Source: DGB – Bundesvorstand5.1 Employment contract (Arbeitsvertrag)
You can have a valid employment contract even without a written employment contract!
Usually, a written employment contract is signed before an employment relationship begins. However, an employment relationship can also be agreed orally; at the latest, however, after one month of employment, the essential terms of the contract must be set down in writing, signed by the employer and handed over to the employee.
An oral employment contract is generally valid. However, the employer must in any case give you information about the job, for example, what the job is, how many hours per day you are to work and what your wage is. You have the right to a written confirmation (“proof”) of your working conditions.
Tip: Always ask for a written employment contract! Ask for a copy of the signed contract!
An employment contract must state the following:
Name and address of the employer as well as your name and address
Start and duration of employment
Type of work and description of your duties
Place of work
Amount of pay (usually the gross wage)
Working hours
Holidays
Deadlines for terminating the employment relationship
References to applicable collective agreements or other agreements applicable to the employment relationship.
Often other points are regulated in an employment contract. There is no obligation for the employer to translate the employment contract into your native language or into English.
Tip: Do not sign anything you do not understand! If you do not understand the employment contract, find someone to translate or explain it to you!
5.2 Collective agreement (Tarifvertrag)
A collective agreement is an agreement between an employer or an employers’ association and a trade union (collective bargaining parties). Among other things, a collective agreement regulates working conditions and pay for a company or a whole industry. The terms and conditions set out in a collective agreement initially apply only to the members of the union in a company or in a specific industry. Only if the company is also a member of the employers’ association. Some collective agreements are declared generally binding by the Federal Ministry of Labour and Social Affairs at the request of the parties to the agreement. Then these collective agreements apply state-wide or nation-wide to all workers in a sector or industry, regardless of whether they are members of a trade union or not. In these cases, the collective agreement is mandatory and applies like a law. The employer must abide by the terms of the collective agreement and nothing less favourable may be agreed.
A collective agreement can also apply if it is referred to in an employment contract. This means that the employment contract states that a certain collective agreement applies to this employment relationship.
Tip: In Germany, trade union responsibilities are divided by industry or sector. Check with the trade union responsible for your industry to see if there is a collective agreement for your area of work. You can get an overview of the collective agreements that have been declared generally binding in Germany on the website of the Federal Ministry of Labour and Social Affairs see “Allgemeinverbindliche Tarifverträge”.
5.3 Probationary period (Probezeit)
The employer can agree a probationary period of a maximum of 6 months with you at the beginning of an employment relationship.
The probationary period means that employees and employers who are not satisfied with the employment relationship can end the employment relationship earlier.
For this reason, shorter notice periods apply during the probationary period, usually 2 weeks. A different, shorter notice period during the probationary period may be regulated in a collective agreement. The probationary period must be regularly remunerated.
The probationary period must be distinguished from so-called “trial work”. Trial work can be carried out before the employment contract is concluded and may only last a maximum of a few days. This is to make a decision on whether you can work together. Trial work does not have to be remunerated.
Attention! If you are assigned like other employees, receive instructions from your supervisor and perform work, this is not trial work but an employment relationship that must be remunerated.
5.4 Fixed term (Befristung)
Your employment contract can only be limited in time under certain conditions.
If the employer only wants to employ you until a certain date, s*he will conclude a fixed-term contract with you.
A fixed-term employment contract must always be in writing. If you only have a verbal employment contract, you are automatically employed for an indefinite period.
Important: The fixed-term employment contract must be signed by both parties before starting work. After starting work without a written fixed-term contract, an unlimited employment relationship is automatically established.
The fixed-term contract can be concluded either with a reason (e.g., project fixed-term, replacement due to illness) or without a reason.
If the employment contract is limited without a reason, it can be concluded for a maximum of 2 years. Within these 2 years, the employment contract may be extended a maximum of three times. In the case of a newly established enterprise, the employment contract may be limited for a maximum of 4 years. A fixed-term contract without a reason is not permitted if an employment relationship has already existed with the same employer.
