Features of German Labor and Employment Law

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Relations between German employers and employees are extensively regulated under German labor and employment law. German labor and employment law is strongly biased in favour of employees and is probably best referred to as the “employee protection law”. Set out below are certain highlights of German labor and employment law:

In Germany, there is no such thing as “employment at will”. By law, German employees must have written employment contracts that reflect the key aspects of the employment relationship (e.g., parties to the contract, work to be performed, gross salary and benefits, vacation, starting date of employment, place of performance, notice periods).

For example, the employer must observe the applicable notice period, which is ordinarily determined by law (between four weeks and seven months, depending upon the length of employment). If the employer and the employee have mutually agreed upon a longer contractual notice period, the longer contractual notice period will prevail. Any agreement on a notice period that is shorter than the applicable statutory notice period will be invalid. Generally, termination of employment can only be effected as of the end of any calendar month. The employer must therefore keep the effective date of employment termination in mind when calculating when to deliver the notice of termination.