Employment Law in Germany

Part of the employment law cluster in the employment knowledge graph — connected to occupations, documents, hiring guides, career guides, country guides and employment law.

How employment law works in Germany

Employment law in Germany is shaped by a layered system of statutes, collective agreements negotiated by unions and employers, and arrangements with works councils at company level. Court decisions also play an important role in interpreting these rules.

Employees generally enjoy strong protections, particularly around the ending of employment, and many terms are influenced by collective agreements that apply to a sector or company. The individual contract of employment sets out the specifics for each role.

Because several layers can apply at once, the same job may be governed by statute, a collective agreement and works-council arrangements together. Identifying which of these apply is the practical starting point.

Key concepts to understand

• The written contract of employment and any applicable collective agreement.
• Working time, rest periods and how hours are organised.
• Holiday entitlement and various forms of statutory leave.
• Protection around dismissal and the ending of employment.
• The role of works councils in company decisions affecting staff.
• Equal treatment and protection from discrimination.
• Occupational health and safety duties.
• Work and residence authorisation for non-EU nationals.

How the employment relationship is formed and governed

• A relationship usually begins with an offer and a written contract of employment.
• Statute, collective agreements and works-council arrangements may all govern the terms.
• Where a works council exists, it can have a say in certain workplace matters.
• Employers confirm that non-EU nationals hold the necessary permission to work.
• Company policies and the contract shape day-to-day expectations and procedures.

Authorities and where to confirm the detail

The Bundesministerium für Arbeit und Soziales (BMAS) is the federal ministry responsible for labour and social affairs, and the official Make it in Germany portal provides guidance for international workers, including on coming to work in the country.

Because several layers of rules can apply and they change over time, employers and employees should confirm the current position with the relevant authority or a qualified adviser rather than relying on a general summary.

Practical points for employers and employees

• Check whether a collective agreement applies to the sector or company.
• Find out whether a works council is involved in relevant decisions.
• Put individual terms in a clear written contract of employment.
• Confirm work and residence permissions for non-EU nationals.
• Use official sources to confirm current entitlements and procedures.