Trust-Based Working Hours and Time Tracking: Contradiction or the Future of Modern Work?

Trust-based working hours still work in an era of mandatory time tracking – as long as freedom, transparency, and modern digital tools work together.
Trust Based Time Tracking in Companies
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Jan Joergensen

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Trust-based working hours have been a symbol of modern work culture for years. Employees decide for themselves how they structure their day, when they take breaks, and where they work from. What matters is the result, not physical presence.

Since the European Court of Justice (ECJ) ruling on mandatory working time recording and the landmark decision of the German Federal Labour Court (BAG), however, many companies are asking the same question:

Can trust-based working hours still exist under these conditions?

The short answer: yes and perhaps even better than before.

Trust-based working hours and time tracking are not mutually exclusive; they can coexist effectively. With digital time tracking tools like Timebutler, self-determination, transparency, and legal certainty can be easily combined.

Benefits of Trust-Based Working Hours

  • Trust-based working hours and mandatory time tracking are compatible as long as time tracking is implemented as a neutral, digital process rather than a control tool.
  • German employers are already legally obliged to introduce a system for recording working time, based on ECJ case law (C-55/18) and the BAG decision of 13 September 2022 (1 ABR 22/21).
  • Digital time tracking supports employee protection, ensures compliance with rest and break requirements, and prevents hidden overtime and overload.
  • Modern tools preserve autonomy: employees manage their own time entries while companies gain transparency, fair treatment, and significantly less administrative work.
  • Browser-based, GDPR-compliant solutions like Timebutler work well for SMEs because they can be implemented quickly and without the need for extensive training.

What is Trust-Based Working Time?

Trust-Based Working Time (also known as Vertrauensarbeitszeit in Germany) is a work model where employees are trusted to manage their own work schedule, including when, where, and how they work — as long as the agreed-upon results are delivered.

Instead of tracking hours closely or requiring strict schedules, the focus shifts to output, autonomy, and personal responsibility.

In a trust-based working time model, self-responsibility is central. Employees organise their working hours freely, as long as the agreed performance and targets are met. The employer deliberately refrains from monitoring presence times or constantly checking detailed schedules.

What are the Advantages of Trust-Based Working Hours?

  • More flexibility and individual freedom: employees can align their working hours with personal peak productivity phases, family obligations, or appointments.
  • Higher motivation and stronger ownership: when results count more than hours, work is perceived as more meaningful, and employees feel a stronger sense of responsibility for outcomes.
  • Better work–life balance: greater time flexibility supports a healthier balance between work and private life, which in turn promotes satisfaction and long-term loyalty.

For many teams — across industries and company sizes — trust-based working hours are therefore an important building block of an attractive, modern employer brand.

Why Is There a Time Tracking Obligation Despite Trust-Based Working Hours?

The German Federal Labour Court has made it clear: working time must be recorded — for all employees, in every working time model. The BAG derives this obligation from the German Occupational Safety and Health Act, in line with ECJ case law. 

This obligation is not intended to undermine trust. It primarily serves employee protection and occupational safety.

What Exactly Must Be Recorded?

  • Start, end, and duration of daily working time: this includes regular working hours as well as overtime.
  • Compliance with statutory rest and break times: time records ensure that minimum breaks and daily/weekly rest periods are observed.
  • Prevention of overload and excessive overtime: only with reliable data can companies identify unhealthy patterns and react at an early stage.

Time tracking is therefore not a sign of mistrust, but a tool of occupational health and safety — and thus in the interest of both employees and employers.

Why Trust and Time Tracking Fit Together

In modern organisations, time tracking is no longer synonymous with time clocks and rigid control. Digital systems allow for time recording that is:

  • lightweight,
  • unobtrusive,
  • reliable,
  • And largely automated.

Employees retain the freedom of their working model, while the company meets its legal obligations.

What This Looks Like in Practice

  • Employees record their times independently via web browser, mobile app, or terminal — in the office, at home, or on the go.
  • Automatic prompts and validations ensure that breaks and daily/weekly rest periods are not forgotten or violated.
  • Managers see only the data they truly need for capacity planning, payroll, or compliance reports, avoiding unnecessary micromanagement.

The result is transparency without micromanagement. This is exactly how many teams that work with Timebutler describe their everyday experience.

