German Employment Law: Key Aspects and Benefits for Foreign Clients

At WW+KN, a Baker Tilly Company, we understand the complexities of German employment law and provide comprehensive legal support to ensure compliance and optimal operation for businesses. Collaborating closely with our specialized employment law attorneys within the Legal Department, we leverage our multidisciplinary expertise to offer holistic solutions. Here’s an overview of the key aspects of German employment law and the benefits of our multidisciplinary approach for foreign clients.

Key Aspects of German Employment Law

1. Working Hours and Overtime:

  • Standard Hours: The maximum working hours are regulated by the Working Hours Act (ArbZG), which stipulates that employees can work up to 8 hours per day, extendable to 10 hours if the average over six months does not exceed 8 hours per day.
  • Breaks and Rest Periods: Employees are entitled to a 30-minute break for shifts longer than 6 hours and a 45-minute break for shifts over 9 hours. Additionally, a minimum rest period of 11 hours between workdays is mandated.

2. Minimum Wage:

  • The Minimum Wage Act (MiLoG) sets the current minimum wage at €12 per hour. This applies to all employees, including part-time and temporary workers.

3. Employment Contracts:

  • Written Agreement: Employment contracts should be in writing, outlining essential details such as job description, salary, working hours, and termination notice periods.
  • Fixed-term Contracts: These must also be in writing and are subject to specific conditions and limitations under the Part-Time and Fixed-term Employment Act (TzBfG).

4. Leave Entitlements:

  • Annual Leave: Under the Federal Vacation Act (BUrlG), employees are entitled to a minimum of 24 vacation days per year based on a 6-day workweek, or 20 days for a 5-day workweek.
  • Sick Leave: The Continuation of Remuneration Act (EntgFG) ensures that employees receive their full salary for up to six weeks of illness, provided they have been employed for at least four weeks.

5. Termination Protection:

  • The Protection Against Dismissal Act (KSchG) applies to employees who have been with the company for more than six months and protects them from unjust dismissal, requiring specific reasons for termination such as misconduct, redundancy, or personal incapacity.

Benefits of a Multidisciplinary Approach

1. Comprehensive Legal Expertise:

  • Our collaboration with employment law attorneys ensures that all aspects of employment, from hiring to termination, are managed with a thorough understanding of the legal landscape.

2. Tailored Solutions for Foreign Clients:

  • We provide customized advice for foreign businesses operating in Germany, ensuring compliance with local laws and regulations. This includes guidance on cross-border employment, tax obligations, and setting up efficient payroll systems using tools like DATEV Arbeitnehmer Online.

3. Streamlined Processes and Compliance:

  • Leveraging our multidisciplinary capabilities, we streamline HR and payroll processes, ensuring accurate and timely management of employee records and payments. Our use of DATEV Arbeitnehmer Online enables employees to access their pay slips and tax documents conveniently and securely, enhancing transparency and reducing administrative burdens.

Our Recommendation

Navigating German employment law can be challenging, especially for foreign businesses. At WW+KN, a Baker Tilly Company, our multidisciplinary approach ensures that you receive expert legal advice and practical support tailored to your specific needs. For further assistance or to explore how we can support your business, feel free to contact us at info@payrollgermany.de.