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Life & Law · Module 2 of 6

Employment contracts and labour law

Full-time, part-time or a minijob: at work you have clear rights – from the minimum wage and paid holiday to continued pay when you are ill. Here you'll find the most important rules in plain words, with the matching sections of the law and a quiz to think along.

The six modules

  1. Everyday contracts (BGB)Online
  2. Employment contracts and labour lawYou are here
  3. Tenancy agreements and tenancy lawOnline
  4. Family and custodyOnline
  5. Jobcenter, objections and disabilityOnline
  6. Traffic and insuranceOnline

Module 2: Employment contracts and labour law

Eight cards on the moments that matter at work – from your first day to your reference. Each card gives you the German legal term, so you recognise it in contracts, letters and conversations.

1Employment contract and written statement

An employment contract is valid even when agreed orally. But the employer must give you the essential terms in writing: your duties, pay, working hours, holiday and notice periods. You get the details on pay and working hours on your first day at the latest, the rest within one month at the latest. Since 1 January 2025, text form such as an email that can be saved and printed is usually enough. In some sectors, for example construction, paper remains mandatory. Keep this statement safe.

German term: NachweispflichtLaw: § 611a BGB · § 2 NachwG

2Probation

A probationary period may last at most six months. During this time either side can give two weeks' notice, to any day and without giving reasons. Even during probation, a dismissal needs paper and a signature. You have general protection against dismissal after six months with the employer, if more than ten people work there.

German term: ProbezeitkündigungLaw: § 622 Abs. 3 BGB · § 1 KSchG

3Working hours, breaks and minimum wage

The statutory minimum wage applies to every working hour – for almost all employees aged 18 and over, including minijobs and temporary help. If you work more than six hours, you are entitled to a break of at least 30 minutes; for more than nine hours, 45 minutes. The break can be split into blocks of at least 15 minutes each.

German term: Ruhepause, MindestlohnLaw: § 4 ArbZG · § 1 MiLoG

4Calling in sick and continued pay

If you are ill, tell your employer immediately, ideally before work starts. If the illness lasts longer than three calendar days, you need a doctor's certificate; the employer may ask for it earlier. For people with statutory health insurance, the practice sends it electronically to the health insurer (eAU). After four weeks in the job, your employer keeps paying your full wage for up to six weeks; after that, the health insurer pays sickness benefit (Krankengeld).

German term: Entgeltfortzahlung, eAULaw: §§ 3, 5 EFZG

5Paid annual leave

With a five-day week you are entitled to at least 20 paid days of holiday a year, with a six-day week to 24. This also applies pro rata to part-time work and minijobs: if you work two fixed days a week, you have at least eight paid days of holiday. You have the full entitlement after six months with the employer. If you fall ill on holiday and have a doctor's certificate, you get those days back.

German term: ErholungsurlaubLaw: §§ 3, 4, 9 BUrlG

6Dismissal: only on paper, court action within three weeks

A dismissal by WhatsApp, email, text message or fax is invalid. It needs paper with an original handwritten signature. If you think a dismissal is unfair, you must file a claim at the labour court (Arbeitsgericht) within three weeks of receiving it. If you miss the deadline, the dismissal is generally treated as valid. You can have the claim recorded free of charge at the court's legal application office (Rechtsantragstelle).

German term: Schriftform, KündigungsschutzklageLaw: § 623 BGB · §§ 4, 7 KSchG

7Be careful with termination agreements

With a termination agreement (Aufhebungsvertrag), you and the employer end the employment by mutual consent. You give up your protection against dismissal, and the employment agency usually imposes a suspension of unemployment benefit of up to twelve weeks. So never sign on the spot: take the draft with you and get advice first. A termination agreement also needs paper and both signatures.

German term: Aufhebungsvertrag, SperrzeitLaw: § 623 BGB · § 159 SGB III

8Employment reference

When you leave, you are entitled to a written reference. On request, it also assesses your performance and conduct (qualified reference). It must be truthful and benevolently worded. Many phrases are coded grades: “always to our fullest satisfaction” means very good, “made an effort” means a poor assessment. You can ask for an interim reference if there is a good reason, such as a new manager.

German term: Qualifiziertes ArbeitszeugnisLaw: § 109 GewO

Quiz: test your knowledge

Twelve questions from working life. Tap an answer – then you'll see the explanation with the matching section of the law.

  1. Question 1On Sunday evening your boss writes to you on WhatsApp: “You're fired as of tomorrow.” What applies?

  2. Question 2You receive a written dismissal that you think is unfair. How long do you have to file a claim for protection against dismissal?

  3. Question 3In your minijob you regularly work on two fixed days a week. Are you entitled to paid holiday?

  4. Question 4You are ill for five days during your holiday and have a doctor's certificate from day one. What happens to those days?

  5. Question 5Your employer puts a termination agreement on the desk and wants you to sign it right away. What is the biggest risk?

  6. Question 6You have agreed a six-month probationary period. What notice period applies during this time?

  7. Question 7You have worked at a company for six months and are signed off sick for four weeks. Who pays your wages?

  8. Question 8You work eight hours a day. What is the minimum break you are entitled to?

  9. Question 9At the end of the month your boss demands 15 hours of unpaid overtime. Your contract says nothing about it, and there is no emergency. Do you have to?

