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Germany At a Glance
Germany At a Glance
Germany At a Glance
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Country Information
Easily navigate Germany Employment Landscape
Easily navigate Germany Employment Landscape
Easily navigate Germany Employment Landscape
Everything you need to know about working in Germany, explained in one place. Our resources give you clear, practical guidance on German employment basics—from key employee rights and the essential terms employers must provide under the Verification Act (Nachweisgesetz), to payroll and taxation (including Germany’s mandatory social insurance system).
Weekly Working Hours
National Holidays
Leave
Types of Employment
Employment Costs
IC Class Factors
Labor Leasing
Minimum Wage
Medical Benefits
Probationary Periods
Termination Notice
Severance
Understanding Weekly Working Hours in Germany
Explore Work hours Employee rights in Germany
Explore Work hours Employee rights in Germany
Explore Work hours Employee rights in Germany
In Germany, working hours are regulated to protect employee health and ensure fair labour standards. The standard working time is up to 8 hours per day, which may be extended to 10 hours provided that the average working time does not exceed 8 hours per day over a six-month or 24-week reference period. This typically results in a maximum average workweek of 40 hours.
Any hours worked beyond the standard daily limit are treated as overtime. While German law does not mandate a single statutory overtime premium, additional pay or compensatory time off is commonly required under collective bargaining agreements or individual employment contracts.
Work performed on Sundays and public holidays is generally prohibited, with limited sector-specific exceptions (such as healthcare, hospitality, and essential services). Where Sunday or holiday work is permitted, employees are usually entitled to substitute rest days and, in many cases, premium pay under collective agreements.
Public Holidays and Employee Leave in Germany
Overview of Public Holidays & Employee leave
Overview of Public Holidays & Employee leave
Overview of Public Holidays & Employee leave
In Germany, working hours are governed by the Arbeitszeitgesetz, which is designed to protect employee health and ensure fair labour conditions. Employees may work up to 8 hours per day, with the option to extend to 10 hours as long as the average daily working time remains 8 hours over a reference period of six months or 24 weeks. In practice, this results in an average maximum workweek of around 40 hours.
Hours exceeding the standard daily limit are considered overtime. While German law does not impose a universal statutory overtime premium, additional pay or time off in lieu is commonly required under collective bargaining agreements or individual employment contracts.
Work on Sundays and public holidays is generally restricted, except for specific sectors such as healthcare, transport, hospitality, and essential services. Where such work is permitted, employees are entitled to compensatory rest days and, in many cases, supplementary pay under applicable collective agreements.
Understanding Weekly Working Hours in Germany
Explore Employment Contracts & Costs in Germany
Explore Employment Contracts & Costs in Germany
Explore Employment Contracts & Costs in Germany
In Germany, employment relationships are governed by a well-defined legal framework that sets out clear rights for employees and obligations for employers. The default form of employment is an open-ended (indefinite) contract, and employers must register employees with tax authorities and the statutory social security system from the start of employment. Under the Nachweisgesetz, employers are required to provide written confirmation of key employment terms, including job duties, pay, working hours, notice periods, and benefits.
Types Of Employment
German labour law recognises several employment arrangements, including:
Permanent employees (open-ended contracts)
Fixed-term employees, permitted only under specific legal conditions
Part-time employees
Temporary or agency workers, hired through licensed staffing agencies
Independent contractors, engaged under civil or commercial agreements and not covered by standard employment protections
Correct worker classification is critical, as misclassification can result in back payments of social contributions, tax liabilities, and legal penalties.
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ICC classifications, labor leasing, and wage rules in Germany
Labor Regulations & Independent Contractor Classification in Germany
Labor Regulations & Independent Contractor Classification in Germany
Labor Regulations & Independent Contractor Classification in Germany
In Germany, the distinction between an independent contractor (Freelancer) and an employee is primarily determined by the level of personal dependence and integration into the company (Scheinselbstständigkeit risk). If a contractor works under employer control, follows fixed schedules, is economically dependent on one client, or is embedded in the company’s organisational structure, authorities may reclassify the relationship as employment.
Labor Leasing
In Germany, labour leasing (Arbeitnehmerüberlassung) is strictly regulated under the Arbeitnehmerüberlassungsgesetz. Only licensed temporary staffing agencies may legally supply workers to client companies.
