Contents
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.
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.
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: 2 September 2026