Over a billion hours of overtime were worked in Germany in 2024 – more than half of which were unpaid. For many employees, overtime is part of everyday life, but the legal framework is complex and often misunderstood. In many cases, an employment lawyer can help clarify the situation and enforce your rights. This article explains in clear terms what your rights and obligations are, when overtime is permissible, and what you need to understand about employment law in order to act in a legally compliant manner.
What is the difference between overtime and extra work?
In common parlance, both terms are often used synonymously, but legally there is an important distinction. Overtime occurs when you exceed the regular working hours agreed in your employment contract. This individual limit can be 40 hours per week for full-time employees, for example, and correspondingly less for part-time employees.
Overtime, in the sense of labor law, refers to working hours that exceed the maximum working hours stipulated by law or collective agreements. The Working Hours Act stipulates a working day of eight hours, which may be temporarily extended to ten hours, provided that this is compensated for within six months. If this legal limit is exceeded, it is referred to as overtime.
In practice, this means that a part-time employee working 20 hours per week is already working overtime if they work 25 hours—even if they are still well below the legal maximum working hours.
When are employers allowed to order overtime?
This question is on the minds of many employees: Can your boss simply require you to work overtime? The clear answer is no, not without a legal basis.
Overtime may only be ordered if this is expressly regulated in:
- Your employment contract with a specific overtime clause
- A collective bargaining agreement applicable to your industry
- A works agreement between the employer and the works council
According to the case law of the Federal Labor Court, blanket statements such as "Required overtime is compensated by the salary" are invalid because they violate the transparency requirement. Valid clauses must specify the extent of overtime work in concrete terms.
Exception: Emergencies and extraordinary situations
Even without a contractual agreement, employers can require overtime in genuine emergency situations—such as a burst water pipe, sudden mass absence of colleagues, or other unforeseeable events that would jeopardize operations. However, the legal maximum working time of ten hours per day must not be exceeded in these cases either.
How much overtime is legally permissible?
German labor law does not specify an explicit upper limit for the number of overtime hours. However, the Working Hours Act sets clear limits:
- Maximum of 8 hours per day as standard working hours
- Maximum 10 hours per day with temporary extension
- An average of 48 hours per week over a period of six months or 24 weeks
In practice, this means that with a 40-hour week, up to eight hours of overtime per week are theoretically possible under the law. However, it is important to compensate for this—any daily working time exceeding eight hours must be compensated for within six months so that an average of eight hours per day is not exceeded.
Special protective provisions apply to:
- Pregnant women and nursing mothers: Maximum 8.5 hours per day or 90 hours per two-week period
- Young people under the age of 18: Generally a maximum of 8 hours per day and 40 hours per week
- Severely disabled persons: Can demand exemption from overtime exceeding eight hours per working day
Do overtime hours have to be compensated?
The issue of remuneration is one of the most common points of contention. As a general rule, overtime must be paid if it was ordered or approved by the employer. It is sufficient if the employer was aware of the overtime and did not prevent it.
The amount of remuneration is based on:
- The contractual agreements (employment contract or collective bargaining agreement)
- In the absence of regulations: the normal hourly rate
- Optional: additional overtime pay, if agreed
Important to know: Appropriate remuneration is also deemed to have been paid if only the normal hourly rate is paid without any surcharge. Overtime surcharges are not a legal requirement, but must be expressly agreed upon. Since January 2025, the statutory minimum wage has been €12.82 per hour—this also applies to overtime, whereby surcharges must be paid in addition.
Exceptions for high earners:
In the case of employees who earn more than the contribution assessment ceiling (2026: €101,400 per year), it can be assumed under certain circumstances that the high salary already compensates for any overtime worked.
New BAG ruling: What applies to part-time employees?
The Federal Labor Court made a landmark decision on December 5, 2024: part-time employees are entitled to the same overtime pay as full-time employees from the very first hour of overtime worked. This ruling was confirmed on November 26, 2025, and represents a significant strengthening of the rights of part-time workers.
What does this mean in concrete terms?
Previously, many collective agreements stipulated that part-time employees only received overtime pay if they exceeded the regular working hours of full-time employees. The Federal Labor Court has classified this practice as unlawful discrimination. If, for example, a collective agreement provides for a 30 percent overtime bonus from the first hour of overtime for full-time employees, this must now also apply to part-time employees – as soon as they exceed their individually agreed working hours.
Background to the decision:
The court saw this as not only a violation of the prohibition of discrimination under the Part-Time and Fixed-Term Employment Act, but also as indirect gender discrimination, since it is predominantly women who work part-time. The decision is based on rulings by the European Court of Justice in July 2024.
Affected employees should act quickly: claims must be asserted in writing to the employer within two months of becoming aware of them, with a general limitation period of three years.
How can overtime be compensated?
There are three permissible models for compensating overtime worked:
1. Financial compensation
The additional hours are paid at the regular or an increased hourly rate. Advantage: Immediate remuneration. Disadvantage: Higher tax burden due to increased monthly income.
2. Time off in lieu
Overtime is compensated with additional days or hours off. Advantage: Virtually "tax-free," as no additional taxable income is generated. The decision between payment and time off depends on your personal situation.
3. Working time account
Overtime hours worked are credited to a time account and can be taken off later on a flexible basis. In 2024, 71 percent of employees who worked overtime used such a working time account.
Checklist: Your rights regarding overtime compensation
- You are generally entitled to compensation in the form of money or time off.
- Lump-sum compensation clauses without a specific scope are invalid
- Upon termination, accrued overtime must be compensated.
- Overtime expires on December 31 of the third year.
- Employment contracts or collective agreements may stipulate shorter limitation periods (at least three months).
What documentation requirements exist?
Since the ECJ ruling of May 14, 2019, and its confirmation by the Federal Labor Court in 2022, employers are required to implement a system for systematically recording daily working hours. recording daily working hours . This includes:
- Documentation of start and end of work
- Recording of break times
- Recording of all overtime hours
This obligation applies to all employees and serves both to protect health and to provide legally secure documentation in the event of subsequent disputes. Violations of the Working Hours Act can be punished with fines of up to €30,000. Repeated, deliberate endangerment of employees' health through systematic exceeding of maximum working hours can even result in prison sentences of up to one year.
What to do in the event of unjustified or unpaid overtime?
If your employer systematically demands unpaid overtime or disregards contractual agreements, you should consider taking the following steps:
Getting started:
- Documentation: Keep accurate records of your actual working hours.
- Seek dialogue: First, address the issue internally.
- Involve the works council: If available, the works council can mediate.
- Written assertion: Assert your claims in writing within the deadlines.
Legal support:
In complex cases or if your employer refuses to budge, it is essential to seek advice from a labor lawyer. They can assess whether your overtime clause is valid, what entitlements you have, and how best to enforce them.
Conclusion: Clear rules for fair working conditions
Overtime and extra work are regulated in detail in German labor law—yet many questions remain unanswered or are handled incorrectly in practice. Here is a summary of the most important findings:
Overtime may only be ordered on a legal basis, must always be compensated, and is subject to statutory limits. The current BAG ruling significantly strengthens the rights of part-time employees in particular. Employers must systematically document working hours and may not endanger the health of their employees.
Our advice: If you are unsure whether your overtime regulations are lawful, whether you are entitled to back pay, or how you can assert your claims, do not hesitate to seek expert advice. An experienced labor law attorney can assess your individual situation and inform you about your rights and options for action. Only those who know their rights can enforce them.
Do you have questions about your employment law entitlements? Contact us for professional advice—we will help you clarify the situation and protect your interests.
