Working life country profile for Germany
This profile describes the key characteristics of working life in Germany. It aims to provide the relevant background information on the structures, institutions, actors and relevant regulations regarding working life.
This includes indicators, data and regulatory systems on the following aspects: actors and institutions, collective and individual employment relations, health and well-being, pay, working time, skills and training, and equality and non-discrimination at work. The profiles are systematically updated every two years.
‘Individual employment relations’ refers to the relationship between the individual worker and their employer. This relationship is shaped by legal regulation and by the outcomes of social partner negotiations over terms and conditions. This section looks at the start and termination of the employment relationship and entitlements and obligations in Germany.
Requirements regarding an employment contract
Employers and workers conclude employment contracts (Arbeitsvertrag), meaning that the employer is in the position of giving the worker orders and that the worker is in a dependent position. Self-employed workers or freelancers conclude contracts to deliver work (Werkverträge) or to provide services (Dienstverträge) and are covered not by labour law but by the Civil Code.
The minimum age requirement for entering an employment contract is 13 years. Children aged 13 to 15 years may conclude an employment contract with their parents’ consent. The contract can be concluded in writing or verbally but has to be laid down in written form within two weeks from the starting date of the work. The contract has to consider a given collective agreement or work agreement.
Dismissal and termination procedures
The Dismissal Protection Act (Kündigungsschutzgesetz) covers workers who have an employment contract with an employer for more than six months. Workers employed in establishments with up to 10 workers are not covered (small enterprises have been excluded since 2004).
Workers can be dismissed for personal reasons (voluntarily), for reasons of conduct or for business reasons. In the case of business reasons, the dismissal is subject to selection based on social criteria if more than one worker is affected by the planned dismissal. This means that, when several comparable jobs are at risk, older workers, workers with the longest tenure and workers with family obligations or with a significant disability have the best chance of not being dismissed.
Parental, maternity and paternity leave
In 2017, the federal government amended occupational health and safety regulations, merging the Law Protecting Mothers (Verordnung zum Schutz der Mütter am Arbeitsplatz) with the Maternity Protection Act (Mutterschaftsschutzgesetz, MuSchG). The new MuSchG was extended to cover young women in vocational training, internships or training for a qualification; in addition, evening work (20:00–22:00) was liberalised on the condition that women apply for permission to work and that the public authorities give permission within six weeks of the application.
In 2014, an amendment to the parental allowance scheme (Elterngeld) was enacted (starting 1 January 2015). The new scheme (Elterngeld Plus) aims to reduce the proportion of mothers staying at home for up to three years and to promote a double-earner model. It includes incentives for mothers to take up part-time employment and for fathers to reduce working time and to take a greater part in childcare.
Statutory leave arrangements
| Maternity leave | |
| Maximum duration | Eight weeks of pre-natal leave; 12 weeks of pre-natal leave if the child has a disability. Post-natal maternity leave is considered to be part of parental leave (see below) |
| Reimbursement | 100% |
| Who pays? | The employer |
| Legal basis | Articles 3 and 5 of MuSchG |
| Parental leave | |
| Maximum duration | Parental leave is available for a maximum of three years. Since July 2015, parental leave can be taken in three blocks without the employer’s consent: two of the blocks can be taken between the third and eighth years of the child’s life and can last up to two years (previously this could only be for 12 months). The employer may refuse an application for a third block of parental leave between the third and eighth years of the child’s life only for urgent operational reasons. Parental leave allowance is paid for 14 months (if fathers choose to take two months of parental leave) |
| Reimbursement | 67% of net earnings. Threshold: minimum of €300, maximum of €1,800 |
| Who pays? | Social security system |
| Legal basis | Act on Parental Leave Allowance and Parental Leave (Bundeselterngeld- und Elternzeitgesetz) |
| Paternity leave | |
| Maximum duration | There is no paternity leave regulation in place. Fathers are covered by the parental leave regulation |
| Reimbursement | n.a. |
| Who pays? | n.a. |
| Legal basis | n.a. |
Sick leave
Under the Act on the Continuing of Remuneration (Entgeltfortzahlungsgesetz) of 1994, in terms of sick leave, the employer is obliged to pay the worker’s full wage for up to six weeks. The worker must have been employed for a minimum period of at least four weeks and on the third day of sick leave has to provide proof of their incapacity to work from a medical doctor. After six weeks, health insurance covers 70% of the gross salary in the case of long-term sickness (under the Social Code, Book V, Sozialgesetzbuch V). Termination of an employment relationship while a worker is on sick leave is prohibited unless unlawful conduct is detected.
Retirement age
In 2007, the statutory retirement age was raised from 65 to 67 years. There are no gender differences. To smooth the transition to the new retirement age, the retirement age has been progressively increasing for workers born between 1947 and 1963.
In 2014, retirement reforms were enacted. Under the new regulation, workers with 45 years of contributions to the statutory retirement scheme may retire at the age of 63 years (if they were born in 1953 or earlier) or up to 65 years (if they were born in 1963). In practice, the regulation covers predominantly male manual workers. Women born before 1952 with extended phases of non-employment because of family obligations may retire at the age of 60 years if they provide proof of 15 years of social security coverage and 10 years of paid contributions to the retirement scheme after their 40th birthday.
