Global Expansion Resources | Germany
Germany Employment Contracts
Helping business expand into Germany with our specialist PEO services
Comply with German employment laws and issue law-abiding German employment contracts using our expert PEO services
In the heart of central Europe, Germany has quickly become one of the most desired locations for business expansion within the continent. Industries such as automotive, engineering, service and healthcare remain some of Germany’s most dominant areas of economic growth, so it is not surprising that many businesses opt for expansion into this country.
When growing your business and increasing your workforce internationally into a new market, it is crucial you have compliant and fair employment contracts which protects both you and your employees. In particular, Germany has very strict legislation regarding employment contracts, also known as Arbeitsvertrag, and therefore must be dealt with with caution as to not risk non-compliance.
Complete our enquiry form for a free quote!
What’s included:
HR software
Bespoke employee management software included in our PEO service.
Global compliance
We have expert teams across the world to ensure global compliance.
Transparent pricing
Avoid hidden costs and account for our fee with our transparent pricing.
Germany Expansion Advice
Overview of German Employment Contracts
Employers with employees based in Germany must follow the regulations set out by national employment legislation, collective agreements and works council agreements. In addition to this, employers must be familiar with existing German labour laws and employee entitlements in order to stay compliant when issuing their German employment contracts. For example, regimented labour laws in Germany include employee protections, such as:
- Written employment contracts required by law
- Strict employment termination laws to prevent undue dismissal
- 20 days of annual holiday entitlement
- Strict limits surrounding working on public holidays and Sundays
- Employees must not work for more than 48 hours per week (or 8 hours per day)
- Full pay for the first 6 weeks of sick leave
- Full paid maternity leave
Though this is not a definitive list of laws which must be abided by by employers, there are many other recommended and optional provisions which may be incorporated into the employment contract. This may vary depending on your employment sector, so it is vital you are aware of which terms must be included specifically for your business.
What types of employment contracts are there in Germany?
Similar to multiple countries within Europe, Germany has many different types of employment contracts, with the most common being:
- Permanent labour contracts (unbefristeter Arbeitsvertrag) – relating to an unspecified period of time, which typically includes a 6-month probationary period. After this time, the employer can only terminate the employment if resignation occurs or there are legal grounds to dismiss the employee.
- Fixed-term labour contracts (befristeter Arbeitsvertrag) – relating to contracts which are valid for a specified period. There is the option to renew said contract by the employer, but it is not a legal obligation to do so. This type of contract is limited to a maximum period of two years.
Can I change an employment contract?
Changes to German employment contracts must be done with the consent of both the employee and employer. Any amendments to the contract must be discussed and agreed with the relevant parties prior to this change.
Amendments made to employment contracts in Germany without the knowledge of the essential parties could further increase the risk of non-compliance and could potentially result in further employee disputes. Once again, this can cause unnecessary wasting of time and money, on top of your business being guilty of legal misconduct.
Do I need to translate an employment contract?
Employment contracts should be translated into your employee’s preferred language. While this may come as an obvious statement, the complexities of legal terms can easily be misinterpreted and could potentially create issues of misunderstanding further down the line. This is something which must be tended to properly when expanding your business into Germany.
How do I write a German employment contract?
When it comes to the specifics of employment contracts, it is mandatory that the contract must be concluded in writing and must be given to your employee no more than one month after their employment has commenced. At a standard level, all employment contracts require the following points:
- Role description (including duties, job title and other information)
- Name and address of the employer and employee
- The place of employment
- Duration of employment, including employment commencement date
- Probationary period (or trial period)
- Working hours
- Salary, including bonuses
- Additional company benefits such as car or mobile phone
- Allocated holiday leave
- Pension schemes
- Contract temrination conditions
- Working locations and travel expectations (especially for international companies)
As is expected, employment terms must be correct at the time of writing to prevent the eventuality of employee disputes, based upon incorrect information which was stated within the final employment contract. Disputes are capable of costing your business significant amounts of time, stress and money and will undoubtedly impact your employee’s satisfaction. This is why Germany PEO services are necessary to ensure compliance from the very beginning.
