How do German companies record working hours today?

According to Bitkom, 74% of companies use some form of working time tracking, but the methods vary widely: from PC systems and apps through to paper lists and Excel spreadsheets

Are Excel or paper still allowed for time tracking?

In principle yes – but they are error-prone, not tamper-proof and risky when it comes to audits or legal requirements.

Will working time tracking be spelled out in more detail in 2026?

The coalition agreement announces a rule on electronic working time tracking. Many companies expect a clearer legal requirement.

Why do some employees reject time tracking?

Because many systems are still too inflexible or create the impression of being monitored. Modern tools have to be user-friendly and transparent without building up pressure.

What benefits does a time tracking app offer?

Apps allow mobile recording, automatic rule checks, assignment to projects, less rework and audit-proof documentation.

Study: How German Firms Track Working Hours in 2026

Working time tracking in 2026: why the topic is so relevant right now

Since the 2022 court ruling on working time tracking, companies in Germany have had to pay closer attention to documenting working hours correctly and securely. A recent Bitkom study now shows this clearly: three quarters of companies (74%) already record their employees' working hours – a huge increase compared with 2022, when only 30% had such systems in use.

But although the obligation is clear, a look at practice shows: digital is not always digital. Many companies do meet the requirements – but with tools that hardly fit the modern world of work.

Digital time tracking compared: how companies record their hours today

The study makes clear just how broad the mix of methods currently is. Companies use:

31% electronic time tracking on the PC
18% time tracking via smartphone app
24% on-site systems (chip/transponder)
19% the classic time clock
16% Excel spreadsheets
13% handwritten timesheets.

Why Excel and paper time tracking are a problem

Many companies meet the obligation to record working hours, but not the requirements for legal compliance, transparency and efficiency.

Typical problems with analogue or half-digital methods:

No audit compliance → risky in an audit
Error-prone because of manual entry
High administrative effort for payroll accounting
No automatic check against legal requirements
No real-time overview for companies or teams

The bottom line: anyone still recording hours on a list, in Excel or with a time clock risks delays, errors and problems as the German Working Hours Act is spelled out further.

The challenges of time tracking: why many companies experience digital systems as a burden

Time tracking in knowledge work: often hard to put into practice

The Bitkom study shows clear reservations:

65% of companies say that time tracking limits the flexibility of trust-based working hours.
55% find precise working time tracking hard to put into practice – especially in knowledge work.
41% report that employees feel monitored.

This is where a central conflict arises: time tracking is an obligation – but it must not become an instrument of control.

Modern solutions therefore have to work intuitively, on mobile and as smoothly as possible in day-to-day work, without creating a feeling of constant surveillance.

The Working Hours Act & flexibility: what companies really want

The trend: away from a daily and towards a weekly maximum working time

The study shows very clearly which direction German companies want a reform to take:

82% call for a weekly instead of a daily maximum working time.
49% want more flexible rest periods – for a quick check of emails in the evening, say

The world of work has changed, and time tracking systems have to make flexible working models technically possible. Rather than forcing rigid rules to be followed to the letter, companies need digital solutions that do not block flexibility but reflect it.

Risks for companies: why outdated time tracking will no longer do in 2026

Legal risks are growing

With Excel or paper solutions in particular there is a risk:

that hours were not documented correctly,
that the requirements of the German Working Hours Act were not checked automatically,
that the documentation does not hold up when audits take place.

Lost productivity stays invisible

Without digital processes, what is missing is:

a real-time overview of working and project hours
transparency for teams
a basis for managing workload fairly
valid data for workforce planning or reporting

In short: many companies have time tracking – but not yet modern working time tracking.

What modern time tracking systems have to deliver

An up-to-date solution should today:

be usable via an app – especially for mobile teams or teams working from anywhere
work in a legally compliant and audit-proof way
allow automatic checks against legal requirements
connect project hours, documentation and working hours
be usable without training
create transparency without feeling like surveillance
prepare data directly for payroll accounting and the like

Tools such as clockin answer exactly this market need, because they work simply, intuitively and without any IT effort – a central advantage at a time when companies need flexible, practical solutions.

The bottom line: most companies record hours – but very few do it well

The current Bitkom study shows that Germany has put the obligation to record working hours into practice – at least among companies with more than 20 employees. But in many places the reality of work remains analogue. Paper lists, Excel spreadsheets and rigid systems meet neither the legal requirements nor the needs of modern teams.

At the same time, companies want more flexibility, simple processes and digital solutions that support rather than monitor.

The conclusion is clear: 2026 will be the year in which digital, mobile and intuitive time tracking solutions become the standard. They not only secure the legal position, they also create transparency, fairness and efficiency – for companies and employees alike.