Tip: If your employer signs a fixed-term contract with you without a reason after 2 years, you can defend yourself against it. After the expiry of the contract, you can file a complaint with the labour court to have your contract terminated. You must file the action with the labour court within three weeks of the agreed end of the fixed-term employment contract at the latest.
If you have any questions about your fixed-term contract, contact your trade union.
5.5 Remuneration (Bezahlung)
The principle applies: No work without pay!
Important: Even without working papers and a written employment contract, the employer is obliged to pay you your wages! Do not let your employer intimidate or force you to work without pay. You have a right to be paid for your work!
Info: The term Entgelt (remuneration) is the formal term for the payment of work by the employer. This is why it is often written on your monthly pay slip. The terms Lohn (wage) or Gehalt (salary) are often used instead of Entgelt. This booklet mostly refers to Lohn (wages).
Wages are usually paid into your bank account. Your employment contract will usually state when this happens. If nothing is regulated, the legal regulation applies, according to which the wage is to be paid on the first working day of the following month. A special rule applies to the statutory minimum wage: The minimum wage must be paid on the last bank working day of the following month at the latest.
Your employer must give you a pay slip every month unless your wage has not changed from the last pay slip. This payslip shows how much you have earned and what amounts have been deducted in taxes and insurance contributions.
As a general rule, you must be paid for every hour you work. An exception is if you are not yet employed and agree with a company to do trial work for free.
Tip: Make a note of the hours you work! Ask your employer for your pay slips if you do not receive them automatically! Check in good time whether you have received your full wage!
5.5.1 Info: Gross Wage / Net Wage (Bruttolohn / Nettolohn)
In Germany, a distinction is made between gross and net wages: The gross wage is usually the salary agreed in the employment contract. Both gross and net wages are listed on the pay slip. Various amounts are deducted from the gross wage:
Income tax (Einkommenssteuer)
Church tax (Kirchensteuer) (if you belong to a church that levies this tax).
Social security contributions: Pension insurance, unemployment insurance, health insurance, long-term care insurance (Sozialversicherungsbeiträge: Rentenversicherung, Arbeitslosenversicherung, Krankenversicherung, Pflegeversicherung)
The net wage is the wage paid at the end after deduction of all duties and taxes.
5.5.2 Minimum wages
You may not receive less than the minimum wage!
In Germany, a statutory minimum wage per hour applies to all workers. From 1 July 2021, the minimum wage is 9.60 EUR per hour.
Exceptions apply to persons under 18 years of age who have not completed vocational training, to apprentices and long-term unemployed persons in the first 6 months after resuming work and to certain types of internships, e.g., introductory qualifications in preparation for vocational training.
In addition to the statutory minimum wage, in certain sectors there are generally binding collectively agreed minimum wages that generally take precedence over the statutory minimum wage. These are higher than the statutory minimum wage. These sectors include, e.g., the construction industry, building cleaning, the electrical crafts work and care work.
Tip: It is best to ask a trade union which minimum wage applies to you! You can find a list of current industry minimum wages on the website of the Hans-Böckler-Foundation see “Mindestlöhne in Deutschland”.
Attention: Often the employer makes the payment dependent on specifications that you have to fulfil. This is not always allowed.
Have your employment contract checked by your trade union or an advice centre! Your wage must not be lower than the minimum wage applicable in each case!
Example: If you clean rooms in a hotel, e.g., the employer often determines how many rooms you have to clean in an hour. The employer may not reduce your wage below the minimum wage. If there are problems write down your working hours and save evidence! The employer must pay you for every hour you worked for them, regardless of how many rooms you cleaned.
5.6 If the employer does not pay
You can take action if you do not receive your wages!
You always have a right to your wages – even if you have been dismissed or do not have a written employment contract. You must claim wages that have not been paid yourself (preferably with the help of a lawyer or trade union) and, if in doubt, sue for them. Neither the police nor other state institutions are responsible for this. First of all, demand the outstanding wages in writing from your employer. This may save you from having to go to court.
To do this, write a letter to your employer which must contain the following:
list of how many hours you worked for him*her, when, where and as what.
The exact amount of wages your employer owes you.
Set a deadline for payment of 2 weeks.
