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Labour Law in Germany – What You Need to Know

Labour Law in Germany – What You Need to Know

Going to work in Germany is, for many people, an opportunity for stable employment, higher wages and good social conditions. However, to start your job safely, it is worth learning the most important rules that regulate the relationship between employee and employer. The guide below explains what labour law looks like in Germany, what rights employees have, and what you can expect from an employer.

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Labour Law in Germany — Employment Contract in Germany

Every employee hired in Germany must receive a written employment contract (Arbeitsvertrag). This document should include all key information, such as:

  • the position and scope of duties,
  • the place of work,
  • the amount of salary and payment date,
  • working hours,
  • information about any trial period,
  • rules regarding holidays, breaks and overtime.

Employers are required to provide the contract no later than on the first working day. In Germany, both fixed-term and open-ended contracts are allowed. In the case of a fixed-term contract, it is worth checking whether it includes the possibility of early termination — this is not always standard.

Labour Law Germany — Wages and the Minimum Rate

Germany has a uniform statutory minimum wage. In 2025, the minimum hourly rate is €12.82 gross. From 1 January 2026, the statutory minimum wage will be raised to €13.90 gross per hour. This means that with full-time employment, you can count on stable and predictable earnings, even in simple jobs that do not require extensive experience.

However, many industries have higher rates based on collective agreements or market demand. This applies to, for example:

  • logistics,
  • warehouses,
  • construction,
  • care services,
  • cleaning.

The employer must clearly state the amount of salary and the way additional hours are settled. In Germany, salary transfers are usually made monthly, and the basic wage is often supplemented with bonuses, allowances or per diems.

Labour Law in Germany — Working Hours and Overtime

The standard working time is usually 48 hours per week, although in some companies it may be 35–40 hours. According to German regulations, daily working time should not exceed 8 hours. In exceptional cases, it is possible to work up to 10 hours a day, but only if the average over a longer period remains below the statutory limit.

Every employee is entitled to breaks:

  • at least 30 minutes after working 6 hours,
  • at least 45 minutes after working 9 hours.

There must be at least 11 hours of rest between the end of one shift and the start of the next.

Overtime is allowed, but its method of compensation must be clearly stated in the contract. Overtime may be paid or replaced with time off — depending on the agreement with the employer.

Labour Law in Germany — Notice Period

Labour law in Germany regulates notice periods very precisely. The standard notice period for short seniority is 4 weeks, usually until the 15th day of the month or until the end of the month.

As the length of employment with the same employer increases, the notice period becomes significantly longer — it can reach several months. The employer must issue the notice in written form and sign it. A verbal notice is not legally valid.

In the case of fixed-term contracts, termination is often not possible during the contract period — unless the document contains a specific clause allowing it.

Additional Information — Holiday, Sick Leave and Insurance

Employees are entitled to a minimum of 20 days of paid leave per year with a five-day working week. In many companies, 25–30 days is standard.

In case of illness, the employee is entitled to paid sick leave — usually for the first weeks the salary is paid by the employer, and afterwards the responsibility shifts to the health insurance fund. Anyone working legally in Germany is covered by compulsory insurance: health, social, pension and long-term care insurance.

Why This Is Important for You

If you are planning to work in Germany, knowing labour law is your protection. Thanks to this you:

  • know the minimum amount you can earn,
  • understand your rights regarding working time, breaks and holidays,
  • know that the contract must be in writing and what it should contain,
  • know the notice period — protecting you from sudden dismissal,
  • are aware of your rights regarding overtime, insurance and illness.

Knowing these rules allows you to verify a job offer and avoid abuses — such as payment below the minimum wage, unpaid overtime or illegal “verbal agreements”.

If you are considering going abroad, remember that all people interested in working in Germany can find current and verified job offers on our platform europa.jobs. Check the latest listings and choose a job that suits your expectations!

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