Cap limit
A cap is the agreed maximum or minimum value of a working time account. When it is reached, a defined consequence applies, for instance payment, transfer, or a ban on further extra work.
As of:September 2026
What it is good for
A time account without an upper limit grows as long as nobody looks. After two years there is a balance that can neither be taken as time off nor paid without it hurting. The cap forces a decision before it gets that far.
Downwards it protects the employees: a negative of 40 hours can hardly be caught up alongside ongoing work, and on departure it becomes a claim.
What may happen when capping
Permissible are payment of the hours above the limit, their transfer into a long-term account, and a stop on further extra work until the balance is below it again.
What is not permissible is their falling away without replacement. That would be a reduction of an entitlement to pay that has already arisen and, as a clause, is regularly ineffective under section 307(1) BGB. "Capping" means transferring, not deleting.
MetronHR works these figures out itself: time accounts, premiums, overtime and the limits of the German Working Hours Act, with every booking.
Usual figures
In short-term accounts the limits are often between plus 40 and plus 80 hours and between minus 10 and minus 20. There are no fixed requirements; what matters is that settling the balance stays realistic within the balancing period.
A limit that is never reached has no effect. One that is reached constantly shows that staffing is too thin, and is therefore a useful indicator.
Example: capping at plus 60
- Agreed: cap at plus 60, payment of the excess at the end of the quarter.
- Balance on 30 June: 74 hours.
- 14 hours are paid out, 60 remain in the account.
- At an hourly rate of 22 euros that is 308 euros gross.
Common mistake
The limit is in the works agreement, but nobody is notified when it is reached. A cap without automatic notification is a number on paper.
Further reading
- Section 307(1) BGB
- Section 87(1) nos. 2 and 3 BetrVG
This is not legal advice; for a specific case at your workplace you are better off asking someone qualified to give it.
Published by: AMNAU GmbH
Editorial responsibility: Ugur Aydogan, Product development.
Last reviewed: September 2026
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Related terms
Working time account
A working time account records how many hours somebody is above or below the agreed working time. The balance is settled over a defined period, through time off or through payment.
Traffic light account
A traffic-light account is a working time account with graduated limits. As long as the balance is in the green range nothing happens; in the amber range duties to run it down apply, and in the red range no further extra work may arise.
Time credit
Time credit is the positive balance of a working time account: hours worked above the target time that have not yet been offset by time off or payment.
Value credit
Value credit is accumulated remuneration set aside for later paid release from work, for instance for a sabbatical, care leave or early retirement.