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Written Agreements

Written contracts are not mandatory for beginning an indefinite employment relationship in Germany. However, a document with the work conditions must be put in writing, signed, and given to the employee no later than one month after the agreed-upon start date.

The written transcript must contain at least the following:

• Name and address of the employer
• Name and address of the employee
• Start date and, if it is a fixed-term contract, the end date or duration, as well
• Location(s) where work will take place
• Job type and brief job description
• Salary, incentives, and any other additional payments
• Work hours, annual leave, and notice periods for termination
• Reference to collective bargaining agreements and other agreements, if applicable

Employers and employees can include a non-competition clause in the contract to restrict the employee's professional activity for a maximum of two years after the employment relationship has ended by agreement. While employers can conclude non-solicitation agreements with other employers to stop them from hiring their employees, such agreements are not enforceable in court.

Oral Agreements

Indefinite employment contracts can be entered into orally or in writing. However, a document with the basic work conditions has to be written, signed, and given to the employee no later than one month after the agreed-upon start date. A fixed-term contract can also be entered into orally; however, the expiry date must be set out in writing.

Apprenticeship contracts must be in written form.

Implied Agreements

German law does not explicitly enumerate implied contracts. However, German civil law addresses obligations created without an explicit agreement by regulating unjust enrichment. Even without a concluded agreement, a party may find itself bound to act when it is unjustly enriched by the actions of another party. This dynamic can facilitate an implied agreement in the absence of an actual contract.

The Hours of Work Act regulates the working hours, which states that a regular, full-time workday may not exceed eight hours. There is a ten-hour limit, including overtime, as long as an eight-hour average is maintained over six calendar months. Employees must have an uninterrupted rest period of at least eleven hours after the end of daily working hours. Young people under 18 cannot be employed more than 8 hours a day and not more than 40 hours a week. They must have a daily rest of at least 12 hours.

These limits can be extended in emergencies when work cannot be postponed, in extraordinary circumstances, or if agreed upon in collective agreements.

In Germany, public holidays are predominantly regulated at the state level. The minimum number of paid public holidays is 9 – these are the national public holidays. In addition to the national holidays, state-specific public holidays are regulated by individual state laws.

All German employees are entitled to a public holiday for the following days:

• New Year’s Day (Neujahr) - January 1
• Good Friday (Karfreitag) - date subject to change annually
• Easter Sunday (Ostersonntag) - date subject to change annually
• Easter Monday (Ostermontag) - date subject to change annually
• Labor Day (Maifeiertag) - May 1
• Ascension Day (Christi Himmelfahrt) - date subject to change annually
• Whit Sunday (Mit Sonntag) - date subject to change annually
• Whit Monday (Pfingstmontag) - date subject to change annually
• German Unification Day (Tag der Deutschen Einheit) - October 3
• Christmas Day (Weihnachtstag) - December 25
• Boxing Day (Weihnachtstag) - December 26

The probationary period in Germany lasts up to a maximum of 6 months. During the probationary period, the employment relationship can be terminated by either party with 2 weeks' notice. The probationary period can be stipulated for both indefinite-term and fixed-term contracts.

Notice Period

Notice for an employer seeking to terminate an employment relationship ranges from four weeks for employees with less than two years of service to seven months for employees with more than 20 years of service. Notice must be given in writing. Termination without notice can only be given if there is good cause.

An employee may terminate the employment relationship with a notice period offour weeks to the fifteenth or the end of a calendar month. In case of termination during the probationary period, the notice period is two weeks. Collective bargaining agreements can provide for shorter notice periods.

Severance Benefits

In Germany, employees are entitled to severance pay under the following circumstances:

• Operational termination - if employees are dismissed due to operational issues, they are entitled to severance pay equal to 50% of their monthly salary for each year of employment.
• Termination of employment by the judgment of a court - if a court determines that dismissal was unfair and the employee cannot continue the employment relationship, the court may decide to dissolve the employment contract and order the payment of severance (up to 12 months earnings).
• Immoral or extraordinary dismissal - if the court decides that the dismissal is unfair or without reason, it can order the employer to pay an appropriate severance payment if the employee cannot continue the employment relationship.

Severance benefits may vary for employees covered under a works council social plan or collective agreement.

Minimum Wage

The government of Germany has increased the nationwide minimum wage to EUR 12.82 per hour from January 2025. Therefore, collective bargaining agreements with wages below EUR 12.82 are no longer permissible as of January 2025.

Sectoral minimum wages may be higher than the statutory minimum wage and are adjusted in accordance with the Basic Collective Agreements Act (Basis Tarifvertragsgesetz), the Posting of Workers Act (Arbeitnehmerentsendegesetz), and the Act on the Provision of Temporary Workers (Arbeitnehmerüberlassungsgesetz).

Overtime, Holiday & Vacation Pay

Overtime work must at least be compensated at the rate of the employee's regular wage. There are no explicit statutory provisions on rates for overtime; however, collective agreements often stipulate a premium of 10% to 20% of additional pay for overtime work. If agreed to in writing, overtime hours can be entered into a working time account, from which the employee can use the hours to take time off in lieu of pay. A provision in a collective agreement that entitles full-time workers to overtime bonuses also applies to part-time employees.

It is a mandatory requirement in Germany that work is not done on a public holiday. It is also a prerequisite for the payment of remuneration that the holiday is the sole cause of the loss of work. Employees who are absent from work without a valid excuse on a working day before or after a public holiday will not be entitled to any payment for these holidays.

Employees are entitled to full remuneration during their annual leave. If leave is not granted in whole or in part due to termination of employment, remuneration must be paid to the employee.

Visas

Persons who wish to travel to Germany will normally require a visa. Individuals can apply for a visa at any German diplomatic mission (Embassy or Consulate-General). Visas can be generally divided into two categories:

Short-term stays for up to 90 days (Schengen visa) - for stays of up to 90 days (e.g., most business or tourist trips, airport transit visas), individuals will generally need a visa valid throughout the Schengen territories.

Longer-term stays (National visa) - individuals planning a stay of more than 90 days or planning to work must apply to a German diplomatic mission.

Categories of long-term visas include the following:

• Studying & Language Learning Visa
• Business Visa
• Employment Seeking Visa
• Working Visa
• Guest Scientist Visa
• Training/Internship Visa
• Medical Treatment Visa
• Trade Fair & Exhibitions Visa

Work Permits

Citizens of the European Union, EEA, the United States of America, Australia, Canada, Israel, Japan, New Zealand, Switzerland, the United Kingdom of Great Britain and Northern Ireland, and the Republic of Korea can apply for their residence permit for work purposes after entering Germany without a visa. Citizens of other countries must apply for and obtain a visa for work purposes before entering the country. After the application has been approved by the Aliens’ Office and the Work Office, the Embassy will issue a residence permit in the form of a visa, including an authorization permitting work in Germany. There is no need for an extra work permit after arriving in Germany.

For Non-EU Nationals, there are three residence permits for work purposes:

• To seek employment as a skilled worker
• General employment
• Specialist professional
• Self-employed