Probationary periods may extend up to six months. Within this period, both parties retain the right to provide a notice of termination lasting two weeks.

A standard workweek is deemed to range from 38 to 40 hours, with workdays typically lasting eight hours and not exceeding 10 hours. According to statutory regulations, the maximum average weekly work hours over a six-month period should not surpass 48 hours. Following each workday, there must be an uninterrupted minimum break of 11 hours. Special authorization is necessary for work conducted on Sundays and official holidays in Germany.

There is no statutory overtime rate; instead, it is determined through contractual agreements. The regulation of overtime is mainly governed by standard contract terms, with the requirement that the agreement is equitable. Any provision that integrates overtime into overall wages must clearly specify the amount of overtime involved.

Bonuses are prevalent, but it is crucial to exercise caution to guarantee clear and objective language in the contract or any accompanying addenda. For instance, bonus schemes might label bonuses as entirely discretionary. However, in practice, once a bonus is tied to performance in any way, it becomes challenging for the employer to uphold its complete discretion in the eyes of the law.

The Employee is obliged to give the Employer the following notice:

In most cases, the Dismissal Protection Act (“Kündigungsschutzgesetz”) becomes applicable after an employee has been employed for more than six months. According to this act, a termination is only valid for the following reasons:

• Conduct-related (malperformance or misconduct)
• Personal (such as prolonged illness)
• Operational reasons

Certain employee groups receive special protection against termination, including pregnant employees and mothers within four months after childbirth, employees on parental or caregiver leave, severely disabled employees, works council members, and data protection officers.

The termination notice must be provided in writing, signed in ink by an authorized representative of the employer, and does not necessarily need to state the reasons for dismissal. The dismissal letter must be delivered to the employee in its original form. In case of a dispute, the employer is obligated to provide evidence of the proper and timely delivery of the dismissal notification.

Written agreements are necessary for any post-termination restraints, and those safeguarding the employer’s legitimate business interests are typically enforceable if deemed reasonable.

• Non-competition clauses are generally limited to six to 12 months, with a statutory maximum of two years. Employers are obligated to provide compensation equivalent to 50% of the employee’s wages during the non-compete period.
• Customer non-solicitation clauses are permissible in specific situations.
• Employee non-solicitation clauses are only enforceable if the restrictions pertain to illegal poaching. Agreements that limit the hiring of employees from a particular business are not legally enforceable.

Germany does not have statutory severance pay. A lawful termination results in the conclusion of employment without compensation, except in cases where the dismissal is part of a collective restructuring covered by a social plan agreed upon with the works council. If a dismissal is deemed invalid in Germany, the labor courts may enforce reinstatement unless a settlement is reached. Settlements are customary in Germany, with a general formula granting the employee between 1 and 1.5 times the monthly salary per year of service, and there is no maximum threshold for settlements.

Employers do not have a statutory right to pay employees in lieu of notice. The possibility of garden leave depends on the contractual terms and the merits of the case, balancing the interests of both parties. Garden leave is commonly granted to senior employees in Germany.

Fixed-term contracts are allowed only for clear and substantive reasons. However, contracts with a duration of two years or less are an exception to this rule. During this period, the maximum number of consecutive fixed-term contracts is four. Both fixed-term contracts and contracts under the ‘AüG’ license must be executed in the original, hard copy, with a wet ink signature.

When an employee holds an employment contract, it is a legal requirement to provide a written salary payslip that includes comprehensive details of both gross payments and deductions.

Employers must monitor the actual working hours of their employees, necessitating the accurate recording of the start, end, and duration of working hours, including overtime and breaks. If this responsibility is assigned to the employees, the employer is obligated to furnish the necessary tools for the employees to fulfill this requirement.

Full-time employees have a minimum entitlement of 20 days per year for holiday leave. Nevertheless, many employees enjoy a more generous allocation, with common practices ranging from 25 to 30 days, particularly for white-collar employees.

Generally, holiday leave should be utilized within the same year it is granted. Carryover is only allowed in cases of urgency for business operations or compelling personal reasons for the employee. However, any carryover must receive mutual agreement from both the employer and the employee. Furthermore, any leave carried over must be utilized within the initial three months of the new holiday year.

German public holidays, ranging between 9 and 12 days annually, are established by each federal state. German Unity Day is an exception to this rule. Generally, there is a prohibition on working on public holidays, with only a few exceptions. Holidays are typically observed on their designated calendar day.

Employees have the right to receive their full remuneration from their employer for a period of up to six weeks during sickness, subject to specific conditions. Following this period, they may apply for sick pay through the statutory (or voluntary private) health insurance for a duration of up to 72 weeks.

Women are prohibited from working for a period of six weeks before giving birth and eight to 12 weeks after.

A woman is eligible for 14 weeks of maternity pay, equivalent to her last salary, funded by the employer with a contribution from the employee’s health insurance.

Both mothers and fathers have the right to parental leave for up to three years. The state provides payment for parental leave for 12 months (or 14 months if the other parent takes at least two months) with a net payment rate of 67%. Additionally, 24 months of unpaid parental leave are possible, ensuring the employee retains full workplace protection and the right to return to work.

While on parental leave and meeting specific conditions, the employee has the right to engage in part-time employment, which can be set for up to 30 hours per week, either with the original employer or a different one (with the consent of the original employer). At the conclusion of parental leave, the employee is entitled to return to work under their original terms and conditions.

Employees who are pregnant, on maternity leave, or on parental leave benefit from additional protections against termination.

Employees requiring immediate care for a dependent child or adult are entitled to receive up to 15 days of caregiver leave from their employer. The obligation for salary payment during this period may be stipulated in a bargaining agreement or the employment contract. In cases where no payment is provided, employees have the option to claim a subsidy from the state through the nursing insurance social provision.

Any leave beyond statutory leave periods typically involves individual negotiations or may be addressed in Collective Bargaining Agreements (CBAs) or works council agreements. This encompasses compassionate leaves or leave associated with relocation.