The Key Benefits of Digital Time Tracking in Trust-Based Work Models

Digital time tracking systems strike a balance between clear structure and genuine freedom. Instead of weakening a trust-based culture, they strengthen it — provided they are implemented transparently and user-centred.

1. Legal Certainty Without Extra Work

A suitable system automatically maps legal requirements and helps ensure that:

  • Daily and weekly maximum working hours are observed,
  • Breaks and rest periods are documented,
  • And time data are available in a form that stands up to audits and inspections.

This reduces legal risks and provides management and HR with greater confidence in their decisions.

2. Fairness and Equal Treatment for All Employees

Uniform digital recording ensures that:

  • Everyone tracks time according to the same rules,
  • Overtime is visible and can be compensated transparently,
  • Individual preferences do not lead to hidden disadvantages.

In this way, time tracking becomes a fairness tool rather than a control instrument.

3. Preserved Autonomy and Self-Responsibility

Trust-based working hours remain intact when:

  • Employees manage their own time entries,
  • Corrections are transparent and straightforward,
  • And data access is clear and comprehensible.

This maintains the principle of trust while documenting one’s own working hours.

4. Better Workload Transparency and Capacity Planning

Digital time data helps answer key questions like:

  • Where does overtime accumulate regularly?
  • Which teams or roles are permanently overloaded?
  • Where are there reserves or capacity for new projects?

This enables proactive planning, reduces burnout risk, and supports sustainable workload management.

5. Fewer Conflicts and Misunderstandings

Clear, retrievable time records:

  • Prevent disputes about overtime and availability,
  • Simplify communication between employees, HR, and management,
  • And provide a neutral basis for discussions about workload or compensation.

Objective data replace gut feelings — and that typically lowers the potential for conflict.

6. Higher Efficiency Through Automation

Digital time tracking:

  • Replaces Excel lists and manual notes,
  • Reduces administrative questions (“Did I log my holiday?”, “How much overtime do I have?”),
  • And accelerates payroll and reporting.

Teams can focus more on their actual work instead of administration.

7. Strengthened Trust Through Transparency

When rules and data are transparent, and the system is used consistently for everyone:

  • Employees feel that they are treated fairly,
  • Leaders gain an overview without having to control every detail,
  • And the trust-based culture is supported rather than undermined.

Trust and structure no longer stand in opposition but reinforce each other.

Which Tools Are Suitable for Trust-Based Working Hours and Time Tracking?

The choice of tool is critical. The system should prioritize autonomy and legal certainty over complicating work.

The Core Requirements for a Suitable Time Tracking Solution

A good solution for trust-based working models should:

  • Be GDPR-compliant: personal data must be processed securely and in line with data protection law.
  • Be quick and easy to roll out: ideally, teams can start within a few hours — without extensive training.
  • Enable self-service time recording: employees should be able to enter and view their own times easily from anywhere.
  • Integrate smoothly into existing processes: for example, via interfaces to payroll, HR software, or project management tools.

Many companies, therefore, prefer systems that operate with minimal friction and reliably strike a balance between freedom and legal certainty. Timebutler was developed precisely for this: clear workflows, low friction, and fast implementation.

Short List: Tools Commonly Used for Trust-Based Time Tracking

The right choice always depends on company size, sector, and existing IT landscape. But here are a few time tracking solutions worth exploring.

  1. Timebutler: browser-based, GDPR-compliant solution designed for easy adoption, self-service time tracking, and legally secure documentation — ideal for small and medium-sized teams.
  2. Clockify: widely used time tracking tool with project-based tracking and reporting, suitable for teams that want to link time to tasks and projects.
  3. Personio (Time Tracking module): HR suite with integrated working time recording, particularly relevant for SMEs that already use or plan to use Personio for HR processes.
  4. Harvest: focused strongly on project and client-based time tracking and billing, often used in agencies and consulting firms.

Conclusion: Trust and Structure Are Not Opposites

Trust-based working hours and time tracking no longer exclude each other. Instead, they complement each other. Digital tools enable organizations to meet legal requirements while maintaining a culture of autonomy and self-responsibility.

When transparency is not framed as control but as protection, efficiency, flexibility, and legal certainty can be combined in a single work model.

Many teams that use such systems report working more relaxed, more focused, and more sustainably — a clear step toward the future of modern work.

To see how trust-based working hours can be implemented with minimal effort and in a legally secure manner, simply try Timebutler for free. You and your team can directly test how well flexibility and clear structures complement each other in everyday life.

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