accumulated how many plus hours? Who should urgently take time off work? Automatic reconciliation with target working hours means there is no longer any unpaid overtime — an issue that often causes displeasure in the agency industry.

Project controlling meets flexitime

Particularly valuable for agencies: ZEP seamlessly combines time recording with project controlling. Management can see in real time how many hours have been spent on which customer project — regardless of when these hours were completed. This keeps projects on budget, even if the team works at different times.

Account managers can transparently prove to their customers which services have been provided. The automatic synchronization with DATEV ensures that the payroll works smoothly, including correct accounting of overtime and compensation of time off.

Typical benefits for the agency industry

Experience shows that designers start earlier and use the quiet morning hours to concentrate on layouts and designs. Copywriters with families start later and can bring their children to school without stress. For the first time, project managers have complete transparency about project times and can react in good time if budget overruns.

Overtime is consistently recorded and reduced by compensating for time off. In ZEP, all team members see their current time account and can apply for compensation days on their own. When recruiting new creative talent, flexible flexitime with professional time recording is an important argument in the competition for qualified employees.

This is how ZEP optimally supports your flexitime arrangements

How can the obligation to record working time be recconciled with the flexibility of flexitime models? With ZEP, this process is simple and efficient. Your employees can record their working hours anytime and anywhere, whether mobile from home via app or stationary in the office. The collected data is automatically synchronized so that you as an employer always have a complete overview.

The Absences & Overtime Module is at the heart of flexitime management in ZEP. The attendance and absence times of all employees can be displayed at the click of a mouse. Each employee has a personal overtime account, on which every overtime is precisely registered through automatic reconciliation with time recording. Despite flexible working hours, this provides a complete overview of accumulated plus or minus hours.

The ZEP calendar makes it easy for your employees to apply for time off to reduce overtime. Approval processes are digital — transparent and comprehensible for all parties involved. The legal break regulations are also monitored by ZEP: Even with qualified flexitime, where employees independently determine their working hours and duration, ZEP ensures that the prescribed breaks in accordance with Section 4 ArbZG are complied with. In this way, you can fulfill your duty of care as an employer without having to carry out manual checks.

Instead of relying on error-prone time sheets that can easily be lost, ZEP enables the complete digital recording of all working hours. The result: precise payroll data, legally compliant documentation and satisfied employees who can arrange their working hours flexibly, without additional administrative work for your company.

Conclusion: Implementing flexitime successfully with clear rules and digital time recording

Flexitime is an attractive and modern working time model that combines flexibility for employees with operational requirements. The various flexitime models offer a suitable solution for almost every company structure: from classic flexitime with core working hours to highly flexible annual working time accounts.

However, the success of flexitime arrangements depends on two factors: clear contractual arrangements and reliable time recording. Only precise regulations on flexitime frames, core working hours, overtime and time compensation create legal certainty for both sides. And it is only with modern, digital time recording that flexitime can be managed efficiently without additional administrative work.

Companies that want to implement flexitime should therefore rely on professional time recording solutions right from the start. This makes flexible working hours not a challenge, but a real competitive advantage in the battle for qualified specialists.