Give the details of the bank account into which the missing wages should be transferred.
Important: You must sign the letter and send it to the employer by postal mail (preferably as registered mail (Einschreiben Einwurf). Alternatively, a person you trust can deliver the letter to the employer for you. A verbal demand for payment is not sufficient. Keep a copy of the letter and the postal receipt so that you can document that you sent the letter. After receiving the letter, the employer has 2 weeks to pay the missing wage. If s*he does not meet your demands within the time limit you have given him*her, you can take him*her to labour court (Arbeitsgericht).
Remember that exclusion periods may have been agreed in your employment contract or collective agreement. These stipulate that you must claim your rights from the employer within a certain period of time. If you do not do so in time, your claim will expire. These preclusion periods apply to all claims arising from the employment relationship, not only to wages (e.g., also to references).
Caution: These deadlines can be very short! There may be a second deadline after which you have to sue for the wage at the labour court. Be sure to get advice on this so that you do not lose any claims.
Again, there is a special feature for the statutory minimum wage: the statutory minimum wage can be claimed retroactively for 3 years, irrespective of existing preclusion periods.
Tip: If you are a member of a trade union, you can get support from trade union lawyers in legal disputes with your employer. It is best to contact your union or a counselling centre as soon as you notice that your employer is not paying.
Important: Record your working hours, break times, place of work and completed tasks in a notebook every day. Write down the name and address of the employer, the company you work for or the client, as well as the names of colleagues who can testify to the work you have done. The more information and evidence you have, the better your chances of getting paid by the employer.
In many industries, such as construction or food, you work for an employer who has a contract with another employer. Collect information and receipts about your employer’s client, as you may also be able to claim your wages from your employer’s client.
Caution: Do not wait too long! There are time limits that determine how long you can claim your wages from your employer or in court. If the time limits expire, you will have little chance of receiving your wages.
5.7 Working hours (Arbeitszeit)
How long a working day can be is regulated by law!
In Germany, the maximum number of hours you may work per day and week is regulated by law. Your working hours may not exceed 8 hours per working day. The working time may only be extended to a maximum of 10 hours if the working time does not exceed 8 hours per day on average over 24 weeks or 6 months. However, there may be exceptions for certain professions or industries.
Important: In the construction industry there is a generally binding collective agreement that regulates different working hours for winter and summer. In the months of December to March, the working time is 38 hours per week. In the months of April to November, working hours are 41 hours per week. Different working time rules also apply in agriculture. Check with your trade union to find out what working time rules apply in your sector.
In principle, every hour during which you are available to the employer counts as working time.
Overtime must be ordered by the employer and must always be paid. You must take rest breaks: At least 30 minutes if you work more than 6 hours and 45 minutes if you work more than 9 hours. You have a right to these breaks!
Tip: Write down your working hours and breaks every day and have the document signed by your supervisor or another person who can witness your work!
In cases where the employer wants to use you according to the workload, s*he can make an agreement with you to work on call. A certain number of hours per day and per week must be specified in the contract. If it is not written in your employment contract how many hours you are supposed to work, 20 hours per week and 3 hours per day are regarded as notionally agreed. You must be paid even if there is no work for you. The work must be announced at least four days before the assignment. If this deadline is not met, you are not obliged to accept the assignment. You still retain your right to be paid for the agreed or notional working hours.
5.8 Health insurance (Krankenversicherung)
You are covered by health insurance through work!
If you take up a job, you are compulsorily insured under the statutory health insurance scheme. This does not apply to mini-jobs. In Germany, health insurance covers the costs of medical treatment. You must present your health insurance card when you visit a doctor. You get your health insurance card from your health insurance company.
5.9 Illness
If you are ill, you still have to be paid!
If you have worked for an employer for more than 4 weeks, you will receive your full wage for up to 6 weeks if you are ill. In principle, your employer must pay you exactly the wage you would have earned if you had not been ill (including supplements). If you become ill during the first 4 weeks of your employment, you will receive a replacement benefit from the health insurance fund (“sick pay”).
