Fired for time fraud in Germany: Your legal options

Working time fraud may sound dramatic, but the accusation often starts with something small: A forgotten punch-out during a smoke break, a slightly longer lunch, or a missed meeting while working from home. But employers in Germany often treat it as a serious breach of trust that can lead to a written warning or even immediate termination without notice. Not every mistake is fraud, though. Technical issues, unclear workplace rules or genuine misunderstandings are not enough for dismissal. This article explains what legally counts as working time fraud, how employers must prove it, and what employees can do if they are accused or even fired because of it.

Key takeaways:

• Working time fraud means intentionally giving false information about hours worked. It includes false time entries, private activities during recorded working hours, or secretly extending breaks.
• Not every irregularity is fraud. If no intent is proven – for example due to unclear rules, technical errors or simple negligence – termination is usually unlawful.
• The employer carries the full burden of proof. Evidence must be clear, lawful and specific; illegal monitoring can make the entire case collapse.
• Consequences range from a written warning to immediate dismissal without notice, and in extreme cases even criminal charges.
• Accused employees should act quickly. Challenging a dismissal in Germany is common practice, and courts often decide in favor of workers.

What counts as working time fraud?

Working time fraud is any intentional act where an employee performs less work than contractually agreed while pretending otherwise. It can happen on-site or in home office settings. The key legal element is intent: the employee must knowingly create a false impression of working time.

Contractual duty to work

Employment contracts, collective bargaining agreements or company policies set out binding working hours. Employees must perform their work during these times and record their hours truthfully. Anyone who knowingly enters incorrect data or “covers up” absences risks being accused of working time fraud. Employees who are confronted with accusations should keep all records, timesheets, emails and instructions. Good documentation often decides whether a dismissal survives in court.

Typical forms of working time fraud (condensed)

• False entries in time tracking systems
• Manipulating punch clocks or login records
• Private tasks during recorded work hours
• Excessive or undocumented breaks, late arrivals, early departures
• Invented travel or field-service time
• Repeated absence without reporting or catching up hours

Even a single proven act can be enough for termination if the employer can show deliberate deception.

Written warning for working time fraud

If the employer detects working time fraud, the usual first step is a written warning. It informs the employee of the breach, demands future compliance, and announces dismissal in case of repetition.

Employees may respond with a written counter-statement for their personnel file if the warning is unfair or factually wrong. This can be helpful later in court, especially if the employer claims the relationship was already “destroyed.”

Termination without notice for working time fraud

Courts see intentional working time fraud as a serious breach of trust. Therefore, termination without notice (fristlose Kündigung) can be valid even without a prior warning. This is more likely if the fraud was repeated, planned, or technically manipulated.

In practice, many employers still offer a severance payment rather than going through a long lawsuit. Labor courts often scrutinize the employer’s evidence very closely, and if intent cannot be proven, the dismissal fails. This litigation risk is why negotiations and settlements are extremely common in German dismissal cases.

Proving working time fraud: burden of proof

The employer must prove the fraud clearly and lawfully. This is often difficult, especially with flexible working hours or remote work.

Usable evidence

• Time logs, access cards, shift plans
• Witness statements from supervisors or colleagues
• Gaps between recorded hours and actual performance

Risky or unlawful evidence

• Secret surveillance software
• Full browser or desktop tracking without consent
• Permanent monitoring without a concrete suspicion

If evidence is collected illegally, courts may declare it unusable. Employers then lose the case even if fraud may have happened.

Frequently asked questions (FAQ)