The digitization of the world of work entails new working models, but since the European Court of Justice ruling on recording working time, German employers have been faced with a decisive question: Is trust-based working time still possible in a legally secure manner? The answer is complex, because while independent work continues to be appreciated, seamless documentation requirements have become a reality.
In this article, you will learn how to make trust-based working hours legally secure, what risks exist and how modern time recording systems help to combine independence and compliance. Because one thing is certain: Working time recording is not the end of work autonomy, but the beginning of a new, transparent work culture.
What is trust-based working time? Definition and legal basis
Trust-based working time is a working time model in which employees can organise their working hours independently and flexibly without meticulously monitoring them. The model is based on trust between employer and employee: It is the performance that counts, not the exact time spent in attendance.
The legal reality: ECJ changes everything
Since ECJ ruling from 2019 and the BAG time clock verdict from 2022 It is clear: Working hours must be recorded systematically — even when working on trust.
The Federal Labour Court stated unequivocally that the legal bases are clear:
- Section 3 Paragraph 2 No. 1 ArbSchG: Committed to documentation for occupational safety
- Section 16 (2) ArbZG: Requires recording of working hours over 8 hours a day
- ECJ decision C-55/18: Makes the systematic recording of all working hours a legal necessity
⚠️ Important ⚠️
Trusted working time without time recording is no longer permitted since the BAG ruling. Employers must provide a system that enables the objective, reliable and accessible recording of working time.
Modern trust-based working hours: Independence meets documentation
The good news: Trust work isn't dead, it just needs to be rethought. The model can still be successfully implemented — but with transparent documentation of working time worked.
The modern working model is characterized by the following features:
- Variable working hours: Employees determine the start and end themselves
- Focus on results: Performance counts more than attendance
- Personal responsibility: Independent organization of time within agreed framework
- Transparent recording: Digital documentation for legal certainty
Trusted working hours and overtime: Legally compliant handling in detail
The combination of Trusted working hours and overtime is one of the most critical aspects of modern employment law. Without proper documentation, legal risks for employers and health problems for employees quickly arise.
The overtime dilemma in trust-based working hours
Traditional trust-based working hours often led to a dangerous paradox: employees worked more without this being documented. The consequences were serious:
- Hidden extra work: Up to 15-20% of unpaid overtime went undetected
- Legal uncertainty: Lack of evidence in the event of labor disputes
- Health risks: No control of statutory maximum working hours
- Compliance violations: Violation of the Working Hours Act cannot be proven without documentation
🔥 Important 🔥
Since the BAG ruling, overtime in trust-based working hours is only legally secure if it is systematically recorded. The “trust gap” due to overtime has been closed.
Legal requirements for overtime during trust-based work
The new legal situation places clear requirements for dealing with overtime:
Practical solutions for overtime management
Modern companies solve the problem of overtime in trust-based working hours through structured approaches:
1. Make transparent agreements:
- Clear rules on overtime pay in employment contracts
- Definition of core working hours and flexible buffer zones
- Agreements on overtime reduction or payment
2. Establish preventive measures:
- Automatic notifications when peak working hours are approaching
- Regular team discussions about workload
- Workload monitoring by executives
3. Use technical assistance:
- Time tracking tools with overtime tracking
- Mobile apps for flexible working time documentation
- Automated reports for managers and HR
Avoiding overtime traps: The most common stumbling blocks
Companies should absolutely avoid these typical problems during trust-based working hours:
⚠️ Important notice ⚠️
Stumbling block “lump sum payment”: Overtime cannot be compensated on a lump sum basis if it is not recorded. Without documentation, a legally secure lump sum is impossible.
- Unclear delimitation: What counts as working time and what counts as private use of company equipment?
- Missing permits: Overtime without prior consultation with supervisors
- Poor documentation: Incomplete or retrospectively created time records
- Warning signs ignored: Regular overruns without intervention measures
Advantages and disadvantages of trust-based working hours
Benefits of trust-based working hours
Trust-based working time offers significant benefits to both employers and employees when implemented correctly.
For employees, the model means:
- Better work-life balance: Customizable working hours enable individual lifestyles
- Higher motivation: Personal responsibility demonstrably increases job satisfaction
- Less stress: Avoiding rigid time corsets and time clocks
- Optimum productivity: Work during periods of maximum performance
There are the following benefits for employers:
- Higher attractiveness: Modern work models attract talent and strengthen the employer brand
- Lower fluctuation: Happy employees stay with the company longer
- Cost savings: Less overhead thanks to a functioning culture of trust
- Encourage innovation: Personal responsibility strengthens creative thinking and problem-solving skills
Disadvantages of trust-based working hours
Despite the benefits, trust-based working hours also entail specific challenges that should not be underestimated.
Risks for workers:
Self-exploitation is a real risk when unpaid extra work is done without transparent recording. Boundaries between work and leisure are blurring, which can lead to permanent accessibility and burnout. Isolation from colleagues can arise when everyone chooses their own working hours and joint appointments are difficult to coordinate.
Challenges for employers:
There is legal uncertainty in Violations of the Working Hours Act without proper documentation. Loss of control can occur when performance and working time become difficult to measure. Unequal stress results from the risk of overworking particularly committed employees while others may take on less responsibility.
Risks and challenges
Self-exploitation appears as a risk of unpaid extra work without transparent recording. Boundaries between work and leisure time are blurring, which leads to difficulties in making the necessary distinction. Legal uncertainty is caused by violations of the Working Hours Act due to a lack of documentation. Uneven workload means the risk of overloading particularly committed employees.
