Employer of Record in Germany, Offered by Dhi ADT

Dhi ADT helps your business to enter into new markets, fast-track growth, and avoid the hassle of incorporating a new entity by taking care of all local tax laws, payroll processing, social contributions, and health insurance. With our Dhi ADT PEO and EOR Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing talent or speed to market and no more worrying about local laws, immigration visa and work permit services, tax compliance, or managing international payroll.  

Dhi ADT  takes care of everything in 30+ countries. For more details contact us about our Employer of Record in Germany.

Employment Laws in Germany

Capital: Berlin

Language: German

Currency: Euro (EUR)

Payroll Cycle: Monthly

Employment Contract: The terms of the employment are usually agreed on in a written employment agreement. Except for fixed-term employment and non-compete obligations (which must be in writing), verbal agreements are also permissible but are not recommended.

For indefinite-term contracts, there must be documentation showing evidence a of wet signature prior to the start date of the employee. 

Minimum Wages: The minimum gross monthly wage in Germany is € 2054 per month. 

Employer Taxes: Employer Taxes are approximately 21% - 24% of Gross salary. 

Working Hours: An average working week is considered to be from 38 to 40 hours. Workdays are typically eight hours and should not exceed 10 hours. There is a statutory maximum of 48 work hours as the weekly average in any six-month period. 

Annual Leave: Full-time employees in Germany are entitled to a minimum of 20 days of paid holidays per year,  based on a five-day working week, or 25, based on a six-day working week. 

Probation Period: In Germany, an employee must be informed (in writing) four weeks in advance of separation during the first two years of employment. After that, the notice period increases depending on the employment duration. 

Termination: In most instances, the Dismissal Protection Act will be applicable (once the employee is employed for  more than six months) and this act states a termination is only effective on the following grounds: 

- Conduct related (mal performance or misconduct) 
- Personal (such as a long-standing illness) or 
- Operational reasons.

 

Severance Pay: Even though there is no statutory severance in Germany, in practice, many employers and employees will agree on severance pay provisions to avoid court proceedings

National Holidays: 10 National Holidays 

1. New Year’s Day  
2. Good Friday  
3. Easter Monday 
4. Labor Day 
5. Ascension Day 
6. Whit Monday  
7. Corpus Christi 
8. Day of German Unity 
9. Christmas Day  
10. 2nd Day of Christmas