Company Outings: Do they count as working hours?

Company outing – the very word fills many employees with anticipation for a day of team building. But just as often, the question arises: Does a company outing count as working time, or do employees have to sacrifice overtime for it? What if the company outing takes place outside of working hours, for example in the evening or on the weekend? And can the boss make participation mandatory? We show what employers and employees need to bear in mind and what applies when the next company outing is coming up.

Company outing – definition: What is a company outing?

A company outing (or corporate outing) is a joint activity organized by the employer outside the usual place of work. It is usually a one-day trip or team event in which the entire workforce or individual departments participate together with their supervisors.

The aim of such a company event is to improve the working atmosphere, strengthen team spirit, and thank employees for their work.

Typical examples of company outings:

• Culinary experiences: cooking classes or street food tours
• Creative events: Painting classes, pottery classes, or DIY projects
• Action-packed events: escape rooms or outdoor challenges
• Team-building activities: Improvisational theater, murder mystery dinners or quiz shows

Important: A company outing is usually voluntary—that is, the staff should be invited, but no one is forced to attend.

A company outing is comparable to other company events such as the Christmas party or the summer party.

From a legal perspective, a company outing is a so-called company social event. It is initiated by the company and serves the purpose of promoting camaraderie among colleagues and strengthening their loyalty to the company.

Does a company outing count as working time?

The basic rule is: If the company outing takes place during regular working hours on a normal working day, participation is recognized as working time. In this case, employees do not have to make up for the scheduled working time and receive their salary. Continued payment of wages is therefore guaranteed, as the outing is effectively working time instead of the usual activity.

The Working Hours Act (ArbZG) provides the framework here: It defines working time as the time from the start to the end of work (excluding breaks) – a company outing organized by the employer within normal working hours falls under this definition and is remunerated as normal work. Other company events, such as a company party (e.g., the Christmas party), also count as working time within normal working hours.

The situation is different if the outing extends beyond normal working hours or does not take place on a regular working day. If the company outing takes place outside of working hours (e.g., in the evening after work) or on a weekend or public holiday, it is generally not considered paid working time. In this case, employees participate in the event in their free time. The employer may voluntarily grant compensation (e.g., another day off as compensation), but is not legally obliged to do so.

Overtime is not normally incurred: If the company outing lasts longer than a normal working day, the additional hours worked cannot be claimed as overtime. This means that if, for example, the celebrations continue into the night after the official program has ended, the additional time does not count as working time.

The employment contract or a works agreement may expressly stipulate how company outings are to be handled. However, unless otherwise agreed, the usual practice is generally applied.

How is time recording for part-time employees regulated during a company outing?

The question of how hours are credited arises particularly in the case of part-time employees. The answer: Part-time employees are usually credited only for their contractually agreed working hours – anything beyond that is considered voluntary participation.

If an employee normally only works until noon (4 hours a day) and the company outing lasts the whole day, only the 4 hours are paid as working time. No overtime or additional compensation for the afternoon, as this would put the part-time employee in a better position than their full-time colleagues, which would violate the principle of equal treatment.

Does time spent after working hours or on weekends on a company outing count as overtime?

No – time spent on a company outing beyond regular working hours does not count as overtime in the sense of labor law.

Some examples:

• If the official part of the outing ends at 5 p.m. and some colleagues stay together longer after that, the time after 5 p.m. no longer counts as working time.
• If the company outing takes place on the weekend or on what is actually a day off, the employees are participating in their free time – consequently, no overtime is incurred and there is no entitlement to wages for this time.

How is insurance legally regulated for company outings?

An important point for company events is accident insurance. The good news is that during an official company outing, participants are legally covered by accident insurance

What are the legal regulations governing insurance on company outings?

An important consideration for company events is accident insurance. The good news is that participants are legally covered by accident insurance during official company outings.

This means that if an employee suffers an accident or injury during an outing, statutory accident insurance usually applies—just as it would if the accident occurred during working hours. An accident on a company outing counts as a work-related accident. The journey to and from the event is also covered, provided it is the direct route.

However, insurance coverage is subject to certain conditions:

• Initiative of the employer: The outing must be organized or approved by the company or employer.
• Participation of company management: Ideally, company management or a department head should participate in the event.
• Open to all employees: All company employees or department members must be invited.
• Communal purpose: The purpose of the event must be recognizable as promoting company cohesion.

Are employees required to participate in a company outing?

No, participation in a company outing is voluntary. Employers may not force employees to participate in such leisure activities.

Outside of working hours—such as on weekends or in the evenings—employers cannot oblige their staff to participate in company events. A company outing is not a mandatory work event, but rather a voluntary team-building exercise. Anyone who does not want to participate is therefore free to decline the company outing without fear of consequences under labor law.

Anyone who does not want to participate in a company outing that takes place during working hours must work as usual instead. After all, there is an obligation to work during working hours.

What the employer is not allowed to do is to order compulsory leave for those who refuse to go on the outing.

Do you need a doctor's note if you are sick on the day of the company outing?

If an employee falls ill on the day of the company outing, the same labor law applies as on a regular working day. The sick note is submitted as usual. This means that the employee must report sick to their employer and, if customary in the company, submit a certificate of incapacity for work (doctor's note) from the first day of illness. If the employer usually requests a medical certificate at a later date, the same rules apply.

Company outing – Costs: Who pays for the company outing?

Who bears the costs for food, drinks, admission fees, or activities during the company outing? In practice, the employer often covers the entire cost of the company outing.

However, there is no legal obligation for the employer to cover all costs. In theory, the employer can agree on a cost-sharing arrangement with the employees. It is important that this is clearly communicated in advance.

In Germany, there is also a tax aspect: employer contributions to company events are tax-free up to €110 (gross) per participant. This allowance applies per event, for a maximum of two events per year. You can find out more about this in our magazine article “Tax deductions for company parties”.

Disclaimer: The contents of this article are for informational purposes only and do not constitute legal advice. They cannot and should not replace individual legal advice tailored to the specific situation. All information is provided without guarantee as to its accuracy, completeness, or timeliness.