Fixed-term employment contract (befristeter Arbeitsvertrag): This contract has a predetermined end date, suitable for temporary positions or project-based work. There are stricter regulations around renewing these contracts.

• Maximum Duration: A single fixed-term contract cannot exceed 18 months in total in case of expats (Skilled Migrants). There is no limit on fixed-term contracts in case of local German candidates.
• Renewal Limits: Employees can only sign a maximum of three fixed-term contracts with the same employer in case of skilled migrants.
• Automatic Conversion: If you exceed the 18-month limit (in case of skilled migrants), the contract automatically converts to an indefinite-term contract (similar to a permanent position)
• Justification Required: The contract should specify the objective reasons why a fixed-term contract is necessary for the position

Permanent employment contracts in Germany, known as "unbefristeter Arbeitsvertrag," offer stability and long- term employment.

• No End Date: This contract has no specified end date and continues until one party terminates it with proper notice
• Greater Stability: Compared to fixed-term contracts, indefinite contracts provide more stability and predictability in your employment.
• Notice Periods for Termination: The required notice period for termination depends on your length of service with the company.
• Employee Benefits: Indefinite contracts typically come with the full range of employee benefits mandated by German labor law.

Employee benefits in Germany can be broken down into two main categories: mandatory and common.

Mandatory Benefits

These are required by German law and provide a strong social safety net for employees. They include:

• National Health Insurance: Covers inpatient and outpatient care, prescription drugs, and Both employers and employees contribute to the cost.
• National Pension: Provides income after Contributions are deducted from employee salaries.
• Unemployment Insurance: Offers financial support if you lose your Contributions are shared between employers and employees.
• Long-Term Care Insurance: Helps cover the costs of care if you need it in later There are mandatory contributions.
• Occupational Accident Insurance: Provides financial compensation if you are injured or become ill due to a work-related accident.

Common Benefits

In addition to the mandatory benefits, employers in Germany can offer additional perks to attract and retain talent. Here are some of the most common:

• Supplemental Benefits: These might include a private pension plan, additional health insurance, or life and disability insurance.
• Paid Time Off: German employees are legally entitled to at least 20 days of paid vacation per year, plus public holidays.
• Sick Leave: Employees receive full pay for the first six weeks of sick
• Other Perks: Company cars, gym memberships, childcare assistance, and transportation allowances are some attractive benefits offered by some employers.

Public Holidays:

• New Year's Day: Wednesday, January 1
• Three Kings' Day: Monday, January 6
• International Women's Day: Saturday, March 8
• Good Friday: Friday, April 18
• Easter Monday: Monday, April 21
• Labour Day: Thursday, May 1
• Ascension Day: Thursday, May 29
• Whit Monday: Monday, June 9
• Corpus Christi: Thursday, June 19
• Assumption Day: Friday, August 15
• German Unity Day: Friday, October 3
• Reformation Day: Friday, October 31
• All Saints' Day: Saturday, November 1
• Repentance and Prayer Day: Wednesday, November 19
• Christmas Day: Thursday, December 25
• Boxing Day: Friday, December 26

Annual Leaves:

In Germany, annual leave, also called vacation leave or holiday entitlement (Urlaubsanspruch), is divided into legal minimums and what's commonly offered by employers.

• Legal Minimum:
  • Full-time employees with a 5-day workweek are entitled to a minimum of 20 working days of paid annual leave per year.
  • For a 6-day workweek, the minimum is 24 working
• Common Employer Practice:
  • Most employers in Germany offer more than the legal It's common to receive between 25-30 days of annual leave, even for a 5-day workweek.

• Public holidays are separate from annual leave and are additional days
• The specific number of days employees receive will be detailed in your employment
• Some employers might offer additional leave based on factors like your age, length of service, or the intensity of your work.

Sick Leaves:

When employees are sick and unable to work, they are entitled to rest at home. However, employer has the right to demand proof; i.e. confirmation of illness/unfitness for work - which employees can obtain from a doctor. Colloquially, such a document is known as "Krankschreibung" (sick note), but the official term for it is "Arbeitsunfähigkeitsbescheinigung " (certificate of unfitness for work) or -for short- "AU"

• Employee Entitlement: In Germany, employees are entitled to receive continued payment of their salary (Gehalt) during sick leave, for a maximum of six weeks. This is paid by your employer under statutory sick pay (Entgeltfortzahlung im Krankheitsfall).
• Pay Rate: Employee will receive up to 90% of the net salary during this There's also a maximum daily amount, which is adjusted annually. In 2024, the maximum daily sick pay is €120.75.
• Doctor's Note: Employee will typically need to provide a doctor's note (Arbeitsunfähigkeitsbescheinigung) to the employer as proof of illness, especially if employee is out for more than three days.
• Extended Illness: If the illness extends beyond six weeks, then health insurance company (Krankenkasse) will take over payments under statutory sickness benefits (Krankengeld).
• Duration of Krankengeld: The maximum duration of Krankengeld benefits depends on your It can last for up to 78 weeks over a three-year period, with potential extensions in specific cases.

