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 All employees should have a written employment contract
identifying major aspects of the employment relationship.
The contract should also include items such as parties
involved, gross salary and benefits, required work, vacation
entitlement, start date, location of performance, and
notice periods.
 Although employers and employees may create limited
term contracts, employment contracts are assumed to be
for an unlimited time period (unless otherwise specified).
 Probationary periods are permitted for up to 6 months.
Probation times require a notice that at least 2 weeks must
be granted to any employees to be terminated.
(http://www.ilo.org)
 Termination notices require a minimum of four weeks. (This is
distinct from the requirement of notification for termination
during probation period).
 The longer an employee has been with a company, the
more advance notice of termination is required. With a
minimum statutory requirement of 4 months, one month of
required notification time shall be added as an employee
completes the 5th, 8th, 10th, 12th and 15th years with the
same employer.
 In Germany, the law distinguishes between Ordinary
Termination (with notice) and Extraordinary Termination
(without notice).
 For Ordinary Termination, expiration of the period of
notification will conclude the employment relationship.
 With Extraordinary Termination, termination notifies
immediately ends the employment contract.
 Extraordinary Termination usually occurs with instances of
serious misconduct. Termination must occur within a two
week period from the moment the notifying party
becomes aware of the information critical to the
termination.
 Extraordinary Termination is legally permissible when
there is significant reason making it inappropriate to
continue the employment contract until the end of the
notice period.
 For fixed contracts, extraordinary termination will terminate
the contract immediately dissolving the obligation to
continue employment through the expiration stipulated in
the contract.
 Seven months is the maximum period of termination
notification required for any employee and is reserved for
those who have completed 20 years of service.
 Any years of service for the same employer prior to the
employee’s 25th birthday will not be taken into account
when calculating the entitlement of termination notice.
(http://www.ilo.org)
 German law sets 48 hours as the normal work week with 8
hours per day.
 In certain cases of collective agreement however, the
employee work week may be reduced to anywhere
between 35 to 38.5 hours.
 Expecting or nursing mothers may not work more than 8
hours a day.
 Likewise, employees/trainees under the age of 18 may not
work more than 8 hours a day.
 Excluding those under 18 and nursing/pregnant women,
employees may have the work day extended up to 10
hours, provided that the average amount of hours per day
remains at 8 for the following 6 months .
(http://www.ilo.org)
 Female employees are entitled to maternity leave all
throughout the pregnancy and up to 4 months after the
birth of the child. During this time, the employee is
protected from dismissal, with or without notice.
 The female employee may not work for the employer, for
any reason, for the period of 6 weeks before birth until 8
weeks following birth.
 In the event of multiple or premature births, the female
employee may not work for the employer for 12 weeks after
the birth.
 During maternity leave, the female employee receives a
maternity allowance paid from a health insurance fund and
supplement provided by the employer.
 If, per doctor’s orders, the pregnant employee must
completely or partly cease working to avoid a risk to herself
or the unborn child, the employer is obligated to partly/fully
release her from work obligations. In addition, the female
employee will receive a maternity wage equaling her
previous salary/wage.
 When an employer is alerted of a pregnant employee, the
work tasks and work site must be structured in such a way as
to favor the pregnant/nursing worker. The pregnant/nursing
employee cannot be required to do any heavy lifting or
interact with dangerous materials.
 The employer is liable for any violation to this requirement.
 Sick leave entitles an employee to claim payment of wages
for up to 6 weeks.
 To collect sick leave, the employee should have at least 4
weeks of service with the employer prior to falling ill.
 The worker shall be entitled to 100% of his/her average income.
 When personal reasons prevent an employee from working
for a short period, wages may be claimed.
 Such reasons include: death, birth or funeral.
 Any gender employee may take a child raising leave,
without pay, until the child turns 4.
 This leave cannot be combined with the maternity leave.
(http://www.ilo.org)
 Germany does not have a statutory minimum wage.
Nevertheless, collective agreements set a minimum wage
for different industries/positions.
 The employment contract determines the pay and this
amount cannot be less than the minimum wage set forth by
the applicable collective agreement. (http://www.ilo.org)

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German Labor Laws

  • 1.
