N2S provide expert solutions for businesses looking to expand or grow into Germany, including compliance, payroll management and employment support. Request our Services to find out more about how we can help you.
Navigating German employment legislation can be complex due to variations (including collective bargaining agreements) across industries. Employment agencies, like N2S, are legally required to hold a valid AUG licence to provide employment solutions to customers.
At N2S, we simplify compliance, making it clear and straightforward for our clients and customers to grow and excel in Germany.
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1. Onboarding in Germany can be straightforward for providers, like N2S, that have standard templates and processes.
2. Note that employment contracts must be in writing.
3. For employments, there is a statutory probationary period of up to 6 months, during which employers must give 2 weeks of notice to terminate the employment.
1. There are two core engagement types in Germany:
2. Customers should consider carefully how they wish to engage their workforce and N2S can support customers in implementing compliant and scalable solutions.
1. Customers should ensure that Independent Contractors (ICs) that they use are appropriately vetted and classified. This will help protect the business from misclassification claims.
2. Key considerations include the below, if you require further information or support, please contact us.
3. Contractors should be distinct from employees and be in business on their own account
4. The following elements should be considered when making a classification determination:
- Control
- Subcontracting
- Equipment
- Financial risk
- Management
- Contracts
- Opportunity for profit
1. Standard working hours in Germany are 8 hours per day and circa 40 hours per week.
2. The standard workweek is Monday to Friday.
3. There is not a general entitlement to overtime pay, but this is commonly negotiated.
1. In Germany, annual leave is up to 20 days per year for those working a 5-day week and 24 days for those working a 6-day week.
2. Sick pay rules require the employer to pay the first 6 weeks at 100% of normal salary. Thereafter the state pays the employee for up to 78 weeks for incapacity from the same illness.
3. Maternity leave in Germany is paid for 6 weeks before birth and 8 weeks after birth.
4. Parental leave is 12 months, and a further 24 months of unpaid parental leave is possible.
1. The termination process in Germany is relatively straightforward – terminations must be “objectively justified” if the employee is over 6 months of service.
2. Notice periods are stipulated in the employment contract (or any collective agreement) and is usually linked to the length of service.
3. The total employer notice period varies according to length of service, starting at 4 weeks, and increasing up to 5 months after 12 years of service.
4. There is no general entitlement to severance pay, although it is commonly negotiated.
5. Note that for collective redundancies, German local labour market councils and trade union representatives need to be consulted, and redundancy pay may be applicable.
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