How to Correctly Document Overtime in Time Tracking

Why accurate overtime records matter

Among our users I often notice that overtime is worked but only partially logged or not recorded at all. This later leads to disputes during invoicing or even problems during an audit.

The ECJ ruling of 14 May 2019 (C-55/18) strengthened the obligation for systematic working time recording in Germany. The Federal Labour Court followed in 2022. In short: without traceable documentation, overtime may simply not be recognised later.

Legal foundations in practice

The Working Hours Act (ArbZG) sets maximum working times and breaks. Overtime itself is not prohibited but must be recorded. For freelancers and small teams the obligation does not always apply directly, yet it becomes relevant when working with clients or if the relationship later turns into employment.

I have seen a freelancer try to prove 47 overtime hours after six months of project work – without complete records it simply did not work.

Step-by-step: recording overtime correctly

Start by tracking every minute worked. Use an app that automatically logs start and end times. Manual additions afterwards are prone to errors.

At the end of the day or week mark the hours that exceed the contractually agreed working time. Important: note not only the total but also the reason and the date.

1. Set time stamps (app or tool)
2. Flag overtime automatically or manually
3. Add a short reason (e.g. “client deadline”)
4. Review and sign off monthly

A concrete calculation example

A freelancer charges €90 per hour. 14 unrecorded quarter-hours per month equal 3.5 hours. 3.5 × €90 results in €315 of lost revenue. Over 12 months that adds up to €3,780 per year – simply because the quarter-hours were not documented properly.

Special cases in overtime documentation

With remote work the boundaries often blur. A quick evening email check easily becomes unpaid overtime. Defining fixed “working hours” in the time tracking tool and marking everything outside as overtime helps here.

In project work with fixed-price contracts documentation remains important. Even if you do not bill by the hour you still need records for the tax office or renegotiations.

Comparison: manual notes vs dedicated time tracking app

The app clearly wins when proof is needed. Excel spreadsheets sit in between but are equally error-prone when maintained manually.

Common pitfalls from real use

Many only record core working hours and forget calls or short evening tasks. Others log the hours but without date or context. Both are usually insufficient later.

Another point: breaks. If you document overtime you must also deduct breaks correctly. Otherwise unrealistic figures appear that stand out during an audit.

With free time tracking in Jomawo you can automatically flag overtime and export it monthly. That saves time and reduces mistakes.

Have a look at how overtime can be calculated automatically – the article Automatically calculate overtime with time tracking shows further practical approaches.

It is also worth checking the guide Filling out timesheet correctly for additional daily documentation tips.

What to check at the end of the month

At month-end summarise all recorded overtime. Verify that it matches the agreed rules. For employees, compensation through time off or a surcharge often applies – this must also be documented.

Export the data as PDF or CSV and keep it for at least two years. This is not legal advice but a good habit I see with many users.

In the end one thing counts most: the documentation must be understandable for an outsider. If you achieve that you are on the safe side.