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Labor law
in Germany.

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES German / English

PAYROLL TAX 20.66%

PAYROLL CYCLE Monthly

TIME TO HIRE 48 hours

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Germany

    Labor law in Germany – Overview

    Employer-employee relationships in Germany are governed by various labor laws. Some of the most important relate to probation periods, mandatory notice periods, terminations, and severance pay.

    Notice period laws in Germany

    Dismissals in Germany

    Employers must give the employee a certain amount of time to give them notice of dismissal. During a 3 month probationary periods, an employer must give the employee a minimum of 2 weeks dismissal notice. The longer the employee has been with the company, the longer the dismissal notice is. 

    If an employee wants to resign, during the probation period the employee must give employer a minimum of 2 weeks notice. After probation, this goes up to 4 weeks notice.

    Severance laws in Germany

    In Germany, once an employee has passed the 6 month mark, they are protected by termination protection legislation (Kundigungsschutzgestez), meaning that they are indeed entitled to a severance payment. The calculation is gross monthly salary * 0,5 * years of service.

    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

    The most relevant legal document related to employment law in Germany are Federal legislation, collective bargaining agreements, work council agreements and individual contracts.

    Yes you are allowed to terminate an employee during their probationary period. However, you must give them a minimum of two weeks notice in Germany

    Employees are allowed to terminate employment during their probationary periods. However, they too must give you two weeks notice In Germany.

    After the probationary period, notices will begin to increase. For example, after probation and before two years of employment, the notice period will increase to 1 month.

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