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.
As of:September 2026
What the levels are good for
A simple time account shows only a number. It only stands out once the balance is too high, and running it down is then hard. The levels force earlier action and spread the responsibility: green lies with the individual, amber with the manager, red with the business.
Legally the model rests on a works agreement or a collective agreement. The Working Hours Act does not know it but requires in any case that maximum working time be observed on average.
MetronHR works these figures out itself: time accounts, premiums, overtime and the limits of the German Working Hours Act, with every booking.
What belongs in the arrangement
The limits per level upwards and downwards, who is informed at amber and red, what measures are then to be taken, and what happens if the balance keeps rising despite the measures.
A cap also makes sense: hours above a certain figure do not expire but are paid out or transferred into a long-term account. Expiry without replacement would be a reduction of the pay entitlement and is as a rule ineffective.
- Green: balance between minus 10 and plus 30 hours, no measure.
- Amber: up to plus 60 hours, the manager agrees a plan to run it down.
- Red: above that, no more extra work, run down within eight weeks.
Example: a course over one quarter
- January: balance +18 hours, green.
- February: balance +41 hours, amber. A plan to run it down by the end of April is agreed.
- March: balance +38 hours, still amber, the plan is working.
- April: balance +22 hours, green again.
Common mistake
The levels get agreed but nobody is notified. A traffic-light account without automatic notification is an ordinary time account in three colours.
How MetronHR models it
The thresholds for amber and red are stored once for the business, separately for positive and negative balances, and then apply to everyone alike. What is measured is the accumulated balance, exactly the figure shown in the hours account.
When an account reaches a level, a notification goes to the person concerned; managers and HR get one figure per level rather than one notification per account. What is reported is the change, not the state: anyone already on amber does not get the warning again every day. Nothing is booked or capped; the traffic light reports, it does not cut off.
Further reading
- Section 3 ArbZG
- 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
Knowing the terms is one thing. Settling them cleanly is another.
MetronHR keeps time accounts, calculates premiums and checks the limits of the German Working Hours Act automatically. Try it free for 14 days.
No credit card, cancel any time
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.
Balancing period
The balancing period is the span over which the average of eight hours of daily working time has to be observed. It is six calendar months or 24 weeks.
Time off in lieu
Compensatory time off means that extra work performed is offset by paid release from work instead of payment. It requires an agreement; it does not follow from the law.
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.