Employee termination
in Germany.

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES German / English

PAYROLL TAX 20.66%

PAYROLL CYCLE Monthly

TIME TO HIRE 48 hours

Get Started

Horizons-owned entity with local country experts in Seoul.

We offer fair, scalable, and transparent pricing on South Korea PEO service. Contact us for a cost breakdown

End service in South Korea with no additional penalties or fees.

Including vision, dental, death & disability, travel, and more.

Hire and pay talents
with Horizons in
180+ countries

Get started

Germany

Valid reasons to terminate employment in Germany

In Germany, in the first 6 months of employment, a valid reason to terminate an employee is not needed. However if they have been employed longer than 6 months then termination needs to be either business related or individual related (like long term illness without foreseeable recovery, poor performance, and theft or fraud). If it is a business related termination it is likely that the employee will receive severance payment.

Unfair reasons to terminate employment in Germany

You cannot terminate an employee for unfair reasons after 6 months of employment. There must be either a business related issue or an individual related issue.

Dismissal procedure in Germany

In Germany, dismissal letters need to be presented and signed manually by both parties. There must be a written notice on paper. This means that email will not suffice.

Resignation procedure in Germany

In Germany, resignation letters need to be signed manually by both parties. This means that email will not suffice.

Hiring in Germany, Made Easy

Your business can easily hire employees in Germany without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

Is it difficult to terminate employment in Germany?

Because Germany does not offer at will termination options to employer, it can be difficult to terminate an employee in Germany. However, termination in Germany is not unreasonable. If you have a fair reason to terminate an employee then it is possible.

What are the risks of terminating employment in Germany, and how do I mitigate them?

If you are to terminate employment in Germany, then a legal reason for doing so (i.e. business or individual related) is highly recommended. In the case of an unfair termination in Germany there can be legal punishment and a higher severance payment due to that employee.

If an employer wants to terminate a protected class of employee (i.e. pregnant employee), then it is nearly impossible to do so.

You can mitigate termination risks by partnering with a firm like Horizons, who has employment experts on the ground in Germany and can advise you on best practices in cases of employment termination should you need to do it.

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO at MindLabs (UK)

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. They were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVP Software Development, PICS ITech (USA)

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director, Schaeffler Group (Germany)

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources, Devian Chemicals (Belgium)