Trust-based working hours: flexibility or control and transparency through time recording?

In a working world that is constantly evolving, flexible working time models such as trust-based working time are becoming increasingly important. But what exactly is behind it? Why is trust-based working time so controversial? This article sheds light on the various facets of this model and explains the important aspects that both employees and employers should consider.

What does trust-based working time mean?

Trust-based working time is a working time model in which employees can organize their working time largely independently and flexibly. The focus is on the employer's trust in the employees' personal responsibility. The agreed working hours play a subordinate role as long as the agreed tasks are fulfilled.

This model is particularly suitable for activities that are not necessarily tied to fixed working hours. Employees have the freedom to determine the start and end of their daily working hours themselves, which gives them enormous flexibility. Trust-based working hours therefore do not mean that working hours are not recorded, but that they are often recorded by the employees themselves.

Advantages and disadvantages of trust-based working hours

Advantages

A key advantage of trust-based working hours is the high degree of flexibility they offer employees. They can adapt their working hours to their personal needs, e.g. to better fulfill family obligations. Motivation and satisfaction can also be increased through the personal responsibility gained.

Employers also benefit from such flexibility, as motivated and satisfied employees work more efficiently. In addition, there is no need for the administrative effort of strict working time recording.

Disadvantages

The disadvantages of trust-based working hours lie primarily in the potential overloading of employees. Without clear time limits, it is easier to work excessive overtime, which can cause long-term health problems. Another disadvantage is the risk of unequal distribution of work within the team.

Employers may also find it difficult to monitor compliance with legal regulations, such as the Working Hours Act. This could lead to legal problems, especially if the hours worked are not recorded correctly.

How does working time recording work with trust-based working time?

Although trust-based working time promises a high degree of flexibility, the recording of working time remains an important issue. As a rule, employees record their working hours independently when working on a trust-based basis. Modern electronic time recording systems can provide support here in order to accurately document the time worked.

Such systems enable precise recording of daily working hours and overtime. This data must be kept for at least two years in order to be able to prove, if necessary, that the statutory maximum working hours and rest periods have been observed. The introduction of such time recording can help to avoid potential conflicts between employers and employees.

Overtime with trust-based working hours: What do you need to consider?

Overtime regulation

Even with trust-based working hours, overtime is not uncommon. It is important that employers and employees make clear agreements on how overtime is to be handled. The hours worked must be documented in a comprehensible manner to ensure that the agreed working hours and the statutory maximum working hours are not exceeded.

Reduce overtime

Employees must ensure that excessive overtime does not become the norm and that appropriate compensation options such as compensatory time off or additional vacation hours are used. Employers should ensure that overwork is avoided and that all labor law provisions, such as compliance with the 8-hour working day, are observed.

The role of the Working Hours Act

The Working Hours Act plays a role both in Germany as well as in Austria play a decisive role in the introduction and implementation of trust-based working hours. In Germany, the Working Hours Act (ArbZG) stipulates that working hours on weekdays must not exceed eight hours as a rule and that rest periods of at least eleven hours must be observed. These requirements also apply to flexible working time models such as trust-based working time. The Working Hours Act (AZG) in Austria sets out the same guidelines. 

Compliance with legal regulations

In both countries, employers are obliged to ensure compliance with the applicable working time legislation. The obligation to keep records remains in place, even if working hours are made more flexible.

In Germany, trust-based working time requires a company agreement and a separate target agreement with the employee, whereby targets, time frames for trust-based work, special tasks, deadlines, etc. are agreed. Working time must be recorded as soon as a daily working time of eight hours is exceeded. These records must be kept for at least two years. The employer and employee are jointly responsible for the correct documentation of working time.

In Austria, the trust-based working time model is often combined with an all-in contract in which overtime is not compensated separately. Here, too, the recording of working hours is mandatory, except for executive employees. The responsibility for compliance with the obligation to record working hours lies with the employer. Trust-based working hours are therefore often used for senior employees who are exempt from this regulation.

The influence of the ECJ ruling on trust-based working hours

In April 2023, the European Court of Justice (ECJ) issued a ruling that has far-reaching consequences for the recording of working hours and therefore also for trust-based working time models. The ECJ ruling requires employers to keep precise records of working hours in order to better monitor compliance with statutory working time regulations. 

This ruling has increased the pressure on employers to introduce electronic time recording systems. This poses a particular challenge for companies practising trust-based working hours, as they have to recalibrate the balance between flexibility and legal compliance.

For which employees is trust-based working time suitable?

Trust-based working time is particularly suitable for employees who have a high degree of self-organization and personal responsibility. They must be able to plan and document their working hours independently. This applies in particular to activities that are project-based or creative and are not necessarily tied to fixed working hours.

Advantages for employees

Employees on trust-based working hours can act more flexibly and adapt their working hours to personal and family needs. This often leads to a better work-life balance and can increase motivation and satisfaction.

The employer's perspective: advantages and disadvantages

Advantages and disadvantages for employers

For employers, trust-based working hours offer both opportunities and risks. On the one hand, they can increase productivity and satisfaction by gaining flexibility and trust in their employees. On the other hand, there is the challenge of ensuring compliance with legal regulations and avoiding overwork.

Risk management

It is important that employers take appropriate measures to manage potential risks. These include clear agreements in the employment contract and the use of time recording systems that support compliance with legal regulations.

Works council and co-determination rights

The works council plays an important role in the introduction of trust-based working hours. The works council has a right of co-determination and must be involved in the process of introducing and designing the model. This helps to protect the interests of the employees and ensure compliance with the statutory provisions.

Company agreements

A company agreement can serve as a legal framework to regulate the details of trust-based working hours. This should contain clear regulations on the recording of working hours, overtime and compliance with legal requirements.

The future of trust-based working time: electronic time recording and new models

Electronic time recording

With the growing influence of technology and the requirements of the ECJ ruling, electronic time recording is becoming increasingly important. These systems enable precise and transparent documentation of working time, which benefits both employers and employees.

New working time models

The world of work will continue to evolve, and with it the working time models. Future models of trust-based working hours could be even more flexible and individualized in order to meet the different needs and requirements of companies and employees.

Summary of the most important points

• Trust-based working hoursA flexible working time model based on trust and personal responsibility.
• Advantages and disadvantagesHigh flexibility and motivation, but also risks such as overwork and legal challenges.
• Working time recordingEssential, even for trust-based working hours, in order to meet legal requirements.
• OvertimeClear regulations necessary to avoid overloading.
• Working Hours ActCompliance with legal regulations is mandatory for all parties involved. National laws must be observed!
• ECJ rulingIncreased pressure on accurate time recording.
• SuitabilityEspecially for self-organized and autonomous employees.
• EmployerOpportunities through flexibility, but also responsibility for legal compliance. 
• Works CouncilCo-determination rights are important during the introduction.
• The futureElectronic time recording and even more flexible models will gain in importance.

Trust-based working time remains an exciting topic that is still the subject of much discussion and development in the modern working world. Would you like to know more about Time recording and get individual advice on your HR management? Then visit our website and arrange a personal consultation. Consultation with Personalwolke!