Maternity Leave

Germany's parental leave system is designed to support families after the birth or adoption of a child. It offers both mothers and fathers time off work while providing financial assistance. Here's a breakdown of the key features:

• Duration: Mothers are legally entitled to 14 weeks of maternity leave, with some
  • Start Date: The leave can begin up to six weeks before the expected due date, but no later than the day after childbirth.
• Benefits: During this period, mothers receive maternity allowance (Mutterschutzgeld), typically up to 90% of their net salary, capped at a daily This is paid by the statutory health insurance funds.
• Exceptions:
  • Multiple births or premature birth: An additional eight weeks of maternity leave is
  • Child with disability: An extended leave period might be possible upon

Paternity Leave

In Germany, paternity leave is actually incorporated into the broader parental leave system. While there isn't a separate, dedicated paternity leave period, fathers can benefit from parental leave after the birth of a child.

Here's a breakdown of paternity leave within the German parental leave system:

• Duration: As of October 2023, fathers are entitled to 10 days of paid leave around the birth of a This leave is separate from the parental leave entitlement.
  • It's important to note that there's currently a draft law in discussion (as of April 2024) to extend paternity leave to two weeks.
• Benefits: During this 10-day period, fathers receive financial support similar to maternity This is called Elterngeld and is typically up to 90% of their net salary, capped at a daily maximum.

Parental Leave

• Duration: Parents (mothers, fathers, or same-sex partners) can take parental leave for a total of up to three years following the birth of their child.
• Parental Allowance (Elterngeld): Similar to maternity allowance, parents receive parental allowance (Elterngeld) during parental leave. The amount is also up to 90% of your net salary, but capped at a different daily maximum.
• Splitting Leave: Both parents can split parental leave however they choose. They can take leave simultaneously or take turns.
• Notice Period: You typically need to give seven weeks' notice to your employer before starting parental leave

The probation period in Germany for regular employment contracts in 2024 is typically up to 6 months, but it can vary depending on the specific agreement between you and your employer.

• Standard Probation: By law, the maximum probation period is 6 This applies to both permanent and fixed-term employment contracts.
• Shorter or No Probation: Employers might offer contracts with shorter probation periods, or even no probation period at all.
• The probation period for a fixed-term contract in Germany in 2024 has some additional considerations compared to permanent contracts.
• Legal Maximum Still Applies: The legal maximum probation period of 6 months still applies to fixed-term contracts.
• Proportionality Principle Introduced: In 2022, a new law introduced the concept of proportionality. This means the probation period should be proportionate to the duration of the fixed-term contract and the type of activity.
• Example: For a fixed-term contract of 12 months or less, a 6-month probation period might be considered excessive by a court.
• Fixed-Term Contracts Might Have Shorter Probation Periods: It's becoming more common for fixed-term contracts to have shorter probation periods, reflecting the new proportionality

The notice period in an employment contract in Germany for 2024 can vary depending on a few key factors:

1. Who Initiated the Termination:

• Employee Resignation:
• Minimum Notice: By law, the minimum notice period for employees resigning is 4 This applies to all employees regardless of their position or length of service.
• Contractual Notice: Your employment contract might specify a longer notice period. This is quite common, and some contracts might require up to 3 months' notice for resigning employees. It's crucial to check your contract for the specific notice period that applies to
• Employer Termination:
  • Minimum Notice: The minimum notice period for employers also starts at 4 weeks, but it increases with the employee's length of service as shown below:
    • Less than 2 years: 4 weeks
    • 2 years to less than 5 years: 1 month (notice period ends at the month's end)
    • 5 years to less than 8 years: 2 months (notice period ends at the month's end)
    • 8 years to less than 10 years: 3 months (notice period ends at the month's end)
    • 10 years to less than 12 years: 4 months (notice period ends at the month's end)
    • 12 years to less than 15 years: 5 months (notice period ends at the month's end)
    • 20 years or more: 7 months (notice period ends at the month's end)
  • Contractual Notice: Similar to employees, the employer's notice period can be longer than the legal minimum if specified in the employment contract.

