Employment in Germany

The German employment legislation

The German Civil Law establishes citizens may choose freely their occupation and forced labor is prohibited. The Civil Law also enables the principle of equal treatment. However, there are also employment legal frameworks regulating different types of work relations. Among these, the most important are:

• - the Work Constitution Act of 1988,
• - the Act on Collective Agreements of 1969,
• - the Employment Promotion Act,
• - the Employment Protection Act,
• - the Act on the Commercial Transfer of Employees.

Other than these, there are also specific employment regulations addressing matters like salaries, dismissals, wages on public holidays and sickness. The employment legislation also provides specific regulations for German companies employing individuals. Because Germany is an EU member state, its employment legislation strongly relies on EU directives on employment.

The contract of employment in Germany

No one can enter a work relationship without an employment contract in Germany. All German companies must draft employment contracts when hiring individuals. Usually employment contracts are concluded for an unlimited period of time, according to the Civil Code. However, German companies may also agree with their employees to conclude fixed-term employment contracts. Fixed-term contracts fall under the regulations of the Act on Part-Time Work and Fixed-Term Employment Relationships. No matter the type of employment contract, the employer must include the following information:

• - the start date,
• - the place where the work will be conducted,
• - the position and the role of the employee,
• - the remuneration,
• - the holiday the employee is entitled to,
• - the notice period.

Fixed-term employment contract must also contain the end date. Our experts in company formation in Germany may provide you with information about drafting employment contracts. Our team of specialists in setting up companies in Germany is ready to assist businesses also in some employment matters.

Protection of employees in Germany

The German employment law is very specific about the protection of employees. German companies are required to protect their employees against discrimination and harassment, to provide them a minimum holiday of 24 days within a calendar year and time off if they are unable to fulfill their duties. German employees are also entitled to be paid for the work they render and protection against dismissal.

For complete information about the both employers and employees’ rights, please contact our specialists in company formation in Germany. For support and assistance when setting up a company in Germany, our experts are at your disposal.