GPS monitoring of employees: what is allowed?

Is GPS monitoring of employees allowed? 

In principle GPS monitoring is not banned outright – but it is subject to strict legal requirements. In other words: as an employer you may not carry out GPS monitoring without a sound reason and without the consent of the employees concerned.

A sound reason could be, for example: 

• Logistics and route planning: GPS is used to manage deliveries more efficiently.
• Vehicle protection: tracking can make sense in the event of theft or to reconstruct an accident.
• As proof for the customer: GPS can be used as evidence of work for the customer, for instance to show that staff were on site in commercial cleaning.

What does the GDPR say about GPS monitoring? 

The Datenschutz-Grundverordnung (DSGVO, the General Data Protection Regulation or GDPR) plays a central role here. Under the GDPR, GPS tracking counts as processing of personal data, which means:

• Transparency: employees must be informed about the nature, purpose and extent of the monitoring.
• Consent: in most cases written consent is required. 
• Proportionality:  GPS monitoring must not go beyond what is necessary.
• Erasing the data: location data may not be stored indefinitely.

How long may GPS data be stored? 

Under the GDPR, the storage of GPS data must be limited to the necessary minimum. There is no universally applicable time limit, but: 

• As short as possible: data should only be stored for as long as it is needed for the purpose of the processing. 
• Rule of thumb: many businesses delete GPS data after 7 to 30 days, unless longer storage is demonstrably necessary (for billing or legal evidence, say). 
• Company-level rules: a clear deletion period should be set out in the data protection policy or the works agreement. 

Indefinite storage without a sound reason is not permitted and can result in GDPR breaches. 

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Is GPS monitoring of company vehicles allowed? 

Monitoring company vehicles by GPS is allowed under certain conditions. Businesses may track company vehicles by GPS where:

• the company has a legitimate interest (protection against theft or better route planning, for example),
• the employees have been informed about the monitoring and have given their consent,
• there is no permanent, disproportionate monitoring.

GPS monitoring of company vehicles that may be used privately

If a company vehicle may also be used privately, things get more complicated. Monitoring during private journeys is extremely problematic from a data protection point of view. One possible solution is a system that automatically switches GPS tracking off during private journeys, or only switches it on during official working hours.

Is covert GPS monitoring allowed? 

To be quite clear: covert monitoring of employees is illegal in Germany. Employers who track their employees by GPS without their knowledge are committing an offence and risk substantial fines.

Before GPS monitoring is introduced, employees must give their voluntary written consent. A consent requirement also applies where there is a works council (Betriebsrat) – it too must agree before GPS tracking is introduced.

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Court rulings on GPS monitoring 

The courts have dealt with the topic several times. Two key rulings illustrate the legal limits:

Landesarbeitsgericht Hamm (Regional Labour Court, 2017) 

A company had monitored a field sales employee by GPS without his knowledge. The court held that this was a serious interference with his personality rights and therefore unlawful. Permanent tracking, it found, breaches the right to informational self-determination, since it amounts to covert total surveillance.

Verwaltungsgericht Wiesbaden (Administrative Court, 2022)

A company had installed GPS tracking in 55 company vehicles and stored the location data indefinitely. The Verwaltungsgericht Wiesbaden held that storing the GPS data indefinitely breaches the GDPR. The judges made clear that long-term storage of this kind is only permissible where the employees concerned have given express consent or where there is a statutory basis for it.

These rulings show that GPS tracking is only allowed under clear and proportionate conditions – and that employers must always respect their employees' rights.

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GPS tracking with clockin - a GDPR-compliant solution

If you are looking for a legally compliant and transparent way to record working hours with GPS support, clockin offers a smart solution.

With clockin you can use GPS tracking in a targeted and lawful way: 

• No continuous monitoring: GPS data is only recorded when clocking in and out, or at 15-minute intervals, not continuously. 
• Employees stay in control: GPS tracking has to be actively enabled in the settings. 
• GDPR-compliant: location data is encrypted and used only for time tracking. 
• Efficient scheduling: employers can see where teams are during jobs - without intruding on their privacy. 

You can find more detail on clockin's GPS feature here: Project time tracking with clockin.

Conclusion: what should you bear in mind? 

• Always inform staff and obtain consent: nothing happens without the employees' knowledge. 
• Set out clear rules: ideally in a works agreement or in the employment contract. 
• Mind data protection: the GDPR sets clear rules here. 
• Do not overdo it: GPS tracking must not turn into total surveillance. 

If you stick to these requirements, you can use GPS tracking sensibly in your business without risking legal problems. And with clockin you have a straightforward solution to hand that makes legally compliant time tracking easier.

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