Works agreement
A works agreement is a written agreement between the employer and the works council. It applies directly and mandatorily to all employees of the business.
As of:September 2026
What "directly and mandatorily" means
Directly: the rule takes effect on every employment relationship without having to be incorporated into the employment contract. Mandatorily: it cannot be departed from by individual contract to the employees' detriment.
To their advantage it can be. Under the favourability principle, an individually agreed rule more favourable to the person prevails. A works agreement is therefore a floor, not a ceiling.
What belongs in an agreement on time recording
Which data is recorded and which expressly is not. Who may access what, by role and not by person. How long the data is kept and when it is deleted. How corrections are requested, approved and logged. Whether and how evaluations are made, in particular whether evaluations are possible in personalised form or only as a group figure.
Plus the rules on the time account: caps, the balancing period, what happens when the limit is reached and what applies on departure.
- The purpose and the types of data recorded, with an express exclusion of biometric features and continuous location tracking
- Access rights per role, with a list of the evaluations that are permitted
- Retention and deletion, aligned with section 147 AO and section 17 MiLoG
- A procedure for corrections, with logging
- Involvement of the works council in changes to the system
MetronHR works these figures out itself: time accounts, premiums, overtime and the limits of the German Working Hours Act, with every booking.
Continuing effect
After expiry or termination, works agreements in matters of enforceable codetermination continue to apply until they are replaced by another arrangement (section 77(6) BetrVG). A terminated agreement on time recording therefore does not disappear, it stays in force.
That is often overlooked and matters in practice: anyone wanting to get rid of an outdated agreement has to negotiate a new one, not merely terminate the old one.
Common mistake
The agreement governs the introduction of the system but not the evaluations. That is exactly where the dispute arises later, and without a rule every new evaluation is subject to codetermination afresh.
Further reading
- Section 77(4) sentence 1 BetrVG
- „Works agreements apply directly and mandatorily.“
- Section 77(6) BetrVG, section 87(1) BetrVG
- Article 88 GDPR, section 26 BDSG
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
Codetermination
Codetermination means a measure requires the works council's consent. For working time it is governed by section 87(1) BetrVG and is enforceable.
Record-keeping duty
The record-keeping duty is the duty to record working times. It follows not from one provision but from several that differ in scope, deadline and addressee.
Processing on behalf
Processing on behalf exists where a service provider processes personal data on behalf of and on the instructions of a controller. It requires a contract under Article 28(3) GDPR.