🇩🇪 Germany · Employment & Labor

Hiring rules, employment contracts, payroll, social insurance, and EOR options.

Quick answer

German employment law is strongly protective: a statutory minimum wage (Mindestlohn), at least 20 days' paid leave (usually more), and strong dismissal protection (Kündigungsschutz) for established employees. Works councils and collective agreements (Tarifverträge) shape conditions; disputes go to the labour courts (Arbeitsgericht).

Employment is governed by a body of labour law overseen by the Federal Ministry of Labour and Social Affairs (BMAS); a statutory minimum wage and mandatory social insurance apply.

  • A statutory minimum wage (Mindestlohn) applies to most employees.
  • Employers and employees share contributions to health, pension, unemployment and care insurance.
  • Dismissal protection applies in larger establishments after a qualifying period.

Step-by-step

  1. 1

    Get a written contract

    You should receive a written employment contract or a statement of essential terms; check pay, hours, notice and any collective agreement that applies.

  2. 2

    Know your pay and hours rights

    You must receive at least the statutory minimum wage (or the higher collectively-agreed rate); the Working Hours Act limits daily hours and requires rest.

  3. 3

    Understand leave and time off

    The Federal Leave Act guarantees at least 20 days’ paid leave on a five-day week (many contracts give 25-30), plus continued pay when sick.

  4. 4

    Register for social insurance

    You are enrolled in statutory health, pension, unemployment and care insurance, with contributions split between you and the employer.

  5. 5

    Know the dismissal-protection rules

    In larger firms, after six months' service the Dismissal Protection Act requires a socially-justified reason to dismiss you; notice periods increase with tenure.

  6. 6

    Resolve disputes at the labour court

    Consult the works council if there is one, and bring claims to the labour court (Arbeitsgericht).

Checklist

  • Written contract / essential terms + applicable Tarifvertrag
  • Minimum wage (or collectively-agreed rate)
  • Working-hours limits + rest
  • ≥20 days’ leave + continued sick pay
  • Social insurance (health/pension/unemployment/care)
  • Dismissal protection (after 6 months, larger firms) + notice
  • Works-council consultation where present
  • Dispute route (labour court / Arbeitsgericht)

Official authorities

Frequently asked questions

How much holiday am I entitled to?

The statutory minimum is 20 days on a five-day week, though most contracts and collective agreements give 25-30 days.

What is Kündigungsschutz?

Dismissal protection: in covered firms an employer generally needs a socially-justified reason (conduct, capability or operational) to dismiss an established employee.

What is a works council?

A Betriebsrat is an elected employee body that co-determines many workplace matters in larger companies.

Official-information aggregation, not legal advice. Always verify on the authority's own site.

Government portals

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