EmployeeRightsinGermany—ArbeitsrechtGuide2026

How difficult is it to dismiss an employee in Germany?

For employees past 6 months in companies with >10 employees: quite difficult. KSchG requires valid legal grounds (personal, conduct, or operational). Conduct dismissal requires prior warnings. Operational dismissal requires proper social selection. Wrongful dismissal: employee has 3 weeks to file at Arbeitsgericht (labour court). Most cases settle for Abfindung (0.5 months' salary per year of service is the common benchmark). During Probezeit (first 6 months): dismissal with 2 weeks notice, no justification needed.

What is the German minimum wage in 2026?

The German minimum wage (Mindestlohn) was €12.82/hour from 2025. The Mindestlohnkommission reviews and adjusts it every two years. Sector-specific minimum wages (Branchenmindestlöhne) under AEntG may be higher — for example, construction (Bau) minimum wages are set above the general minimum. Violations: employers can be fined up to €500,000 for systematic minimum wage violations under MiLoG §21.

How many days annual leave are employees entitled to in Germany?

Minimum statutory leave: 24 working days per year based on a 6-day working week (§3 BUrlG) — effectively 20 days for a 5-day working week. Most employers and collective bargaining agreements (Tarifverträge) provide 25–30 days in practice. Leave accrues monthly — 1/12 per month of employment. Unused leave must be granted or paid out if employment ends. Leave can generally be carried over to Q1 of the next year with employer agreement.

What is a Betriebsrat and when must a company have one?

A Betriebsrat (works council) can be elected by employees in any establishment with 5 or more permanent employees. Employees elect the council — there is no employer requirement to create one, but if employees want to elect a Betriebsrat, the employer cannot prevent it. Once elected, it has extensive co-determination rights that significantly constrain unilateral employer decisions. Companies with Betriebsrat effectively have two management levels for HR decisions.

What is an Abfindung (severance payment) in Germany?

Abfindung is a severance payment (typically a lump sum) agreed between employer and employee when employment ends. There is no legal right to Abfindung in Germany — it is typically negotiated as part of a Aufhebungsvertrag (termination agreement) or Abfindungsvergleich (court settlement) after a wrongful dismissal claim. The common benchmark is 0.5 months' gross salary per year of service, but actual amounts depend on: employment duration, salary, negotiating leverage, and whether the KSchG applied. Abfindung up to €7,500/year of service is partially tax-free (§3 Nr.9 EStG — actually abolished, but tax courts often apply notional tax-free treatment to parts).

What is the Probezeit (probationary period) in Germany?

The Probezeit is the probationary period at the start of employment, during which either party can terminate with only 2 weeks notice (Section 622(3) BGB) and no justification required. Maximum Probezeit: 6 months. After the Probezeit ends, the statutory notice period increases (4 weeks minimum) and Kündigungsschutz (dismissal protection) begins after 6 months in companies with more than 10 employees. The Probezeit should be clearly stated in the employment contract - without it, the shorter notice period does not apply.

What maternity and parental leave rights do employees have in Germany?

MuSchG (Maternity Protection Act) prohibits dismissal of pregnant employees and for 4 months post-birth. 6 weeks before and 8 weeks after birth: Mutterschutz (compulsory maternity protection leave) with full Mutterschaftsgeld (maternity benefit). BEEG (Federal Parental Benefit Act): up to 3 years Elternzeit (parental leave) per child, job-protected. Elterngeld (parental benefit): 65% of net prior income for 12 months (14 if both parents take leave), maximum EUR 1,800/month. Employers cannot dismiss an employee on Elternzeit. Both parents can split and combine leave flexibly.

What is the German working time law (ArbZG)?

The Arbeitszeitgesetz (ArbZG) limits German working time to 8 hours per day, extendable to 10 hours if the average over 6 months does not exceed 8 hours. Minimum rest period: 11 consecutive hours between shifts. No work on Sundays or public holidays (with sector exceptions). Overtime is common in Germany but must be compensated via time off or extra pay per contract or Tarifvertrag. The ArbZG applies to all employees - exceptions exist for management positions (leitende Angestellte) and specific sectors (hospitality, healthcare). Works council (Betriebsrat) can negotiate flexible working time models.

What is a Lohnfortzahlung (continued pay during illness)?

Under EFZG (Entgeltfortzahlungsgesetz), employees receive full salary from their employer for the first 6 weeks of illness (Lohnfortzahlung) per illness episode. From week 7 onwards: Krankengeld (sickness benefit) paid by the statutory health insurer (GKV) at approximately 70% of gross salary. Employees must provide an Arbeitsunfähigkeitsbescheinigung (sick note, AU) from a doctor. Since 2023, AU is transmitted electronically by doctors directly to employers and insurers (eAU). Abuse of sick leave is grounds for Abmahnung (warning). Employers with fewer than 30 employees can claim reimbursement from the Ausgleichskasse (AAG).

What equal pay and anti-discrimination rights apply in Germany?

The Allgemeines Gleichbehandlungsgesetz (AGG) prohibits discrimination in employment based on race, ethnic origin, gender, religion, disability, age, or sexual orientation. Equal pay: the Entgelttransparenzgesetz (2017) gives employees in companies with 200+ employees the right to request information about the average pay of comparable colleagues of the opposite gender. The BVerfG and BAG have strengthened equal pay rights through case law. Pregnant applicants cannot be asked about pregnancy during interviews. Employers must document selection criteria to defend against AGG claims.