Why use a PEO partner to manage German employment contracts?
Issuing and creating compliant German employment contracts is not only a task which is complicated to navigate, it is also one which is steeped in risk. Failure to comply with the necessary German labour laws and the required employment terms can open your business up to tricky employee disputes, fines and wasted time which could be better spent successfully expanding your business.
Combined with other vital aspects of international company growth, such as payroll, national insurance, tax, entity setup, recruitment, work permits and visas, there’s a lot you need to consider when expanding into Germany.
Thankfully, Leap29 can make your expansion easier and relieve you of all the stresses associated with employment contracts and more. We have a team of PEO experts who are fully certified, and extremely knowledgeable about Germany employment laws who are ready to take on the task of helping you to expand your business.
We have over 20 years of experience providing recruitment services to businesses covering multiple sectors, including Engineering and Construction, Oil & Gas, Pharmaceuticals, Renewable Energy and Technology. With the help of our PEO partners, you can trust Leap29 to aid your expansion into Germany successfully.
If you are interested in learning more about how our PEO services in Germany can benefit your business, contact our specialists today, or call our experts on +44 (0) 20 8129 6860 or email [email protected] to get started.
Don’t take our word for it!
“
Talk to an expert today
Whatever stage you’re at in your global expansion journey, we can help.
Contact us today to see how Leap29 can be the trusted PEO partner that supports your global expansion.
By submitting this form, you agree to our privacy policy.
Germany
Expansion Resources
Local expertise, global reach
Employ people compliantly in 180+ countries – with or without your own foreign entities. We can help you set up and manage foreign entities – or act as an Employer of Record. We can also help with multi-country payroll and all your HR management. Wherever, whenever and however you want to employ people, we can help.
180+
Brazil
Malaysia
Singapore
Cyprus
Finland
Italy
Spain
Sweden
Germany
United Kingdom
We make expansion in Germany simple
Employing people compliantly across international borders can be challenging but we make it simple, bringing down barriers and making light work of the complexities. We offer the full range of compliant global expansion solutions so that wherever, whenever and however you want to employ people, we can support you.
EOR Services
Employ people compliantly in 180+ countries – without setting up new entities. We’ll shoulder responsibility as Employer of Record (EOR), making sure all your international employment is fully compliant.
We can also take care of your global HR from multi-country payroll to onboarding and offboarding.
Payroll Solutions
Getting global payroll right is one of the hardest challenges for any business expanding into new countries. We can shoulder this burden, freeing up valuable in-house resource to focus on growing your business.
Consider us an extension of your HR team, ready to answer all your questions large and small.
Global Mobility
Mobilise your people across borders with ease. Relocating to work abroad can feel daunting. But with Leap29 at your side, your employees can feel safe and supported.
We’ll guide your employees through the complexities of working in another country, helping them settle in fast.
Entity Services
Follow the opportunities to grow your business – wherever they take you.
We lighten the load of establishing and managing foreign entities and can help you solve all your entity challenges from running compliant, accurate multi-country payroll to local accounting and financial reporting.
PEO Solutions
Employ international talent wherever and whenever you need it – and enjoy the peace of mind of knowing you’re fully compliant. Our Professional Employer Organisation (PEO) services allow you to focus on growing your business while we handle compliance, multi-country payroll and your global HR.
Support & Advisory
The help you need to make your global growth effortless – trusted guidance and advice on your expansion challenges large and small.
HR Support
When you’re employing people in lots of different countries, answering just a simple query can take a disproportionate amount of time for your in-house HR team. Our HR Support service reduces this burden, saving you time and money and giving you the confidence of knowing your employees are well looked after, whatever their location.
Contractor Payroll
Enjoy compliant contractor payroll that meets all local requirements for tax, social security and employment legislation. We understand the importance of compliant contractor payroll to the success of your business and will pay your contractors on time, every time.
Start hiring today – and onboard within hours.
Pricing
Budget confidently with transparent, competitive fees and no hidden costs.
Want us to shoulder employer liability and take care of your global HR through our EOR solution? No problem. Just want global payroll? You can have that too. Pick the solutions that your individual business needs.