2. Reviewing Contract:

The most important factor regarding notice periods is always individual employment contract. When reviewing the contract, pay close attention to the following:

• Probation Clause: This clause might mention specific notice periods applicable during the probationary period, which can be shorter than the standard notice period.
• Termination Clause: This clause should outline the notice periods for both employer and employee

Additional Points:

• Notice Period Starts: The notice period typically starts one day after the employer or employee receives the termination notice (written resignation or dismissal letter).
• Rounding Up: The notice period is rounded up to the nearest whole month if it ends in the middle of a

Severance Pay

In Germany, unlike some other EU countries, there is no statutory right to severance pay if the employment agreement is terminated. This means employees are not automatically entitled to a financial payout from the employer if employees are laid off.

However, there are a few situations where employees might receive severance pay in Germany:

• Social Plan: If the company has a works council (Betriebsrat) and there are mass layoffs, a social plan (Sozialplan) might be negotiated. This plan may include severance payments for affected employees. The amount of severance pay in a social plan is typically calculated based on a formula that considers factors like age, salary, and length of service.
• Collective Bargaining Agreement (CBA): If employment is covered by a collective bargaining agreement (Tarifvertrag), the agreement might include provisions for severance pay in case of termination. The specific terms would be outlined in the CBA.
• Individual Contract Negotiation: In some cases, employees might be able to negotiate severance pay with the employer during the termination The amount would depend on your specific situation and the bargaining power.
• Severance Pay for Executives: German law offers a special provision for severance pay for executive employees who are fired without cause. In these cases, the court can order the employer to pay severance pay capped at a maximum of 12 months' salary, with increases for older employees with longer service.
• Justification for Termination: Even if employees don't receive severance pay, employer still needs to have a valid reason for terminating the employment contract and follow proper notice periods.
• Challenging Termination: If employees believe the termination was unfair or without proper cause, employees can challenge it in court.

In Germany, unlike many other EU countries, there's no legal mandate for overtime pay. This means employers aren't required by law to compensate employees with extra pay for working overtime hours.

However, there are some key points to consider regarding overtime pay in Germany (as of April 2024):

• Regulation of Overtime: German working hour regulations limit the maximum amount of overtime allowed. An employee cannot work more than:
• 10 hours per day
• 48 hours per week (averaged over a 6-month period)
• Collective Bargaining Agreements (CBA): Many workplaces in Germany have collective bargaining agreements (Tarifvertrag) negotiated by labor unions. These agreements often include provisions for overtime pay, specifying the rate and how it's calculated.
• Employment Contract: In the absence of a CBA, employment contracts might include clauses that specify overtime pay. These clauses would detail the overtime rate and any additional bonuses or compensations for working overtime hours.
• Standard Rates (if not specified in a CBA or contract): In the absence of a CBA or specific contractual terms, there's no set legal rate for overtime pay in Germany.
• However, customary practices often dictate an overtime pay rate of:
  • 125% of the regular hourly rate (100% regular pay + 25% overtime supplement) for regular overtime hours on weekdays.
  • Higher rates (including additional supplements for Sundays and public holidays) might apply for overtime on weekends and holidays.

• Tax Implications: Certain overtime pay surcharges (like those for Sundays and public holidays) might be tax-free in Germany.

In Germany, a robust statutory accident insurance system protects employees in case of work-related injuries or occupational illnesses. Here's a breakdown of how it works:

Who Pays?

• Employers Don't Pay Directly: Employers do not directly pay for employee work Instead, they are required to contribute to a statutory accident insurance scheme.
• Accident Insurance: This scheme is managed by employer's liability insurance associations (Berufsgenossenschaften) for most industries and by municipal accident insurance associations (Gemeindeunfallversicherungsverbände) for the public sector.
• Contributions: The employer's contribution rate varies depending on the industry and their accident

What Benefits Do Employees Receive?

• Medical Treatment: The statutory accident insurance covers the full cost of necessary medical treatment, rehabilitation, and medication following a work injury.
• Injury Benefits (Verletztengeld): If employee is unable to work due to the injury, employee receive injury benefits (Verletztengeld) which is up to 80% of your gross wages before the start of your disability period, but capped at a daily maximum set by the government.
• Pensions: In case of permanent disability caused by the work accident, employee might be eligible for a pension.
• Survivor Benefits: If a work accident leads to the death of an employee, surviving dependents may be entitled to survivor's benefits.

Employee Responsibilities:

• Report the Accident: Employee must inform your employer immediately about a work
• See a doctor: Employee should consult a special doctor, called a Durchgangsarzt (occupational accident consultant), for treatment.

Here's a 5 step process of how you can do this with us:

Step 1: Cooperation Agreement/MSA

• We will share Intake Sheet to collect company
• Based on the data provided in intake sheet, we will prepoare Cooperation Agreement/MSA for review and signature.

Step 2: Assignment Specification (Purchase Order)

• We will prepare Assignment Specification based on the candidate information provided in the Intake Sheet for review and signature.

