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company outing during working hours
Company outing during working hours: Your rights and obligations!
A company outing can boost employee motivation and strengthen team spirit. But what applies if the outing takes place during working hours? Does it count as working time? Is participation mandatory? And who bears the costs? Discover the answers to these questions and learn how to optimally plan your next company outing. You can find more information in our contact section.
The topic, briefly and concisely
A company outing during working hours is considered paid working time, which increases employee satisfaction and retention. This can reduce turnover by up to 10%.
Participation is generally voluntary, but if scheduled during working hours, an alternative work option must be offered. Compliance with labour law regulations is crucial.
Take advantage of the tax allowance of €110 per participant and, if appropriate, combine the excursion with corporate training for strategic tax optimisation. This can reduce actual costs by up to 20%.
Learn how to organise a company outing during working hours in a legally compliant and appealing manner. Avoid pitfalls and take advantage of tax benefits! Get informed now!
Introduction to the Company Outing during Working Hours
What is a Company Outing?
Definition and Purpose
A company outing is an employer-organized trip for the entire workforce. Its primary aim is to promote team spirit and employee retention. Such outings offer a welcome break from the daily work routine and allow employees to get to know each other better in a relaxed atmosphere. This can significantly enhance teamwork and communication within the team. A well-planned company outing can thus positively impact the working environment and increase employee motivation.
Objectives of a Company Outing
Strengthening Team Spirit: Through shared experiences outside the workplace.
Promoting Employee Retention: Appreciation and recognition of employees.
Improving Communication: In a casual setting, employees can interact more effectively.
Why is the Topic of Working Hours Relevant?
Differentiating between Work Time and Leisure Time
The question of whether a company outing is considered work time or leisure is crucial. If the company outing takes place during regular working hours, it is generally regarded as work time. This impacts compensation and the obligation to participate. However, if the outing occurs outside regular working hours, such as on the weekend, it is considered leisure time, which involves different regulations. Clear differentiation is important to avoid misunderstandings and legal issues.
Legal Framework and Its Significance
The legal framework, particularly the Working Hours Act (ArbZG), plays an important role in determining whether a company outing is considered work time. The ArbZG defines which times are considered work time and which are not. This definition is crucial for determining the rights and obligations of employers and employees in connection with company outings. It is important to be familiar with these fundamentals to act legally and consider the interests of all parties involved. The legal provisions are not always clear and often require individual interpretation.
Reduce labour costs through accurate time tracking
Labour law aspects of company outings
The correct handling of working hours during a company outing is crucial for compliance with labour law regulations and avoiding conflicts. There are significant differences depending on whether the outing takes place during or outside regular working hours. Clear rules and communication are essential in this regard.
Company outing during regular working hours
Considered working time with full pay
If a company outing takes place during regular working hours, it is generally considered working time. This means that the participating employees receive their full pay for this time. This applies regardless of whether the employees are actually working or participating in the activities of the outing. The time spent on the outing is treated like normal working time.
No entitlement to overtime pay, even if the event lasts longer
Even if the company outing lasts longer than the regular working hours, there is generally no entitlement to overtime pay. This is the case as long as the outing remains within the usual limits and cannot be seen as an additional work burden. However, it is important for the employer to clearly communicate this in advance to avoid misunderstandings. The definition of working time is crucial here.
Company outing outside regular working hours (weekend/holiday)
Considered leisure time; participation is voluntary
If a company outing takes place outside regular working hours, for example on a weekend or public holiday, it is considered leisure time. Participation in such an outing is generally voluntary. Employees can decide for themselves whether they wish to participate. There is no obligation to take part in the outing.
No entitlement to pay, but compensatory time off can be agreed upon
As the company outing is considered leisure time in this case, there is no entitlement to pay. However, the employer may voluntarily offer compensatory time off. This means that employees receive time off on another day in exchange for participating in the outing. Such an arrangement should be clearly agreed in advance. It is important to clearly delineate the distinction from working time.
Employee satisfaction through flexible participation options
Obligation to Participate and Alternatives
Participation in a company outing is a sensitive topic that touches on both employee rights and employer interests. In principle, participation is voluntary, unless there are specific agreements or instructions.
Voluntary Participation
No Obligation to Participate in Principle
In principle, employees are not obliged to take part in a company outing. This is especially true if the outing takes place outside of regular working hours. Employees have the right to organise their free time as they wish and cannot be forced to participate in such an event. The voluntary nature of participation is an important aspect of employment law.
