Contents
What lies behind it legally
The Working Hours Act does not know the term. A working time account rests on a collective agreement, a works agreement or the employment contract. Without such a basis there is no account, only extra work that has to be paid.
Where a works council exists, the introduction is subject to codetermination: section 87(1) no. 2 BetrVG for the timing of working time and no. 3 for temporary extension or shortening.
Regardless of the account, the limits in section 3 ArbZG apply. An account shifts the pay, not the maximum working time.
Short-term and long-term accounts
Short-term accounts balance out within a few months, usually with a cap upwards and downwards. They serve everyday flexibility.
Long-term accounts accumulate credit over years, for a sabbatical or early retirement. As soon as the credit reaches more than 250 hours or a multiple of the monthly pay and the agreement provides for release from work, the rules on value credit under sections 7b et seq. SGB IV apply, including insolvency protection under section 7e SGB IV.
What happens on departure
A positive balance has to be paid out where it can no longer be run down. A negative balance may only be reclaimed where the negative hours rest on a decision by the employee and a corresponding agreement exists. Where work is missing because the business has none, the business bears the risk (section 615 BGB).
Example: a short-term account with a cap
- Agreed: 38 hours a week, cap plus 60 and minus 20 hours.
- January: 170 actual against 165 target, balance +5.
- February: 180 actual against 152 target, balance +33.
- March: 140 actual against 167 target, balance +6.
- The balance stays within the cap, so no settlement is forced.
Common mistake
The most common mistake: the account is kept but never emptied. After two years there is a balance of 180 hours that nobody can run down any more and that is expensive to pay out. A cap and a fixed settlement date belong in every agreement.
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