Arbeitsrecht

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Labor Law / Unemployment in Germany

- Job Search, Job Applications

- Employment Contract Clauses

- Fixed-Term Contracts, Part-Time Work, Parental Leave

- Sick Leave, Continued Pay

- Warnings and Termination, Mutual Termination Agreements

- Unemployment, ALG I, ALG II

Job Search / Job Applications

- The Federal Employment Agency assists with finding work or training

- German language courses / integration courses available

- Translations of documents, certificates, and foreign school, university, and vocational qualifications

- Information on professions; continuing education; qualifications easily accessible

- Applications typically submitted online or by email in Germany

- Cover letter; resume; certificates

- Job interview (interpreter available if needed)

- If you reside abroad, the potential employer may cover travel expenses; online interviews may be available

Employment contract / clauses

- Freedom of contract between employer and employee

- Protective regulations for employees

- Always insist on a written employment contract; no verbal side agreements

- Pay special attention to and review:

a. Job description

b. Wages; salary

c. Overtime

d. Special payments

e. Non-compete clauses

f. Probationary period and fixed-term contract

g. Contractual penalties and liability

Vacation pay and Christmas bonus

- An entitlement to a Christmas bonus exists only if it is stipulated in the employment contract, collective bargaining agreement, or established by company practice

- If you change jobs during the current year, you may be entitled to a pro-rated Christmas bonus from your previous employer (according to the Federal Labor Court)

- The Christmas bonus may be reduced, e.g., during parental leave or prolonged illness, provided this is legally permissible

Fixed-Term / Part-Time / Parental Leave

- Employment contracts may be concluded as either fixed-term or indefinite

- Indefinite? Termination or a termination agreement is required

- Indefinite? The contract ends upon expiration of the term

- Fixed-term contracts are possible with a specified duration and a specific purpose (e.g., sick leave replacement)

- Fixed-term contracts are possible for objective reasons

- Fixed-term contracts without objective reasons are only possible for new hires, for a maximum of two years, and may be extended no more than three times

- If the fixed-term contract is invalid, the contract is automatically considered permanent

- Part-time work may be requested at any time

- Parental leave may be requested for up to three years (leave of absence)

- Entitlement to part-time work upon return from parental leave under certain conditions

- No wages are paid during parental leave; parental allowance may be requested

- Special protection against dismissal during parental leave

- Parental leave is possible in any employment relationship (part-time, mini-job, etc.)

- Requirement is employment in Germany or an employment contract under German law

- Self-employed individuals, managing directors of partnerships and corporations, homemakers, students, schoolchildren, and the unemployed are not eligible for parental leave

Parental allowance

- Compensates for lost income

- Basic parental allowance available for 14 months

- The amount depends on income prior to the child’s birth

- High income = 65% of previous income

- Low income = 100% of previous income

- Everyone receives the minimum parental allowance, including homemakers, students, etc.

- Sibling bonus of 10% (min. €75)

- Parental allowance is offset against basic income

Sick leave / Continued pay

- Medically certified inability to work entitles the recipient to continued pay and sick pay

- Sick leave = Inability to perform work duties due to illness

- Initial and follow-up certificates available (usually a maximum of two weeks)

- Sick leave must be submitted to the employer (now transmitted electronically by doctors); no later than the third day (special arrangements possible)

- Requirement: The job must have been performed for at least four weeks

- Entitlement to continued pay exists for a maximum of six weeks

- Entitlement applies to each new illness

- Starting in the seventh week, the health insurance provider takes over; sick pay

- FHAmount: Sick pay amounts to 70% of gross earnings; max. 90% of net earnings

- Application is Application is not necessary

Warning / Termination

- Extraordinary termination and ordinary termination possible

- Extraordinary termination = without notice (good cause required, such as operational, personal, or behavioral reasons)

- Ordinary termination = with notice

- Less severe measure: warning

- Warning = breach of duty by the employee (e.g., violations of working hours)

- A warning is followed by termination if there is a repeat offense

- In exceptional cases, termination is also possible without a warning; for particularly serious breaches of duty

- A warning provides the opportunity to change one’s behavior in the future

- Part-time

-  Legal entitlement to part-time work since 2001

-  Since 2019, additional entitlement to temporary bridge part-time work

-  Requirement: at least 6 months of employment

-  The company must have more than 15 employees (for bridge part-time work: more than 45)

-  Request for part-time work must be submitted in writing at least 3 months in advance

-  Employer must discuss the request and respond in writing within one month

-  Rejection permitted only for significant operational reasons

-  Part-time positions must be advertised if suitable candidates are available

-  Employees must be informed of suitable vacancies

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Unemployment / ALG I / ALG II

Unemployment Benefits Requirements:

- Unemployed

- Registered as unemployed

- Insured under unemployment insurance for at least 12 months

Calculated based on gross earnings from the past 12 months.

Unemployment benefits amount to 60% of the qualifying earnings.

Under 50 years of age? Maximum of 12 months of unemployment benefits

Over 50 years of age? The benefit period increases in several stages up to 24 months

Unemployment benefits are also paid if you previously worked abroad. This includes EU countries, Switzerland, Norway, Iceland, and Liechtenstein.

Basic requirement: You must have worked in a job subject to social insurance contributions after returning to Germany.

Unemployment benefits from Germany can also be received abroad if:

- You are registered as unemployed in Germany

- You are a German citizen or a citizen of the EU, Switzerland, Norway, Iceland, or Liechtenstein

- You have observed the waiting period (at least 4 weeks) before leaving the country

German unemployment benefits can be received for a maximum of 3 months, or up to 6 months under certain circumstances, and must be applied for before departure.

Citizen’s Income replaced ALG II

- Basic income or basic security for people capable of working and in need

- The standard rate for single persons is €502

- Payment is made on the last business day of the previous month

- During the first year of receipt, the former residence may be retained; housing costs are covered, as are utilities; heating costs are borne by the recipient

- Guidelines apply for the future; housing must be “reasonable”

- Assets up to €40,000.00 are permitted; not counted against benefits; applies only in the first year

Requirements for Bürgergeld:

- Need

- Basic ability to work

- Following receipt of unemployment benefits

- Availability to the Jobcenter

An application must be submitted!

- EU citizens are entitled to the citizen’s income after five years of residence, provided they are neither working in Germany nor able to claim social security benefits based on a previous job subject to social security contributions

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