Exception: Employer Instruction During Working Hours with Alternative Work Option
An exception to this rule exists when the employer schedules the company outing during regular working hours. In this case, participation can be mandatory for employees. However, the employer must offer an alternative work option to employees who do not wish to participate. Employees must not be forced to take leave or unpaid time off. The instruction to participate must be fair and transparent.
Rights of Non-Participating Employees
Right to Regular Work or Use of Leave Days
Employees who do not participate in a company outing have the right to carry out their regular work. Alternatively, they may choose to use leave days if they wish. However, the employer must not force employees to take leave. The decision lies with the employee.
Employer Must Provide Work Options
The employer is obliged to offer suitable work options to employees who do not participate in the company outing. This could include carrying out office tasks or working on projects. The employer must ensure that employees are engaged during regular working hours and can carry out their duties. The duties of the employer are clearly defined.
Properly Handle Absence Due to Illness
Sick Leave and Absences
If an employee cannot participate in a company outing due to illness, certain rules and procedures must be followed. These concern both the employee's duties and the employer's rights.
Sick Notification in Case of Prevention
Formal Sick Notification Required if the Company Outing Takes Place During Working Hours
If the company outing takes place during regular working hours and an employee cannot attend due to illness, a formal sick notification is required. This means that the employee must immediately inform the employer of their inability to work. Ideally, the sick notification should be in writing to avoid misunderstandings. The sick notification is an important proof of absence.
Compliance with Company Policies (e.g., Notification on the First Day of Illness)
When providing a sick notification, company policies must be followed. Many companies have specific regulations on how and when a sick notification should be submitted. It is often required to notify the employer on the first day of illness. It is important to know and adhere to these policies to avoid legal consequences. The company regulations are binding.
Employer's Right to a Medical Certificate
Employer May Require a Medical Certificate from the First Day of Illness
The employer has the right to request a medical certificate from the sick employee from the first day of illness. This serves as evidence of the inability to work and aims to prevent misuse. It is important to know that the cost of the certificate is usually borne by the employee, unless there are different agreements. The right to a certificate is legally established.
Minimise accident risks with comprehensive insurance coverage
Accident Insurance Coverage
Accident insurance coverage during a company outing is an important aspect that affects both employee safety and employer liability. It is crucial to understand the conditions and limits of the insurance coverage.
Conditions for Insurance Coverage
Official event organised by the employer, open to all employees, under the leadership of responsible persons
The accident insurance coverage applies if the company outing is considered an official event organised by the employer. This means the outing must be organised by the employer and open to all employees. Additionally, the event must be under the leadership of responsible individuals who are accountable for the safety and conduct of the outing. The official organisation is crucial.
Direct work route is also insured
The direct route to and from the company outing is also covered by accident insurance. This means that accidents occurring on the way to the meeting point or on the way home are considered workplace accidents and are therefore insured. However, it is important that it is the direct route and that no unnecessary detours are made. The commute is part of the insurance coverage.
Exclusion of Insurance Coverage
Heavy intoxication or negligent behaviour outside planned activities
The insurance coverage can be excluded if an employee is heavily intoxicated during the company outing or behaves negligently. Also, if accidents occur outside of the planned activities, the insurance coverage may lapse. It is therefore important to follow the rules and instructions of the responsible individuals and to pay attention to one's own safety. Personal responsibility is required here.
End of insurance coverage when the event becomes a private party
The insurance coverage ends when the company outing turns into a private party. This is the case, for example, when a part of the employees meets for a private party after the official end of the outing. In this instance, it no longer counts as an event organised by the employer, and the insurance coverage lapses. The boundary between official event and private party is important.
Make the most of tax benefits and reduce costs
Cost Coverage and Tax Aspects
The cost coverage and tax aspects of a company outing are important factors that need to be considered during planning and execution. There are various ways to manage costs and take advantage of tax benefits.
Cost Coverage by the Employer
Usually, the employer covers the costs (transport, catering, admission)
In most cases, the employer bears the costs of the company outing. This generally includes expenses for transport, catering, and admission fees. The employer can claim these costs as business expenses and thus deduct them for tax purposes. Costs covered by the employer are common.
Employee Contribution is Possible
It is also possible for employees to contribute to the costs of the company outing. This can be done, for example, through a personal contribution or by covering certain expenses. Such arrangements should be clearly communicated and agreed upon in advance. The employee contribution must be transparent.
Tax Allowance
Employer contributions up to €110 (gross) per participant are tax-free
There is a tax allowance of €110 (gross) per participant for employer contributions to employees during a company outing. This amount covers all expenses the employer incurs for the outing, such as transport, catering, and admission fees. Contributions up to this amount are exempt from tax and social security contributions. The tax allowance is a significant advantage.
