# Law & co-determination – Personaloptimierer

> GDPR, works councils, the AI Act: what applies to HR software.

- [Time Tracking Law in Germany: What Employers Must Do in 2026](https://personaloptimierer.de/en/law-and-works-councils/time-tracking-law-germany/): Yes, employers in Germany must record their employees' working hours. The Federal Labour Court ruled in September 2022 (1 ABR 22/21) that the duty already exists under occupational safety law, regardless of company size. No format is prescribed yet. As of October 2026, a Labour Ministry working draft would make same-day electronic recording the norm. It is not law yet.
- [Works Council IT Systems in Germany: Approval Before Rollout](https://personaloptimierer.de/en/law-and-works-councils/works-council-it-systems/): In Germany, a works council must agree before you introduce almost any IT system, because the test is whether the software is objectively capable of monitoring employees' behaviour or performance, not whether you intend to use it that way (section 87(1) no. 6 BetrVG). Without agreement, the system cannot go live; an arbitration board decides if talks fail.
- [Candidate Data Retention Under GDPR: How Long Is Too Long?](https://personaloptimierer.de/en/law-and-works-councils/candidate-data-retention-gdpr/): GDPR sets no fixed retention period for candidate data. Keep applications only as long as you need them to make the hiring decision and defend against discrimination claims. In the UK and Germany that usually means about six months after rejection. Keeping CVs for future roles needs consent. US employers must keep application records for at least one year.
- [EU AI Act and Recruitment: High-Risk Rules from Dec 2027](https://personaloptimierer.de/en/law-and-works-councils/eu-ai-act-recruitment/): The EU AI Act classes AI used for hiring, promotion, termination, task allocation and performance monitoring as high-risk. After the Digital Omnibus delay, obligations for employers using such systems apply from 2 December 2027: human oversight, log retention, and informing staff and their representatives. Emotion recognition at work has been banned since February 2025.

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