💡 Practical tip 💡
Implement transparent, project-based time recording, such as ZEP. This gives you all the benefits of trust-based working hours without taking legal risks.
Legally secure implementation: The path to compliance-compliant trust-based working hours
Step-by-step implementation guide
Successful implementation of legally secure trust-based working hours requires a systematic approach:
- Create a legal basis: Create a works agreement on trust-based working hours and adjust employment contracts
- Involve works council: Observe early communication and participation rights
- Select time recording system: Implement a digital solution with a user-friendly interface
- Define clear rules: Set core working hours, maximum working hours and overtime regulations
- Conduct training: Inform managers and employees about new processes
- Establish control systems: Regular review and early detection of problems
The role of the works council and participation
The works council has comprehensive rights of participation in the introduction of trust-based working hours in accordance with Section 87 (1) No. 2 and 3 BetrVG. Successful implementation requires transparent communication about goals and implementation, joint development of works agreements, protection of workers' interests from self-exploitation and regular evaluation of the effects.
Alternative working models: independence without legal uncertainty
Hybrid models: The best of both worlds
Instead of traditional trust-based working hours, companies can establish hybrid solutions that optimally combine independence and legal security.
Flexitime with extended bandwidths works with core working hours of 10:00-15:00, flexitime frame from 6:00-20:00 and digital time recording with self-management.
Trusted working time with transparent recording means complete time recording via apps or web interfaces, independent administration by employees and automatic compliance monitoring.
🔥 Important 🔥
Modern time recording tools such as ZEP enable maximum independence while maintaining legal certainty. Employees record their time independently, and the system automatically monitors compliance with legal limits.
Modern approaches to recording working time
Modern time recording systems offer various functionalities:
- Mobile time recording: Smartphone and tablet apps with GPS-based recording for sales representatives
- Project-based recording: Allocation of working time to projects and customers for precise calculations
- Automated compliance: Monitoring peak working hours with automatic break reminders
- Offline functionality: Uninterrupted work even without an Internet connection
- Transparent evaluations: Clear reports and automatic overtime recognition
ZEP: Your solution for modern trust-based working hours
For over 20 years, ZEP has combined independence with legal certainty and is the ideal solution for companies that want to implement trust-based working hours in a legally secure manner.
Why ZEP is the perfect solution
ZEP offers adaptable time recording through mobile apps for iOS and Android, web-based recording from any device and offline mode for uninterrupted use.
Legal security guaranteed through automatic compliance monitoring, GDPR-compliant data processing and hosting in German data centers.
Easy to use with an intuitive user interface, quick time recording in just a few clicks and individual adjustment to work processes.
Transparent evaluations include clear time reports, project-based cost allocation and automatic overtime recognition.
💡 ZEP tip for trust-based work 💡
With ZEP, your employees can record their working time independently and on their own responsibility. The system automatically monitors compliance with the Working Hours Act and protects you from legal risks — without restricting work autonomy.
Integrate with your existing systems
ZEP can be seamlessly integrated into your existing IT landscape: DATEV interface for payroll accounting, Microsoft 365 integration, API connections for individual systems and import/export functions for data migrations.
The future of working time: Trends and developments
Legal developments
Case law is constantly evolving. Current trends show:
- Strengthening controls: Occupational safety authorities are increasingly monitoring compliance with laws
- Higher fines: Up to €30,000 can be imposed in the event of violations
- Digital standards: Requirements for digital time recording systems are constantly increasing
- EU-wide harmonization: Further approximation of working time laws
Technological innovations
AI-based time recording enables automatic recognition of work patterns, intelligent suggestions for optimizations and predictive analytics for resource planning.
Biometric processes offer fingerprint and facial recognition, maximum security against Working time fraud and privacy-compliant implementation.
Conclusion: Trust-based working time rethought
Trusted working time is not the relic of a bygone era, but can be successfully lived even after the ECJ ruling with the right tools and processes. The key lies in the intelligent combination of independence and transparency.
The most important findings: Documentation requirements have made time recording mandatory for all work models since 2022. Independence remains — modern systems continue to enable independent work. Legal certainty through transparent recording protects employers and employees alike. Technology as an enabler — digital tools make compliance easy and efficient.
With the right strategy and the right tools, trust-based working time turns from legal risk to competitive advantage. Start a new era of working time today — independently, transparently and legally compliant.
Recommended action: Review your current work models, implement modern time recording and redesign trust-based working hours. Your employees will appreciate independence, while you are legally on the safe side.
FAQs
Is trust-based working time still allowed since the ECJ ruling?
Yes, trust-based working hours are still possible, but only with systematic time recording. The ruling does not prohibit flexible working hours, but requires transparent documentation of all hours worked in order to comply with employee protection.
What are the penalties if time recording is not recorded?
With Violations of the Working Hours Act Fines of up to €30,000 can be imposed. In addition, companies risk employment law consequences and liability claims in the event of accidents at work without proven breaks and rest periods.
How can I implement trust-based working hours in a legally secure manner?
For legally secure implementation, you need: a clear works agreement, a digital time recording system, regular monitoring of working hours and training for managers and employees. Tools such as ZEP help you with automatic compliance monitoring.
Do managers also have to record their working hours?
Basically yes. The BAG ruling applies to all employees, regardless of their position. Only real management employees within the meaning of Section 5 (3) BetrVG can be excluded. In case of doubt, time recording should also be implemented for managers.
What are the advantages of modern time recording compared to time clocks?
Modern time recording systems offer apps, project-based recording, automatic evaluations, GDPR compliance and seamless integration into existing systems. They enable maximum independence with complete legal certainty — without the obligation to be present at work.
