Workers should exercise caution
In the realm of employment, time theft—the deliberate misrepresentation of working hours—can lead to significant repercussions. A recent ruling by the Cologne Labor Court underscores this, with a ticket inspector ordered to reimburse detective costs of around 20,000 euros for extensive private tasks during documented working hours (LAG Cologne, judgment of February 11, 2025 - 7 Sa 635/23).
Time theft encompasses more than just deliberately circumventing work time regulations, such as punching in and out without actually performing any work. It can also involve making false statements about the hours worked. However, unintentional errors in recording working hours usually do not immediately result in sanctions. The employee's intent and handling of the error, as well as their ability to credibly explain any unintentional errors, are important factors.
The legal basis for time theft is primarily the employment contract. In serious cases, there may be claims for damages. Courts do not trivialize time theft, and even smaller deceptions can be relevant in labor law if they shake the trust between employer and employee.
There are gray areas with trust-based working hours and mobile work, such as short smoking breaks or private calls. Employers must ensure accurate time tracking, establish clear policies, and document evidence before taking legal or disciplinary action to avoid violating employee rights or labor laws. Employee privacy laws may also limit certain monitoring practices, so employers should balance enforcement with legal compliance.
The legal consequences of time theft are largely administrative and civil, revolving around wage disputes and potential discipline. Wage and hour disputes can arise if employers improperly deduct wages or accuse employees without documented proof. Employers must pay employees for all recorded hours unless they have clear proof of misconduct. Failing to comply with accurate timekeeping regulations like the Fair Labor Standards Act (FLSA) can lead to legal claims and costly disputes.
Internal disciplinary measures, such as suspension or termination, may also be imposed when clear evidence of misconduct exists. In rare cases, if time theft escalates to criminal theft or larceny (e.g., falsification of time records combined with stealing company property or funds), criminal charges could apply, potentially leading to prosecution, fines, and imprisonment depending on jurisdiction.
Employers must be cautious when checking the observance of working hours. They may not monitor employees without cause. A justified suspicion of a serious breach of duty is required before engaging detectives or using keyloggers.
The extent and frequency of time theft activities, as well as company regulations, determine whether they can be considered time theft. Other consequences for time theft may include regular dismissal or just a warning, depending on the scope of the theft and other factors such as the duration of the employment relationship.
In summary, the legal consequences of time theft are largely administrative and civil, revolving around wage disputes and potential discipline. Criminal consequences arise only in more severe cases involving theft beyond mere misreported hours. Employers are advised to maintain open and transparent working time recording systems and to establish clear policies to prevent time theft and ensure a fair and productive work environment.
Technology plays a crucial role in accurately tracking and managing working hours, reducing the occurrence of time theft. The use of timesheets, digital clock-in systems, and monitoring software can help employers maintain an accurate record of employee hours and detect time theft more easily.
On the flip side, advanced technology also creates opportunities for employees to falsify their hours worked or conceal non-work activities during work hours, highlighting the need for robust fraud prevention measures and strict adherence to company policies and labor laws.