Key requirements include:
Equal pay and equal treatment for agency workers after a defined qualifying period
Maximum assignment durations, unless extended by collective agreement
Joint liability for compliance breaches between the agency and the host company
Non-compliance can result in fines, loss of licence, and automatic establishment of an employment relationship with the client company.
Minimum Wage Requirements
Germany enforces a statutory national minimum wage, known as the Mindestlohn. The minimum wage applies nationwide across all sectors and is reviewed regularly by the Minimum Wage Commission.
Employers must comply with the Mindestlohn regardless of contract type, working hours, or industry. Collective bargaining agreements may set higher minimum wages for specific sectors, qualifications, or regions, but they cannot fall below the statutory minimum.
How pay and health coverage apply during employee illness in Germany
Medical Benefits in Germany
Medical Benefits in Germany
Medical Benefits in Germany
In Germany, employee health protection is a key pillar of labour law, ensuring income security during periods of illness through a structured employer–insurance model. When an employee is unable to work due to a non-work-related illness or injury, the employer is legally required to continue paying the employee’s full salary for up to six weeks per illness, provided the employment relationship has lasted at least four weeks.
After this employer-paid period ends, income support is taken over by the statutory health insurance system, which pays sickness benefits (Krankengeld) amounting to approximately 70% of gross salary (up to legal caps) for a maximum of 78 weeks within a three-year period for the same illness.
For work-related accidents or occupational diseases, medical treatment and wage replacement are covered by Germany’s statutory accident insurance system, financed by employers and administered through professional accident insurance funds.
During certified sick leave, the employment relationship remains in force, and employees benefit from strong dismissal protection, ensuring job security during recovery except in exceptional, non-illness-related circumstances.
Key rules governing probation duration and employer notice requirements.
Probationary Periods & Termination Notice in Germany
Probationary Periods & Termination Notice in Germany
Probationary Periods & Termination Notice in Germany
Probation Period in Germany
In Germany, employment contracts commonly include a probationary period (Probezeit) of up to 6 months, which applies to both blue-collar and white-collar employees. The probation period allows both the employer and the employee to assess suitability for the role.
During the probation period:
Either party may terminate the employment without severance pay
A shortened statutory notice period of 2 weeks applies
Termination does not require justification, provided it is not discriminatory or abusive
The probation period must be clearly stated in the employment contract. Collective agreements or individual contracts may shorten the probation period, but they cannot extend it beyond 6 months.
Termination Notice Periods After Probation in Germany
Once the probation period ends, statutory notice periods apply and increase with the employee’s length of service. For terminations initiated by the employer, minimum notice periods are:
Up to 2 years of service: 4 weeks, effective either on the 15th or the end of a calendar month
2–5 years: 1 month, end of month
5–8 years: 2 months, end of month
8–10 years: 3 months, end of month
10–12 years: 4 months, end of month
12–15 years: 5 months, end of month
15–20 years: 6 months, end of month
20+ years: 7 months, end of month
Employees resigning from a position are generally required to give 4 weeks’ notice, unless a longer period is agreed in the contract or collective agreement.
How termination compensation and background screening are regulated under Germany labor law
Severance Pay & Pre-Hire Checks in Germany
Severance Pay & Pre-Hire Checks in Germany
Severance Pay & Pre-Hire Checks in Germany
In Germany, severance pay (Abfindung) is not automatically guaranteed by law and is not accrued through monthly employer contributions. Instead, severance is typically negotiated at the time of termination or arises in specific legal situations—such as dismissals for operational reasons, court settlements, or social plans.
When severance is granted, a common reference formula used in practice is approximately half a month’s gross salary per year of service, though the actual amount may vary based on negotiation, seniority, age, and litigation risk. In addition to any severance payment, employers must settle salary during the notice period, unused vacation, and other accrued contractual benefits.
Certain sectors or collective agreements may establish binding severance arrangements, but there is no universal statutory severance entitlement under German law.
Background Checks and Data Protection in Germany
During recruitment, employers in Germany may conduct limited background checks, such as reviewing publicly available professional information (e.g., CV details or business-oriented social media profiles), only where relevant to the role.
All data processing must comply with the EU General Data Protection Regulation (GDPR) and Germany’s Federal Data Protection Act (BDSG). This means:
Personal data must be collected lawfully and transparently
Checks must be proportionate and job-related
Discriminatory or excessive screening is prohibited
This framework ensures legal certainty, fair termination practices, and strong privacy protection, reflecting Germany’s balanced approach to employee rights and employer obligations.