Step 3: Employment Agreement/Offer Letter

• Once the AS is signed, we will prepare draft Employment Agreement for
• After the approval, we will share the final Employment Agreement to the candidate for review and
• We will share the final copy of the signed EA to all the

Step 4: Onboarding process

We will share the following documents with the candidates for signature

• Personal Questionnaire Form
• Bank Account details form (for payment purposes)
• Medical examination form and certificate
• Health Insurance documents (Health ID Card)

Once the documents are received, we will register the employee with authorities.

Step 5: Immigration Process (If any)

• Our Finance team will share the invoice for immigration process if
• Once the immigration invoice is cleared, we will start the onboarding

• Intake Sheet (Onboarding Sheet)
• Passport Copy
• Residence permit/ Work permit (if any)
• Updated CV
• Higher Degree
• Social Security number (if available)

Offboarding process can be classified into 4 categories.

1. Termination of a fixed term contract without extension
2. Pre mature termination by mutual consent
3. Premature termination by the employee
4. Premature termination by the employer

1.  Termination of a fixed term contract without extension

• Generally, fixed-term contracts end automatically upon the expiry date or completion of the specific task as outlined in the contract.
• Employees are not entitled for severance pay, but final pay should include salary for the period worked during the final pay cycle, along with any accrued but unused vacation pay.
• If the employee earned any holiday pay during their employment but did not take all their entitled vacation days, they are compensated financially for the unused days.

2.  Premature termination based on mutual consent

• This happens because of resignation or both the parties decide to terminate the contract mutually. In any case the standard notice period should be respected.
• In a case of mutual termination of an employment contract in Germany (Aufhebungsvertrag), the entitlements for the employee depend on what is agreed upon between the employer and the
• While not mandatory, severance pay (Abfindung) is a common element of mutual termination agreements. The amount can be negotiated and may depend on factors like the employee's tenure and
• The employer may agree to pay the employee a lump sum instead of requiring them to work through the notice period.
• Final pay should include salary for the period worked during the final pay cycle, along with any accrued but unused vacation pay.
• If the employee earned any holiday pay during their employment but did not take all their entitled vacation days, they are compensated financially for the unused days.

3.  Premature termination by the employee

• An employee in Germany can prematurely terminate their employment agreement, but there are important considerations and potential consequences to be aware of.
• Unlike some countries, Germany has mandatory notice periods that both employers and employees must adhere to when terminating a The notice period for an employee resigning depends on
  • Minimum Notice: By law, the minimum notice period for employees is 4 This applies to all employees regardless of their position or length of service.
  • Contractual Notice: Employment contract might specify a longer notice period. This is quite common, and some contracts might require up to 3 months' notice for resigning
• Breach of Contract: If employee terminate the employment without following the proper notice period as outlined in your contract, employee might be held liable for any financial losses the employer suffers due to your early departure. This could include costs associated with recruiting and training a replacement
• There are some situations where an employee can terminate their employment with immediate effect (fristlose kündigung) without following the notice period. However, these exceptions (Sonderkündigungsgrund) are based on serious reasons and require justification.

4.  Premature termination by the employer

In Germany, there are strict regulations regarding the premature termination of an employment agreement by the employer. Here's a breakdown of the key points for an employee to understand their rights:

Reasons for Termination:

Employers can only terminate an employment contract prematurely for specific reasons. These reasons are generally categorized into three main areas:

• Operational Reasons: When there are significant changes in the company's operations that necessitate workforce reductions. This could include restructuring, downsizing, or relocation.
• Behavioral Reasons: If an employee engages in misconduct that breaches the employment contract or disrupts the Examples include serious negligence, theft, or a violation of company policies.
• Personal Reasons: When there are reasons specific to the employee themselves, such as prolonged illness or lack of qualifications for the job. However, these reasons are subject to stricter scrutiny and require following proper procedures.

Important Safeguards for Employees:

• Notice Period: Employers must adhere to specific notice periods when terminating an employee's contract. The notice period increases with the employee's length of service (as mentioned previously).
• Social Justification: For operational redundancies, the employer must demonstrate social justification. This involves considering factors like the employee's performance, qualifications, and social circumstances when deciding who will be laid off.
• Collective Bargaining Agreements: If workplace has a collective bargaining agreement (Tarifvertrag), it might include additional provisions regarding termination procedures and severance pay.

Rights of the Employee:

• Challenge the Termination: If employee believe the termination was unfair or without proper cause, employees have the right to challenge it in court.
• Negotiate Severance Pay: While not mandatory by law, severance pay (Abfindung) is common in Germany when an employer terminates an employment contract. The amount is negotiable and depends on several factors like your salary, position, and remaining contract duration.