Working as an expat in Germany is an exciting opportunity. In addition to cultural and language aspects, an understanding of German employment law is crucial for a smooth and fair working life. The German legal system offers employees strong protection, but is also complex and characterized by specific rules. For expats in particular, unfamiliar regulations can become pitfalls - from drafting contracts to taxes and dismissal. This article highlights 10 essential points that you should know as an international employee in Germany in order to protect your rights and fulfill your obligations. It has been updated to take account of relevant legal developments for the year 2025.
1 Your employment contract: the foundation of your rights
Your written employment contract is the decisive basis. Understand every detail before you sign! Pay particular attention to:
Probationary period: Maximum 6 months. Shorter notice periods apply during this period (often 2 weeks).
Notice periods: By default, statutory notice periods apply (e.g. 4 weeks to the 15th or end of the month), which become longer with increasing length of service. The contract can only agree *longer* notice periods (for employees).
Scope of duties: The job description should be clear. Changes require your consent.
Remuneration: gross salary, payment date, bonuses (e.g. for night work) must be precisely defined. Check whether the minimum wage (2025: €12.82/hour) is complied with.
Agreements on secondary employment: These are often subject to approval. Clarify this with your employer.
An unclear contract will almost inevitably lead to conflicts later on. If anything is unclear, do not hesitate to ask questions before signing or consult an independent employment lawyer to check.
2. taxes and social security contributions: Understanding payroll accounting
Your gross salary will be significantly reduced. The main deductions are
Income tax: Amount depends on your tax class (married? children? second job?) and salary. You will receive the electronic wage tax statement from your employer every year for your tax return.
Social security contributions: Jointly borne by employer and employee. These include:
- Health insurance (statutory or private)
- Long-term care insurance
- Pension insurance
- Unemployment insurance
Church tax: Only due if you belong to a tax-collecting religious community (approx. 8-9% of income tax).
Your monthly payslip must list all deductions in detail. Check them regularly! Mistakes happen and can be corrected. The German tax return (voluntary for employees, often worthwhile) can lead to a refund.
3. working hours, breaks & overtime: The limits of what is feasible
The German Working Hours Act (ArbZG) sets clear limits to protect health:
Maximum working hours: 8 hours per working day (Mon-Sat), can be extended to up to 10 hours if the average is reduced to 8 hours within 6 months.
Breaks: For 6-9 hours of work: at least 30 min. break; for over 9 hours: At least 45 minutes. Breaks must be fixed in advance and can be divided into blocks of at least 15 minutes.
Rest periods: There must be an uninterrupted rest period of at least 11 hours after the end of work.
Recording working hours: Since 2025, the systematic recording of all working hours has been a legal requirement for all employees! Companies must introduce a suitable system (e.g. timesheet, app, time clock).
Overtime: In principle, overtime must be ordered or approved. It is only compulsory within the scope provided for in the contract or collective agreement. Compensation or time off in lieu must be clearly regulated. Unpaid obligation to work regular, long hours is illegal.
4. vacation, illness & parental leave: your right to rest and care
Vacation entitlement: Statutory minimum of 20 working days (for a 5-day week = 4 weeks). Collective agreements or employment contracts often grant 25-30 days or more. The full entitlement only arises after 6 months of employment. Vacation must be applied for and approved. Remaining vacation generally expires on 31.03. of the following year.
Reporting sick: If you are unable to work, you must inform your employer immediately. A medical certificate (certificate of incapacity for work) must be submitted from the 4th day of illness. You will receive full sick pay from your employer for up to 6 weeks per illness. After that, the health insurance fund will step in with sick pay (approx. 70% of gross salary, capped).
Parental leave: Parents are entitled to unpaid leave for up to 3 years per child (up to their 8th birthday). Part of this (up to 24 months) can also be transferred to the partner. Parental allowance (state benefit) can be applied for at the same time.
5 Protection against dismissal and notice periods: knowledge is power
Dismissals by the employer are subject to strict rules:
Dismissal Protection Act (KSchG): Only applies in companies with generally more than 10 full-time employees** (trainees do not count). In small companies, only the basic periods and the ban on socially unacceptable or immoral dismissals apply.
Socially justified dismissal: If the KSchG applies, the dismissal must be "socially justified": due to behavioral reasons (e.g. serious breaches of duty), personal reasons (e.g. long-term illness with a negative prognosis) or operational reasons (e.g. job cuts).
Notice periods: Are determined by law (BGB) and/or contract/tariff. The statutory basic period is 4 weeks to the 15th or end of the month and is extended with the length of service (e.g. 1 month to the end of the month after 2 years, 7 years: 2 months...). Collective agreements may deviate.
Special protection against dismissal: exists, for example, for severely disabled persons, pregnant women, works council members or employees on parental leave.
6 Settlement: A possible solution in the event of separation
A severance payment is a one-off financial payment made by the employer to the employee on termination of the employment relationship. Important to know:
No legal entitlement: There is no general legal entitlement to a severance payment! It is usually agreed as part of a termination agreement or as a settlement in the context of an action for protection against dismissal.
