German Labor Laws

12

Transcript of German Labor Laws

All employees should have a written employment contract

identifying major aspects of the employment relationship.

The contract should also include items such as parties

involved, gross salary and benefits, required work, vacation

entitlement, start date, location of performance, and

notice periods.

Although employers and employees may create limited

term contracts, employment contracts are assumed to be

for an unlimited time period (unless otherwise specified).

Probationary periods are permitted for up to 6 months.

Probation times require a notice that at least 2 weeks must

be granted to any employees to be terminated.

(http://www.ilo.org)

Termination notices require a minimum of four weeks. (This is

distinct from the requirement of notification for termination

during probation period).

The longer an employee has been with a company, the

more advance notice of termination is required. With a

minimum statutory requirement of 4 months, one month of

required notification time shall be added as an employee

completes the 5th, 8th, 10th, 12th and 15th years with the

same employer.

In Germany, the law distinguishes between Ordinary

Termination (with notice) and Extraordinary Termination

(without notice).

For Ordinary Termination, expiration of the period of

notification will conclude the employment relationship.

With Extraordinary Termination, termination notifies

immediately ends the employment contract.

Extraordinary Termination usually occurs with instances of

serious misconduct. Termination must occur within a two

week period from the moment the notifying party

becomes aware of the information critical to the

termination.

Extraordinary Termination is legally permissible whenthere is significant reason making it inappropriate tocontinue the employment contract until the end of thenotice period.

For fixed contracts, extraordinary termination will terminatethe contract immediately dissolving the obligation tocontinue employment through the expiration stipulated inthe contract.

Seven months is the maximum period of terminationnotification required for any employee and is reserved forthose who have completed 20 years of service.

Any years of service for the same employer prior to theemployee’s 25th birthday will not be taken into accountwhen calculating the entitlement of termination notice.(http://www.ilo.org)

German law sets 48 hours as the normal work week with 8

hours per day.

In certain cases of collective agreement however, the

employee work week may be reduced to anywhere

between 35 to 38.5 hours.

Expecting or nursing mothers may not work more than 8

hours a day.

Likewise, employees/trainees under the age of 18 may not

work more than 8 hours a day.

Excluding those under 18 and nursing/pregnant women,

employees may have the work day extended up to 10

hours, provided that the average amount of hours per day

remains at 8 for the following 6 months .

(http://www.ilo.org)

Female employees are entitled to maternity leave all

throughout the pregnancy and up to 4 months after the

birth of the child. During this time, the employee is

protected from dismissal, with or without notice.

The female employee may not work for the employer, for

any reason, for the period of 6 weeks before birth until 8

weeks following birth.

In the event of multiple or premature births, the female

employee may not work for the employer for 12 weeks after

the birth.

During maternity leave, the female employee receives a

maternity allowance paid from a health insurance fund and

supplement provided by the employer.

If, per doctor’s orders, the pregnant employee must

completely or partly cease working to avoid a risk to herself

or the unborn child, the employer is obligated to partly/fully

release her from work obligations. In addition, the female

employee will receive a maternity wage equaling her

previous salary/wage.

When an employer is alerted of a pregnant employee, the

work tasks and work site must be structured in such a way as

to favor the pregnant/nursing worker. The pregnant/nursing

employee cannot be required to do any heavy lifting or

interact with dangerous materials.

The employer is liable for any violation to this requirement.

Sick leave entitles an employee to claim payment of wages

for up to 6 weeks.

To collect sick leave, the employee should have at least 4

weeks of service with the employer prior to falling ill.

The worker shall be entitled to 100% of his/her average income.

When personal reasons prevent an employee from working

for a short period, wages may be claimed.

Such reasons include: death, birth or funeral.

Any gender employee may take a child raising leave,

without pay, until the child turns 4.

This leave cannot be combined with the maternity leave.

(http://www.ilo.org)

Germany does not have a statutory minimum wage.

Nevertheless, collective agreements set a minimum wage

for different industries/positions.

The employment contract determines the pay and this

amount cannot be less than the minimum wage set forth by

the applicable collective agreement. (http://www.ilo.org)