Important aspects employers need now before hiring in Germany

Hiring a diverse workforce might be the secret to having a successful business in an increasingly competitive global market. With German’s economy outshining a majority of countries in Europe, companies throughout the world are seeking to hire employees from Germany. It can be simple for a company to hire locally, but when it comes to searching for global skills and talents, it is not a simple task. Hiring a German should involve consideration of various factors, from language, cultural diversities, and intricate labour laws. Generally, German employers and their employees’ relationship is strictly regulated by their employer and labour relations laws. A company is required to have contracts with its employees. The contracts should state the critical areas of employees and the company’s engagements, including responsibilities, duty, compensation, place of work, vacations, and period that workers are employed. You can visit review sites such as to see the various German companies and how they’ve been reviewed. Visiting online German services will also have you see some companies that can potentially employ you in Germany. Below essential aspects that a company should know before hiring in Germany are discussed.

The needed leave and working hours

A German’s workweek is subject to the country’s legal requirements. An individual workday should not be more than eight hours, while a workweek should not go beyond six working days a week. The cap on overpaying is 12 hours a week. A majority of Germans work for up to 40 hours a week. The country’s law entitles workers to a 9-day public holiday in which the days should be spread out throughout the year. Specific states in the country can have their extra holidays.  The federal holiday’s act entitles German employees to paid sick and vacation leave. The law gives employees a leave of 20 days, and if they work six days a week as opposed to five, they are given 24 days leave. Practically you will find that a majority of employers offer longer leaves. Except for a few exceptions, employees cannot carry their unused leave to the following calendar year. Some of the few reasons that carryovers can be permitted include operational reasons and will only be allowed with the employer’s permission. If an employee falls sick, they are by law entitled to a paid leave of six weeks per year but must provide a doctor’s note to prove the sickness. If this period elapses, then the health insurance of the employee can compensate them.


German tax laws cover federal income. In addition, there’s a variety of social taxes that cover Germany’s multi-faceted social insurance schemes. By law, the responsibility of social tax should be jointly shared by both employees and employers.  Apart from this, employers must hold onto a mandatory 5.5% solidarity surcharge of the employee’s taxes. Income tax is charged on a pay-as-you-go basis, and the finance ministry typically administers it, and it is payable to the state’s local state tax office. The employer has bestowed the responsibility of withholding the amount of tax from the employee’s salary and paying the amount to the government. Federal tax laws apply to employers who hire German residents or German citizens.

Laws relating to compensation

Traditionally Germany had been permitting trade unions and private groups to dictate minimum wages. However, in 2014, the government came up with the Minimum We Act which set the country’s minimum wage to €9.35 per hour. The law in Germany restricts the overtime amount that a German employee is entitled to weekly. However, there isn’t a law to determine the amount that should be paid as overtime. It is thus left to employers to determine the amount they will compensate their employees as overtime. This should be included in the employment contract. It is also the responsibility of the employer to determine the bonus they will compensate their employees.

Know what is included in protection against Dismissal

If you hire over ten employees in Germany, you are entitled to follow the Unfair Dismal act. This means that while dismissing a worker, you will need a reason that is justifiable legally. If you have less than ten employees, such a reason is not required. However, you should ensure that you dismal conforms to good faith and good moral principles and meets the relevant notice timeline. It is important to note that specific groups of workers including, those with disabilities, those on parental leave, and pregnant employees, are specially protected by laws against unjust Dismissal.

In conclusion, this article seeks to help employers in Germany with some critical aspects they need to know when hiring.