Germany

Capital: Berlin

Currency: Euro- EUR

EUR

Overview of German Labor Law and Employment Policy

Key Legislation:
- German Constitution
- Federal Labor Court Act
- Employment Contracts Act
- Social Security Code
Legal Characteristics:
- Emphasis on employee protection and workplace equality
- Strict rules on dismissals
- Comprehensive social security system

Contract Types:
- Indefinite contracts
- Fixed-term contracts (maximum two years, renewable twice)
Contractual Provisions:
- Must include:
  - Identity and address of parties
  - Start date of employment
  - Contract duration (if applicable)
  - Place of work
  - Job description
  - Wages and benefits
  - Working hours
  - Annual leave
  - Notice period for termination
  - Probationary period (if applicable)
Language and Currency:
- Contracts must be in German
- Wages and benefits must be paid in euros

Standard Working Hours: 40 hours per week
Rest Days and Breaks:
- Minimum of 24 hours of rest per week
- Minimum of 30 minutes break for workdays exceeding 6 hours

Annual Leave:
- 20 days of paid annual leave for employees working 5 days per week
- 24 days of paid annual leave for employees working 6 days per week
Public Holidays: 9 nationwide public holidays
Special Leave:
- Sick leave: 6 weeks of paid sick leave
- Maternity leave: 6 weeks before and 8 weeks after childbirth (12 weeks for multiple births)
- Paternity leave: Included in parental leave
- Parental leave: Unpaid leave for up to 3 years

Notice Periods:
- Vary depending on employee's length of service, ranging from 2 weeks to 7 months
Severance Pay:
- Only applicable if employer terminates contract without proper notice
- Amount equals wages employee would have earned during notice period
Unfair Dismissal Protection:
- Employees are protected against unfair dismissal under the German Unfair Dismissal Protection Act

Personal Income Tax:
- Salary Range Tax Rate
  0 - 10,908 0%
  10,908 - 62,809 14%
  62,810 - 277,825 42%
  277,826 and above 45%
Social Security Contributions:
- Paid by both employers and employees, including:
  - Pension
  - Health insurance
  - Unemployment insurance
  - Accident insurance

Insurance Policy:
- All residents must have public or private health insurance
Insurance Coverage:
- Basic medical services, including doctor visits, hospital stays, and prescription drugs

Permit Requirements:
- Non-EU/EEA citizens require a work permit or visa
Application Process:
- Contact German embassy or consulate abroad
- Submit application and provide necessary documents

Enforceability:
- Confidentiality and non-compete clauses are enforceable in Germany
Common Provisions:
- Restrict employees from using or disclosing employer's confidential information after leaving employment
- Restrict employees from working for competitors after leaving employment

Legal Requirements:
- Employers must provide employees with safety training and skills development
Government Support:
- Government provides funding and incentives to support employee training

Legal Requirements:
- Prohibits discrimination based on race, gender, religion, or other protected characteristics
Enforcement Measures:
- Employers must establish policies and procedures to promote diversity and inclusion

Legal Framework:
- Remote work is supported by German labor law
Tax and Insurance Implications:
- Remote work may impact tax and social security contributions