Time recording for CEOs: what is it currently worth?

It depends on whether a CEO is required to record time if you are an employee within the meaning of the Working Time Act (ArbZG) applies – particularly if he is not involved in the company and is not bound by instructions.

External CEO (not involved in society) are generally subject to this Working hours law AND they must record their working hours. This also includes legally required rest periods and maximum working hours. At least since the landmark ruling of the Federal Labor Court in 2022 it has been clear: Employers are obliged to provide a working time system. This also includes management positions if they fall under the ArbZG.

Partner CEO On the other hand, those who are involved in the company and have a significant voice in the decision-making process apply not as an employee – AND they are therefore not subject to the obligation to record time according to the Working Time Act.

Suggestion: Check carefully the contractual position and the degree of commitment in the instructions, this is fundamental.

Who is exempt from time recording?

Die Exception to the time recording requirement According to the law, it concerns:

  • senior executives, who hold significant corporate decision-making powers
  • CEO with participationwhich are not subject to the ArbZG
  • Self-employed and freelance workers

Important: Senior employees are also not automatically exempt. This is what is crucial concrete design of the functionfor example whether they have sovereignty over staff or can decide independently on their own working hours.

Legal gray area: Many companies assume that managers don’t have to record working time, but this is often wrong. Careful review is required to avoid legal risks.

How many hours does a CEO usually work?

Reality show: CEOs work much more than 40 hours a week. 50 to 70 hours are not uncommon, and weekend work is often part of the job.

But: Not all working hours are the same. Because not all hours worked are automatically documented. Without registration it is not clear whether the legal limits have been respected: a risk in the event of accidents at work or legal disputes.

‍Because attendance tracking also makes sense for CEOs

Although in many cases CEOs are not required by law to record working time, structured documentation of working time is still useful for several reasons:

1. Legal certainty regarding working hours and rest periods

Especially in times of increasing regulation, it is important to keep track of hours worked and rest periods taken. By documenting your timetables transparently, you can demonstrate in case of doubt that legal requirements have been complied with, for example in the case of accidents at work, labor law disputes or company audits.

2. Evidence of actual workload

CEOs often work well beyond what is contractually agreed. Comprehensive time recording helps to make the actual workload visible – for yourself, but also for shareholders, supervisory boards or HR managers. This creates transparency and can provide arguments for adjusting the distribution of tasks or remuneration.

Protection for overtime, illness and liability issues

Managerial employees who have to work overtime should accurately document their working hours: this can be crucial in the event of a dispute. In the event of an illness or legal dispute, this evidence can be decisive, for example when it comes to determining whether overwork or lack of recovery time contributed to the illness. Documented working hours can also be a relief in the context of CEO responsibility.

‍Extraordinary: what is allowed?

Extraordinary of managers they are often covered by contract – but the same applies here: documentation protects both parties. Especially in the case of employee CEOs, failure to register can subsequently lead to employment law disputes.

‍Whether required by law or not, time tracking is an important management tool. With clockin CEOs create transparency, security and efficiency in their daily lives.

 

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