In addition, the following applies in principle: If you are ill for more than 6 weeks at a time, you will not receive a salary from your employer, but sickness benefit from the health insurance fund. To do this, you must submit a “certificate of incapacity for work” (called Krankschreibung (a sick note or “yellow slip” – Gelber Schein) to your employer and the health insurance fund, which your doctor will issue to you.
Important: You must inform your employer immediately of your inability to work and its expected duration. If you are ill for more than 3 days and cannot work, the medical Arbeitsunfähigkeitsbescheinigung (certificate of incapacity for work) must be submitted to the employer at the latest on the working day following the first 3 days of incapacity for work. However, the employer can demand the submission of the certificate of incapacity for work earlier, even from the 1st day of illness, without giving reasons.
Tip: Check your employment contract to see what it says about how you have to report sick! If in doubt, ask your employer.
5.10 Accident at work and accident insurance (Arbeitsunfall und Unfallversicherung)
An accident at work must be reported!
Every employee is insured against accidents that happen on the way to or from work and during work through the Institution for Statutory Accident Insurance and Prevention trade association (Berufsgenossenschaft) or Statutory Accident Insurance (Unfallkasse). Your employer must register you with the Berufsgenossenschaft when you start work. The Berufsgenossenschaft pays you compensation for your wages (Verletztengeld – injury benefit) if you cannot work for more than 6 weeks because of an accident at work. Your employer must continue to pay your wages for the first 6 weeks unless your employment relationship has not yet lasted for 4 weeks. In this case, you will also receive injury benefits.
Tip: If you have an accident at work, you must tell the doctor that the accident happened at work. It is important that this is recorded.
Caution: If your employer advises you to say that it was not an accident at work, s*he probably did not insure you. Go to your trade union or a counselling centre and get advice. If you do not speak enough German, ask the hospital to have someone translate for you.
Statutory accident insurance only covers part of the consequences of an accident. For this reason, you can consider taking out private supplementary accident insurance. Private accident insurance usually also covers high costs for additional or special therapies (rehabilitation services, cosmetic operations) and helps you with the agreed disability benefit, especially in the case of severe consequences of an accident.
The benefits of a private accident insurance are granted independently of the benefits from the statutory accident insurance, there is no mutual offsetting.
5.11 Paid holiday (Urlaub)
You are entitled to at least 4 weeks paid holiday per year!
In Germany, a minimum annual leave of 24 working days applies for a 6-day working week and 20 working days per year for a 5-day working week. Your employer must grant you this leave! This also applies if you have a so-called mini-job. A longer holiday can also be agreed in the employment contract, but not a shorter one. Collective agreements often stipulate higher holiday entitlements.
Tip: Here’s how you can calculate the minimum amount of holidays you are entitled to under the law if you work part-time: Number of your average working days per week times 24 (holiday entitlement for 6 working days) divided by 6.
Important: If you work 5 days a week, you are entitled to at least 20 days of holidays, even if you only work a total of 10 hours a week. However, if you work the 10 hours 2 days a week, you are entitled to at least 8 days of holidays a year: 2 (working days) times 20 (holiday entitlement in working days) divided by 5 (= usual working days, Monday to Friday).
You must apply for your holidays to your employer, who can approve or reject the holiday. Do this in writing and keep a copy. The holidays expire at the end of the calendar year if they are not taken. If the holiday could not be taken in the current year for urgent operational or personal reasons, you must use it up by 31 March of the following year at the latest. The right to paid annual holidays usually only expires at the end of the calendar year if the employer has informed the employee that he/she should take the holiday by the end of the year. If the employee still does not do this, the holiday days can no longer be taken retroactively.
Important: You are entitled to full holidays if you leave the employment relationship in the second half of the year and have been employed for at least 6 months! If the employment relationship ends and you have not yet taken all your holidays, the employer must pay out the remaining holiday days.
Attention: Deadlines also run here to claim this money! Often these deadlines are very short, so contact your trade union or an advice centre quickly if your employer does not want to pay holiday.
5.12 Notice of termination (Kündigung)
For a notice of termination, deadlines must be observed!