Amount: A common guideline is 0.5 gross monthly salaries per year of employment. Age, job opportunities and reason for termination play a role. Collective agreements sometimes contain specific regulations.
Tax treatment: Tax treatment: Severance payments are generally subject to income tax. There is no flat-rate tax allowance for severance payments. Instead, the "fifth rule" in accordance with § 34 EStG can be applied in order to mitigate tax progression. The severance payment is spread over five years, which often results in a lower tax rate. Important change from 2025: The one-fifth rule must now be applied for via the tax return - employers will no longer apply it automatically during payroll accounting.
Bargaining chips: Severance pay is often a matter of negotiation. A lawyer for employment law can support you in this and strengthen your position.
7. dismissal protection action: your legal weapon
If you consider a dismissal to be unlawful, your most important instrument is to file an action for unfair dismissal:
Urgent deadline: You only have three weeks from receipt of the written notice of termination to file a complaint with the competent labor court! This deadline is absolute and cannot be extended. If it expires, you will lose your protection against dismissal.
Objective of the action: The court examines the legality of the termination. Possible outcomes are:
- Determination of the effectiveness of the termination.
- Determination of the invalidity of the termination (continuation of the employment relationship).
- Termination of the employment relationship against payment of a severance payment (most common case, often as part of a court settlement).
Preliminary proceedings (conciliation hearing): Labor court proceedings always begin with a conciliation hearing in which an agreement (often with a settlement) can be reached.
Compulsory representation by a lawyer: In the labor court, a lawyer is only compulsory in the second instance (regional labor court). Although a lawyer is not mandatory for filing a lawsuit (first instance), it is strongly recommended due to the complexity and short deadline. A specialist lawyer for employment law knows the strategies and can significantly increase your chances of success. A law firm like Rotwang Lawwhich specializes in employment law and often also in advising international clients, can offer valuable support here.
8 The role of an employment lawyer: your professional partner
A lawyer for employment law is not only important in the event of a conflict:
Contract review: Before signing an employment contract.
Advice on questions: on working hours, overtime, vacation, illness, pay slips.
Conflict support: For problems with superiors, bullying or alleged legal violations.
Negotiation of termination agreements: Securing a fair severance payment and regulating all modalities.
Conducting the dismissal protection action: meeting deadlines, statement of claim, representation in court, conducting negotiations.
Expat-specific advice: special features of residence permits, international aspects, language barriers.
Investing in an initial consultation with a lawyer can prevent costly mistakes.
9 Language and culture: the key to integration
Legal knowledge is one thing, practical implementation is another:
German language skills: Are essential for understanding contracts, company agreements, payslips and communication in everyday working life. Even if the working language is English, contracts and official documents are often in German. Basic knowledge is a must, advanced knowledge opens doors and avoids misunderstandings. Take advantage of offers such as integration courses.
Works council: Many companies have a works council to represent the interests of the workforce. It has co-determination rights in many personnel matters (e.g. recruitment, dismissals, working hours). Know your works council and its function.
Direct communication: German business culture often values direct and factual communication. Feedback can be blunt, but is usually not meant personally.
Punctuality and reliability: Highly valued. Deadlines are to be taken seriously.
Hierarchy and decision-making: Structures can be more formal than in other cultures. Decisions sometimes take longer because processes are adhered to.
10. current legal changes and trends 2025: always stay up-to-date
Labor law is evolving. The following points will be particularly relevant in 2025:
Planned discussion claim for mobile working: A concrete "Mobile Work Act" with a fixed entitlement does not yet exist. However, the coalition agreement plans a right to discussion for employees in suitable jobs. Employers would only be allowed to refuse mobile working for operational reasons - arbitrary refusals would no longer be possible. The corresponding law is still being developed
Recording working hours: The obligation to record all working hours without gaps has been implemented across the board since 2025. Employers must have a system in place. As an employee, you must record your working hours correctly and have the right to inspect them.
Minimum wage: The statutory minimum wage is raised regularly (2025: €12.82/hour). Make sure that you receive at least this amount.
Strengthening collective bargaining coverage: There are political efforts to strengthen collective bargaining coverage (e.g. by making it easier to declare collective agreements generally binding). For you, this means that a collective agreement in your sector can also become binding for your employer, even if it is not a member of the employers' association. Check whether a collective agreement applies to you!
Sustainability & ESG: Topics such as the environment, social issues and corporate governance (ESG) are becoming increasingly important and can also have an impact on working conditions and corporate culture.
Conclusion
Germany offers a strong employee protection system, but it comes with rules and peculiarities. As an expat, it is crucial to actively familiarize yourself with German employment law - from contract details, working hours and social security contributions to the complex rules on dismissals. Knowledge of the deadlines for filing an action against unfair dismissal and the possibility of severance pay is vital in the event of a conflict. Current legislative projects underline the dynamic nature of this area of law. Don't be afraid to seek professional help (e.g. from us at Rotwang Law) if you have any uncertainties or problems. With preparation and knowledge, you can make your expat adventure in Germany successful and legally compliant.
