The Seven Most Important Issues
employees and employers are extensively
regulated. In most cases, individual
contractual agreements cannot deviate
from legal safeguards at the expense of the
individual employee. In addition, numerous
collective or company-based agreements
determine the working conditions of the
employees of various industries.
Apart from European law, the rulings of
German courts are of particular relevance
to the German labor law. Outstanding
specialists are needed to find their way
through the jungle of regulations. Companies
and investors from abroad are hence
confronted with particular difficulties when
This article is intended to help readers
understand the basics of the seven most
important issues of German labor law.
on the amounts of salaries in employment
contracts. However, a statutory minimum
wage amounting to EUR 8.84 (gross amount)
per hour has been applicable throughout
Germany since January 1, 2017. This
minimum wage can in no case be undercut
and will have to be paid by the employer in
any event.
Additionally, many collective agreements
provide for minimum pay rates that are
applicable to certain industries or regions
within Germany and will have to be paid
by any company that is a party to such
a collective agreement. Some collective
agreements are generally binding and have
to be observed even if the parties to the
employment contract are not covered by the
collective agreement (e.g., in the construction
industry, the hotel and restaurant industry
and facility cleaning).
time is 48 hours on average per six-day
week. The maximum permissible working
time per day is 10 hours. The period between
the end of one and the beginning of the next
working day must not be less than 11 hours.
After no more than 13 consecutive working
days without a day off, the employee must be
granted at least one day off.
Employees may work overtime up to the
statutory maximum working time of 48 hours
per week, but must get overtime pay or time
off in lieu in such cases. The details are
very often specified in collective agreements
or individual agreements between the
personnel working in executive positions
usually includes overtime work, which is
permissible within certain limits.
Postings
employers' other European Union (EU)
branches for a limited period of time
without fear of disadvantages in terms of
tax or social insurance law. Conversely,
employees from other EU countries may
also be temporarily posted to Germany
without losing the protection of the social
security system of their home country.
Posting employees from Germany to
countries outside the EU and from countries
outside the EU (e.g., the U.S. or Canada) to
Germany, however, involves greater effort.
Usually, an employee temporarily posted to
Germany will have to apply for a residence
and work permit. Depending on the length
of the posting, the employee may be subject
to German taxes and compulsory social
insurance. In any event, employees posted
to Germany are subject to the minimum
working and occupational safety conditions
set out by mandatory law. Whether or not
the employment contract is governed by
German law is irrelevant in this context.
leasing is comparatively important. Many
companies meet their staffing needs, partly
or even chiefly, by leasing workers (so-
called temporary workers) from temporary
employment agencies against payment of
a fee. Due to an amendment of law, which
has been in force since January 1, 2018,
the rules applying to the commercial
supply of temporary workers have become
WINHELLER Attorneys at Law & Tax Advisors.
He specializes in German employment law.
His main practice areas include advising on
collective labor law issues, especially concerning
co-determination matters related to German
industrial constitution law. He also focuses on
employee data protection and litigation.
Tower 185
Friedrich-Ebert-Anlage 35-37
Frankfurt am Main, Germany D-60327
winheller.com