With the coalition agreement presented by the new German federal government in May 2025, a significant change to German working time law is emerging. The main focus is on the daily maximum working hours – a key issue for companies with operations in Germany.

Current legal situation: rigid daily working time limit

Under the current German Working Time Act (ArbZG), employees in Germany may work no more than eight hours per day. An extension to up to ten hours is only permitted if the average daily working time of eight hours is maintained over six calendar months or 24 weeks. This regulation is heavily calendar-day oriented and does not take weekly working hours or the flexibility of operational processes into account.

For international companies operating across multiple time zones or with global project teams, the existing system is often difficult to apply in practice.

New government’s plan: more flexibility, less rigid daily limits

In the 2025 coalition agreement, the new government has agreed to make daily working hours more flexible. Specifically, the rigid daily cap is to be supplemented by a flexible weekly working time regulation – while still adhering to the EU Working Time Directive (2003/88/EC), which mandates an average maximum of 48 working hours per week.

The reform aims to enable greater flexibility without compromising employee health and safety. Notwithstanding the expanded leeway, all legal protections regarding rest periods and breaks must continue to be strictly observed.

Impact on International Companies

The proposed reform could offer significant advantages for international corporations with subsidiaries in Germany:

• Greater planning reliability and flexibility, especially for project-based work, seasonal fluctuations, or internationally coordinated workflows.
• Reduced risk of violations under the previously rigid working time rules, such as when holding meetings with teams in different time zones or during remote work.

Outlook

In the coalition agreement, no specific timeline was set for the submission of a draft bill. However, it can be expected that the German government will take further concrete measures over the course of 2025 – likely by mid-year. We will keep you informed of any further developments.

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Disclaimer:

This article should not be construed as legal, financial, or business advice. The information does not represent the views of smarti. Neither smarti nor its guest contributors assume liability for the accuracy, comprehensiveness, or timeliness of the information provided. We strongly recommend seeking professional advice before making business decisions.