  • 2.  All employees should have a written employment contract identifying major aspects of the employment relationship. The contract should also include items such as parties involved, gross salary and benefits, required work, vacation entitlement, start date, location of performance, and notice periods.  Although employers and employees may create limited term contracts, employment contracts are assumed to be for an unlimited time period (unless otherwise specified).  Probationary periods are permitted for up to 6 months. Probation times require a notice that at least 2 weeks must be granted to any employees to be terminated. (http://www.ilo.org)
  • 3.  Termination notices require a minimum of four weeks. (This is distinct from the requirement of notification for termination during probation period).  The longer an employee has been with a company, the more advance notice of termination is required. With a minimum statutory requirement of 4 months, one month of required notification time shall be added as an employee completes the 5th, 8th, 10th, 12th and 15th years with the same employer.
  • 4.  In Germany, the law distinguishes between Ordinary Termination (with notice) and Extraordinary Termination (without notice).  For Ordinary Termination, expiration of the period of notification will conclude the employment relationship.  With Extraordinary Termination, termination notifies immediately ends the employment contract.  Extraordinary Termination usually occurs with instances of serious misconduct. Termination must occur within a two week period from the moment the notifying party becomes aware of the information critical to the termination.
  • 5.  Extraordinary Termination is legally permissible when there is significant reason making it inappropriate to continue the employment contract until the end of the notice period.  For fixed contracts, extraordinary termination will terminate the contract immediately dissolving the obligation to continue employment through the expiration stipulated in the contract.  Seven months is the maximum period of termination notification required for any employee and is reserved for those who have completed 20 years of service.  Any years of service for the same employer prior to the employee’s 25th birthday will not be taken into account when calculating the entitlement of termination notice. (http://www.ilo.org)
  • 6.  German law sets 48 hours as the normal work week with 8 hours per day.  In certain cases of collective agreement however, the employee work week may be reduced to anywhere between 35 to 38.5 hours.  Expecting or nursing mothers may not work more than 8 hours a day.
  • 7.  Likewise, employees/trainees under the age of 18 may not work more than 8 hours a day.  Excluding those under 18 and nursing/pregnant women, employees may have the work day extended up to 10 hours, provided that the average amount of hours per day remains at 8 for the following 6 months . (http://www.ilo.org)
  • 8.  Female employees are entitled to maternity leave all throughout the pregnancy and up to 4 months after the birth of the child. During this time, the employee is protected from dismissal, with or without notice.  The female employee may not work for the employer, for any reason, for the period of 6 weeks before birth until 8 weeks following birth.  In the event of multiple or premature births, the female employee may not work for the employer for 12 weeks after the birth.
  • 9.  During maternity leave, the female employee receives a maternity allowance paid from a health insurance fund and supplement provided by the employer.  If, per doctor’s orders, the pregnant employee must completely or partly cease working to avoid a risk to herself or the unborn child, the employer is obligated to partly/fully release her from work obligations. In addition, the female employee will receive a maternity wage equaling her previous salary/wage.
  • 10.  When an employer is alerted of a pregnant employee, the work tasks and work site must be structured in such a way as to favor the pregnant/nursing worker. The pregnant/nursing employee cannot be required to do any heavy lifting or interact with dangerous materials.  The employer is liable for any violation to this requirement.  Sick leave entitles an employee to claim payment of wages for up to 6 weeks.  To collect sick leave, the employee should have at least 4 weeks of service with the employer prior to falling ill.  The worker shall be entitled to 100% of his/her average income.
  • 11.  When personal reasons prevent an employee from working for a short period, wages may be claimed.  Such reasons include: death, birth or funeral.  Any gender employee may take a child raising leave, without pay, until the child turns 4.  This leave cannot be combined with the maternity leave. (http://www.ilo.org)
  • 12.  Germany does not have a statutory minimum wage. Nevertheless, collective agreements set a minimum wage for different industries/positions.  The employment contract determines the pay and this amount cannot be less than the minimum wage set forth by the applicable collective agreement. (http://www.ilo.org)