  10. Question 10A reference says: “Er hat sich stets bemüht, den Anforderungen gerecht zu werden” (he always endeavoured to meet the requirements). What does it mean?

  11. Question 11You are offered a fixed-term contract without an objective reason. How long may it run at most?

  12. Question 12Your wages were due at the end of the month. On the 15th of the next month there is still nothing. What is a good first step?

What you can do now

  • Ask for the written statement of your working conditions and keep it together with your contract.
  • Note your working hours, breaks and overtime briefly every day, for example in the calendar on your phone.
  • When you are ill, let your employer know immediately before work starts and keep a dated record of it.
  • If you are dismissed, note the day you received the letter and put the three-week deadline in your calendar.
  • Take a termination agreement home and sign it only after getting advice.

Personal advice

Trade union (Gewerkschaft): members get legal advice and legal representation all the way to the labour court. You'll find an overview of the unions at the German Trade Union Confederation (dgb.de, in German).

Legal application office at the labour court (Rechtsantragstelle): there you can have a claim against dismissal or for unpaid wages recorded free of charge. At first instance you can represent yourself.

Faire Integration: advice for migrants and refugees on pay, working hours, dismissal and accommodation – free of charge and in many languages (faire-integration.de).

Sources

This guide gives you general orientation on German law. For your specific case, an advice centre or a lawyer is the right place to go.

When the founder gives the company his name

There's a group of companies in German – these are sort of medium-sized companies that are already a bit older, that have been on the market a bit longer – that simply have the name of the owner and founder, 99% or 99.9% of the time a man, as their name. We still have that in part with American companies, with British companies too. Back then that was the usual thing, that you simply took the name – Dell, for example, and there are loads of others. But lately, start-ups create a name that the target group can also identify with, so they use creativity.

Spedition Zufall and Autohaus Gegner

And in German there are just some really funny family names that then get used as company names – like Zufall, for example. Now that's funny! I think Zufall is a freight forwarder. I mean, how can I call my freight company “Zufall” – “Coincidence”? Well, I'd have to be very, very unimaginative, or else have a certain kind of humour. Or there's Autohaus Gegner – it's a local company in Saxony, I think, but then again pretty big, and the dealership is guaranteed to belong to Mr Gegner. And well, of course I find it funny if my company is called “Gegner” – “Opponent”.

I do think you can put these company names under the microscope and explain how they would be rendered in other languages and how that comes across to an English-speaking or Russian-speaking audience. So what do you think?

My favourite: Nothnagel – and why I named my company Autotransfer.jetzt

So my favourite so far among the funny company names is Nothnagel. A truck came towards me recently, and it said “Nothnagel” on it – spelled with a th, of course – and I thought: now that's interesting. A company that's obviously also in logistics in the broadest sense calls itself Nothnagel – “Notnagel” is German for a last resort, literally an emergency nail. And what is it actually about? Recycling. So something gets recycled, and in case it can't be recycled, there's still the last resort – or that's roughly how you have to picture this story.

Yes, that's why I named my company Autotransfer.jetzt back then. Now of course you could argue: what good did that do you? And the people who'd put it that way would of course be right. So a company name that describes something and is easy to remember is of course far from a guarantee of the company's success.

Nevertheless, I do think it's also in the interest of the customers and the target group when founders think up a name that the target group, the community, can then perhaps identify with. Why should the target group identify with the name “Nothnagel”? And of course many people will now argue and say: Nothnagel isn't about the so-called B2C, business-to-consumer market. That may be, but it's still a company in the public eye, and they advertise, and civilians too – private individuals, that is – read the name and then react to it accordingly.

What “Zufall”, “Gegner” and “Nothnagel” mean in other languages

Translated literally, the three names mean:

NameEnglishRussianUkrainian
Zufallcoincidence, chanceслучайность, случайвипадковість, випадок
Gegneropponent, rivalпротивник, соперниксупротивник, суперник
Nothnagel („Notnagel“)last resort, stopgapкрайнее средство, запасной варианткрайній засіб, запасний варіант

In German you hear the joke straight away: you expect a freight company to get your goods there reliably – and it's called “Coincidence”. A car dealer wants to win customers over – and it's called “Opponent”. Translated literally, you'd get “Coincidence Logistics” and “Opponent Motors” in English, «Экспедиция „Случайность“» and «Автосалон „Противник“» in Russian, «Експедиція „Випадковість“» and «Автосалон „Супротивник“» in Ukrainian. And Nothnagel has the “Notnagel” in it, the last resort when nothing else works – literally “Last Resort Recycling”, in Russian «Переработка „Крайнее средство“», in Ukrainian «Переробка „Крайній засіб“».

Company names, though, are usually not translated, just transliterated into other scripts: in Russian and Ukrainian, Zufall becomes “Цуфаль”, Gegner “Гегнер” and Nothnagel “Нотнагель”. For English-, Russian- or Ukrainian-speaking customers that's a completely neutral name – the joke stays in German. It works the other way round, too: hardly anyone in Germany knows that in English a “dell” is a small wooded valley.