Executive Summary: A Landmark Ruling

For millions of workers in sectors such as construction, landscaping, cleaning, and home care, the morning commute has historically been a "grey zone"—a period spent in a company vehicle that was neither fully private time nor officially paid labor. That changed on October 9, 2025. In a landmark decision, the European Court of Justice (ECJ) ruled that time spent traveling from a company depot to a job site in a company-provided vehicle constitutes "working time" under EU law.

This ruling is not merely a legal technicality; it is a significant financial shift. For employees hovering near the statutory minimum wage, this could mean an additional €15 to €20 in daily gross income. With the German minimum wage set to rise to €14.60 per hour on January 1, 2027, the financial implications for affected workers are profound, potentially amounting to hundreds of euros in back pay or increased monthly earnings.


The Chronology of a Legal Shift

The path to this decision began in Spain with a landscaping company that required its employees to meet at a central depot each morning before being transported to various, ever-changing work sites. While the company compensated the workers for the morning commute, the return journey at the end of the day was deemed personal time.

The employees challenged this practice, arguing that their time was not their own during these transits. The case eventually reached the European Court of Justice (Case C-110/24). The ECJ’s mandate was clear: under the EU Working Time Directive, there is no "third category" of time. A period is either "working time" or "rest time." If an employee is at the disposal of their employer and cannot manage their own time—regardless of whether they are driving the vehicle, sitting in the passenger seat, or even resting—they are working.


The Three Pillars of Working Time

The ECJ established that for a commute to be considered working time, three criteria must generally be met:

  1. Employer Control: The employee is required to travel from a specific, employer-mandated point (e.g., the company depot).
  2. Lack of Autonomy: The employee cannot freely dispose of their time (they cannot decide to stop for coffee or take a detour for personal errands).
  3. Duty of Availability: The employee is effectively at the disposal of the employer during the transit, often performing tasks such as navigating, preparing equipment, or remaining ready to assist at the destination.

Implications for German Employment Law

For years, German employers have relied on the so-called "Beanspruchungstheorie" (Strain Theory), which argued that only the driver of a vehicle is "working" because they are under physical and mental strain, while passengers are "resting." The ECJ ruling renders this distinction effectively obsolete.

The Death of "Unpaid Transit" Clauses

Many employment contracts in the trades and service sectors contain clauses explicitly stating that time spent traveling from the depot to the site is not considered working time. Following the ECJ ruling, these clauses are likely legally unenforceable if they result in the employee’s total compensation falling below the statutory minimum wage.

Fahrt zur Arbeit ist Arbeitszeit: Ab 2027 gibt es 428 Euro mehr im Monat

Employers may still pay lower rates for transit time compared to active site labor, but they must ensure that the average hourly wage across the entire shift—including the transit—does not dip below the mandatory floor. As of January 2026, the German minimum wage is €13.90, rising to €14.60 on January 1, 2027.


Financial Analysis: The "Missing Wage" Calculation

To understand the impact, consider the case of a painter who spends 80 minutes daily traveling from the company depot to various sites and back.

Current Scenario:

  • Contracted Hours: 7.5 hours per day.
  • Daily Gross Pay (at current minimum wage): €104.25.
  • Total Time Invested: 8 hours and 50 minutes.
  • Actual Hourly Rate: €11.80 (significantly below the legal minimum).

The Corrective Math:
To comply with the law, the employer must compensate the painter for the full 8 hours and 50 minutes. At the minimum wage, the daily pay should be €122.78. This represents a daily shortfall of €18.53. Over a standard month of 22 working days, this amounts to over €400 in lost wages.

When the minimum wage increases to €14.60 in 2027, the math shifts again. The daily requirement rises to €128.97, and the monthly deficit for our hypothetical painter climbs to nearly €430.

Even workers earning slightly above the minimum wage are affected. If an employee earns €16.00 per hour, they may still be falling below the legal minimum once the 80 minutes of daily unpaid transit are factored in. This "hidden" wage theft is a systemic issue affecting over 1.6 million workers in the construction and cleaning sectors alone.


Are You Affected? A Checklist

If you can answer "Yes" to the following three questions, your commute might legally qualify as working time:

Fahrt zur Arbeit ist Arbeitszeit: Ab 2027 gibt es 428 Euro mehr im Monat
  1. Do you have a fixed meeting point (e.g., a company yard or depot) that you must report to before heading to the job site?
  2. Are you required to travel to the site in a company-provided vehicle, either as a driver or a passenger?
  3. Do you have no influence over the route, the stops, or the time of departure?

If you meet these criteria, you are likely entitled to have that transit time counted as working time. Conversely, if you commute directly from your home to a fixed, permanent workplace, this ruling does not apply to you.


Practical Steps for Employees

If you believe your wages have been systematically underpaid, the following steps are recommended:

  • Documentation: Start a detailed log. Record the date, the time you arrive at the depot, the time you arrive at the site, and the time you leave. Document who else was in the vehicle.
  • The Three-Year Rule: Under German law, wage claims typically expire after three years, calculated from the end of the year in which the claim arose. Claims from 2023 will expire on December 31, 2026.
  • Formal Demand: A simple conversation is rarely enough. Submit a written request to your employer asking for the reclassification of your transit time.
  • Legal Protections: Note that "exclusion periods" (Ausschlussfristen) often found in contracts—which limit the time you have to claim unpaid wages—cannot be used to bypass the statutory minimum wage. If your wage is below the minimum, these clauses are invalid.
  • Consultation: If the employer refuses to pay, consider seeking advice from a labor union or an attorney. In the first instance at a German labor court, you do not require a lawyer, though legal representation is strongly advised for complex claims.

The Overlooked Secondary Benefit: Travel Allowances

Beyond the primary ruling on working time, employees should also review their rights regarding "Verpflegungsmehraufwand" (additional meal expenses).

If you are professionally away from your home and your primary place of work for more than eight hours, you may be entitled to claim a tax-deductible flat rate of €14 per day as professional expenses (Werbungskosten). While this is usually a tax-offsetting mechanism, some collective bargaining agreements (Tarifverträge) mandate that employers pay this directly. A 2024 Federal Labor Court ruling (Az. 5 AZR 232/23) confirmed that when a contract refers to tax guidelines for expenses, the employer may be legally bound to pay them.


Conclusion: A New Era of Transparency

The ECJ’s ruling is a powerful reminder that "time" is a commodity that cannot be arbitrarily sliced by employers. As the gap between the official working day and the actual time committed to the employer grows, so does the risk of litigation for companies that refuse to adapt.

For the worker, the message is clear: your time has value. Whether you are behind the wheel or simply a passenger in a company van, you are contributing to the firm’s productivity. Starting in 2027, with the minimum wage rising to €14.60, the economic pressure on employers to rectify these practices will only intensify. It is time for employees to review their contracts, log their hours, and claim what is rightfully theirs.

By Basiran