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Flexibility and risks for German companies

Breaking News: Germany’s 2025 Working Hours Act Changes Impact Hybrid Work and Legal Compliance

In an significant move, the German Bundestag has passed new regulations on working hours flexibilization set to react to the increased need for hybrid work and new working models. These reforms, which complement the Working Hours Act (ArbZG), bring opportunities for companies and employees alike, but also considerable legal risks for employers. Here’s a deep dive into the changes, the challenges, and practical solutions to navigate this new landscape.

Changes in the Legal Framework

The new working time regulations, effective June 2025, expand flexibility in working hours

  • Extended daily working hours: The maximum daily limit can now reach up to 12 hours with specific conditions.
  • Flexible rest periods: Rest periods can be shortened to 9 hours under certain operational justifications.
  • Greater involvement of the works council: The Works Constitution Act (BetrVG) requires employers to involve the works council more comprehensively in flexible model implementation.
  • Health protection: Employers must introduce health programs to avoid violations.

These reforms, inspired by the need for hybrid work, aim to balance flexibility and employee health. Violations can result in fines up to 30,000 euros or labor lawsuits.

Challenges and Practical Solutions

While the new regulations offer flexibility, they bring significant challenges:

  • Risk of revision: Extended hours and shortened rest periods can lead to health issues if breaks are not consistently observed.
  • Time recording issues: Accurate documentation of working hours is essential, but many companies lack the necessary systems.
  • Impact on working atmosphere: Flexible models can be perceived as a burden if employee health is not adequately protected.

Practical solutions include negotiating working time models with the works council, introducing health programs, using digital time recording systems, employee training, international coordination, crisis management, and transparent communication to build trust.

Current Developments and Union Reactions

Initial pilot projects and complaints have surfaced issues with inadequate break regulation compliance. Union bodies are rigorously advocating for stricter health protection measures. The Federal Ministry of Labor and Social Affairs (BMAS) is promoting projects combining flexibility with health protection.

Sectoral and International Implications

The impact varies across industries. In the service sector, adapting to new flexibility models requires robust documentation systems, while IT companies face slower implementation due to international regulations. In global teams, companies need to blend EU and non-EU regulations seamlessly.

Navigating the New Regulations

The key to successfully implementing these new regulations lies in striking a balance between flexibility and ensuring legal compliance. German companies are advised to adopt comprehensive strategies for legally safe implementation, keeping employee wellbeing and company interests in mind.

Stay ahead of the curve. Consult the experts at Archyde.com to develop tailor-made solutions for working hours compliance and protect your company!

Contact us today to ensure your business thrives under the new regulations. Subscribe to our updates to stay informed about the latest labor law developments and ensure continuous compliance.

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