Employees can cover costs beyond this amount (written statement required)
If the costs of the company outing exceed the tax allowance of €110 per participant, employees can cover the costs that exceed this amount themselves. In this case, a written declaration of cost coverage by the employees is required. This declaration serves as proof for the tax authorities and ensures that the employer's contributions remain tax-free. The written declaration is important.
Strategic Tax Optimisation
Combining with corporate training to potentially offset training costs
Strategic tax optimisation can be achieved by combining the company outing with corporate training. If the outing has a training component and the content provided is relevant to the employees' job roles, the training costs may be deductible as business expenses. This can lead to significant tax savings. The combination with training is a smart strategy.
Positive corporate culture through respectful manners
Behaviour Guidelines and Etiquette
The behaviour guidelines and etiquette during a company outing significantly contribute to fostering positive relationships among employees and promoting a pleasant atmosphere. It is important that all participants behave respectfully and appropriately.
Appropriate Behaviour
Avoiding Sensitive Business Topics and Inappropriate Behaviour (Violence, Harassment)
During a company outing, sensitive business topics should be avoided. The outing is primarily for relaxation and fostering team spirit, not for discussing business issues. Inappropriate behaviour, such as violence or harassment, is absolutely off-limits. Such conduct can not only dampen the mood but also have legal consequences. Respectful behaviour is essential.
Maintaining Formal Addressing of Supervisors, Especially When Consuming Alcohol
Even during a company outing, the formal addressing of supervisors should be maintained, especially when alcohol is consumed. This respects and upholds the hierarchy. It is important to behave professionally even in a relaxed atmosphere and not to overstep boundaries. The formal addressing is a sign of respect.
Promotion of Networking and Team Dynamics
Good Manners for Positive Relationship Building
Good manners are crucial for positively building relationships among employees. This includes courtesy, friendliness, and helpfulness. Respectful interaction ensures all participants feel comfortable and can enjoy the company outing. The promotion of networking is an important aspect.
Ensure equality through inclusive participation
Principle of Equal Treatment
The principle of equal treatment also plays an important role in company outings. All employees generally have the right to participate, regardless of their status or length of service. However, there are exceptions to this rule.
Right to Participate for All Employees
Even employees who have resigned or whose contracts have expired have the right to participate
Even employees who have already resigned or whose contracts have expired generally have the right to participate in a company outing. This applies as long as they are still employed by the company at the time of the outing. The employer cannot exclude these employees from participation, unless there are valid reasons. The principle of equal treatment applies to all.
Exceptions
Exceptions when absence is critical for the organisation (e.g. telephone operator at a police station)
An exception to this rule exists if an employee's absence is critical for the organisation. This can be the case, for example, if a telephone operator at a police station cannot attend the outing as it would endanger emergency call services. In such cases, the employer can refuse the employee's participation. The exceptions to the principle of equal treatment are narrowly defined.
Using company outings as a strategic tool
More useful links
Gründer.de explains the legal aspects of company outings in relation to working hours.
Shiftbase offers a dictionary definition and explanations on the topic of company outings.
FirmenABC differentiates company outings between leisure and obligation.
FAQ
What is considered working time during a company outing?
A company outing that takes place during regular working hours is generally regarded as working time. Employees are entitled to their full salary for this period.
Is participation in the company outing mandatory?
In principle, there is no obligation to participate, especially if the outing occurs outside regular working hours. If it takes place during working hours, the employer may require participation but must offer an alternative work option.
What happens if an employee is unable to participate in the company outing due to illness?
If the company outing occurs during working hours, a formal sick leave notification is required. The employer can request a doctor's certificate from the first day of illness.
Who pays for the company outing?
Typically, the employer covers the costs of transport, food, and entry fees. An employee contribution is possible, but it should be clearly communicated in advance.
Is there a tax exemption for company outings?
Yes, contributions up to €110 (gross) per participant are tax-free. Employees can bear costs beyond this amount but require a written declaration.
How is accident insurance coverage regulated during a company outing?
Accident insurance coverage applies if the company outing is an official event of the employer, open to all employees and supervised by responsible persons. The direct route to work is also insured.
What are the main behavioural guidelines during a company outing?
Sensitive business topics should be avoided, and appropriate behaviour should be maintained. The formal address of superiors should be upheld, especially when alcohol is involved.
Do employees who have resigned also have the right to participate?
Yes, employees who have resigned or whose contracts have expired generally have the right to participate, as long as they are still employed by the company at the time of the outing.
