Back to blog

Punchero Blog

The Fine Line: Balancing Reduced Working Hours with Overtime Compliance

The recent constitutional reform regarding the reduction of the standard working day requires companies to navigate new compliance landscapes. While the legislation allows for increased limits on specific overtime types, labour law experts caution against treating additional hours as a permanent solution to offset the compressed work week. Viewing overtime as routine compensation for reduced standard hours runs counter to the reform’s core objective: ensuring employees achieve greater rest and work-life balance.

Relying on sustained overtime, even within the newly established legal boundaries, introduces significant psychosocial risks and potential economic consequences. Treating extraordinary hours as ordinary practice can skew payroll structures and increase social security contributions, ultimately undermining the desired benefits of the reformed working environment. Companies must ensure that any extra hours worked are genuinely exceptional and do not become standard operating procedure.

For employers, the focus must shift from compensating for reduced time through extra shifts to proactive work organization. Successfully transitioning requires companies to review internal processes, identify inefficiencies, and leverage technology or targeted training to boost productivity. This holistic approach ensures compliance while truly fulfilling the reform's goal of quality rest and sustainable workloads for everyone.

If you want to reliably track working hours—whether in the office, working from home, or managing a small team—Punchero offers a simple, GDPR-compliant time-tracking solution from Germany. No tracking cookies, no ads, and free to try. Punchero stands for modern, privacy-friendly time tracking: automated, straightforward, transparent, and ready for immediate use in your daily routine. Give it a try or get in touch if you have questions.