Germany
Germany, known for its strong economy, high quality of life, and innovative business environment, is an attractive destination for international expansion. TCWGlobal simplifies the process of hiring in Germany, offering comprehensive solutions for building your contingent workforce.
With a population of over 83 million people, Germany boasts a highly skilled and educated workforce. From the historic streets of Berlin to the picturesque countryside of Bavaria, the country offers a unique blend of culture and innovation.
When expanding your business into Germany, compliance with local regulations is essential. TCWGlobal, as your employer of record, ensures that your contingent workforce is fully compliant, allowing you to focus on your business objectives.
In addition to compliance, TCWGlobal provides personalized services and benefits for your contingent workforce. Whether you require assistance with payrolling management, benefits administration, or any other aspect of HR, our team is dedicated to supporting you.
Partnering with TCWGlobal guarantees a seamless and successful expansion into Germany. Our expertise and local knowledge make us the ideal partner for businesses looking to establish a contingent workforce in this dynamic market.
There are no specific worker classifications in Germany.
A fixed-term contract is possible if justified on objective grounds such as a temporary increase in work volume or substitution of an employee during parental leave. Without an objective ground, the fixed-term contract is limited to a maximum of two years. If work continues beyond the end of the fixed-term, the contract will be deemed indefinite.
Probationary periods are permitted in Germany for up to six months. During the probationary period, the employment contract can be terminated by either party with two weeks' notice.
In Germany, Workers recognize 9-13 public holidays, based on the state in Germany where they are performing work. Holidays include New Years Day, Good Friday, Easter Monday, Labor Day, Ascension Day, Whit Monday, the Day of German Unity, and Christmas Day. If a holiday falls on a Sunday, a day in lieu must be given within 8 weeks that is a weekday.
Most Workers on a five-day working week are entitled to at least 20 days of paid vacation per year. Workers on a six-day working week are entitled to 24 days. Generally, and absent an unusual circumstance, vacations must be taken during the calendar year. Companies must notify workers if their vacation leave is to be forfeited at the end of the calendar year. If notice of forfeiture is not provided, the vacation may carryover through March 31 of the following year.
After four weeks of service, Workers are entitled to six weeks of statutory sick pay.
Workers must not work more than 8 hours per day (based on six working days per week) or 48 hours per week. The daily maximum may be extended to 10 hours per day as long as the average over six months does not exceed 8 hours per day. Work on Sundays is generally prohibited. Sunday work, holiday work, or overtime is generally compensated by a corresponding amount of time off in the following two weeks. In addition, Workers are entitled to a minimum of 11 uninterrupted hours of rest between working periods.
OT is governed by the contractual agreement in Germany.
There is no requirement to provide a mandatory bonus in Germany.
Except in cases of serious or gross misconduct, Workers must be given advanced written notice prior to termination. The amount of notice varies based on years of service ranging from two weeks to seven months. Payment in lieu of notice is not permitted. To terminate a worker for cause based on performance, they must be provided at least three written warnings that their performance is poor.
There are no specific rules regarding a worker's resignation.
Companies with five or more workers may have a Worker's Council that needs to be consulted on various issues involving workers.
18 Month Rule: Workers have an 18 month cap on engagements with a specific client. However, after following any necessary termination procedures and payments including severance, and a break of at least 3 months and 1 day, a worker can return to an engagement with the same client again. In some situations, the worker may be transferred to another entity of the same client, however each circumstance is unique, and additional information and details would be necessary to ensure this is compliant. The 18 month rule would also apply to the engagement with the new entity.
Unemployment Insurance - After working 12 months in Germany, workers are entitled to receive unemployment benefits in the amount of 60-70% of the previous average income from the Federal Employment Agency for 6 months. Accident Insurance - covers all costs for medical treatment for accidents on the way from and to work and while at work.
Health care is required for all workers. Workers must register with a public insurance provider. The company pays for 50% of the health insurance cost.
TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.
When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.