As a rule, an employment relationship cannot be terminated immediately. The usual notice period is 4 weeks to the 15th of the month or to the end of the month. If the employment relationship has existed for more than 2 years, the notice period is extended for the employer. During the probationary period, this period is usually shorter. The period of notice for terminating your employment is often stated in your employment contract or the collective agreement that applies to you.
Both the employer and the employee can only terminate the employment contract without notice if there is an important reason for doing so. This reason must be so serious that continuing the employment relationship until the end of the regular notice period would not be reasonable under any circumstances. In case of doubt, the court must examine this reason.
Important: The notice of termination must be in writing. A verbal notice of termination, a copy of a termination, or a notice of termination by e-mail, SMS or fax are not valid!
If you have been employed for longer than 6 months and there are more than 10 employees in the company, the Dismissal Protection Act applies. In this case, the employment relationship may only be terminated for operational, behavioural, or personal reasons.
Operational reasons are when the company can no longer employ you because of the economic situation, e.g., because it has lost important orders.
Personal reasons exist if the employee will not be able to fulfil his/her contractual duties in the future due to his/her personal characteristics, e.g., permanent illness without a positive prognosis.
Behavioural reasons exist if the employee’s behaviour gives reason for complaint, e.g., theft in the workplace or repeated unexcused absences (after a warning).
The employer does not have to state reasons for the termination of the employment relationship in the notice of termination.
Pregnant women and people with disabilities have special protection against dismissal!
Women cannot be dismissed during pregnancy and until the end of the 4th month after childbirth. However, the employer must know about the pregnancy or be informed of it within 14 days of receiving the notice of termination at the latest.
Severely disabled employees, e.g., employees with a degree of disability of at least 50 per cent, also have special protection against dismissal from the 7th month of employment. This means that the employer may only terminate the employment if the competent integration office has approved the termination.
If you receive a dismissal and do not agree with it, you can defend yourself against it. Even if you were given a verbal notice of dismissal or were merely told not to come to work, you should do something about it. A dismissal that is only communicated to you verbally is invalid. However, continue to offer your labour! Do this in person at the usual start of your working day. If the employer then sends you home, get written confirmation that the employer is releasing you “with continued pay” (that is, confirming that they will continue to pay you your wages without requiring you to show up for work). You can have a court determine whether the dismissal is effective or not.
Important: If you want to defend yourself against a dismissal, you must file an action for protection against dismissal before the labour court within 3 weeks. If you let this period expire, the dismissal is effective, regardless of whether its content is correct or incorrect.
The three-week period begins with the receipt of the notice of termination, i.e., the day it is handed over in the office or the day it is posted in your letterbox.
The period is very easy to calculate: The expiry is on the same weekday in three weeks on which you received the notice. So: handing over the notice at your workplace on Friday = expiry will be on Friday in three weeks. If the 3-week period ends on a Saturday, Sunday or public holiday, the period expires on the working day that follows Sunday.
Tip: Visit your trade union or a counselling centre as soon as possible if you have received a dismissal from your employer that you do not want to accept. You can also file a complaint in court yourself. Every labour court has a legal application office. Your complaint will be taken up there free of charge. If you do not speak enough German, you should take someone with you to translate. You can also go to a lawyer. If you have a low income, there is the possibility of applying for legal aid. This means that the court will pay the costs of the lawyer. You can get information about this at an advice centre, for example here or here.
Important: After you have received notice of termination, you must immediately report to the Employment Agency. Otherwise, your unemployment benefits may be reduced.
5.13 Termination agreement
A termination agreement (Aufhebungsvertrag) can have great disadvantages for you!
It is not uncommon for employers to want you to sign a so-called Aufhebungsvertrag in which you agree that your employment relationship will end at a certain point in time. This is different from giving notice. Be careful with these contracts: You risk having your unemployment benefits reduced if you agree. Sometimes it also says that you waive wage claims.
Tip: Don’t be fooled: An employer does not need your signature to dismiss you. Check whether it is a termination agreement! Do not sign anything you do not understand! If your employer presents you with such a termination agreement, do not sign anything, but take the termination agreement with you and get advice from your trade union on the legal consequences.