Hire in Germany
Access Europe's largest economy without a local entity. Vectis navigates Germany's strict labour law, Works Council obligations, social security system, and CBA requirements — compliantly, in 48 hours.
Quick Facts
German Employment Law Guide
A practical overview of Germany's employment law, social security system, and compliance requirements for international employers.
Employment Contracts
- ✓Written contracts mandatory under Employment Evidence Act (NachwG)
- ✓Indefinite-term contracts are the norm
- ✓Fixed-term contracts require objective justification after 2 years
- ✓Collective bargaining agreements (Tarifverträge) may apply by sector
- ✓Probation period up to 6 months
Working Hours & Overtime
- ✓Standard: 8 hours/day, 40 hours/week
- ✓Maximum: 10 hours/day with compensation within 6 months
- ✓No statutory overtime premium rate — set by contract or CBA
- ✓Night work (23:00–06:00) requires premium pay
- ✓Works Council must be consulted on overtime policy changes
Leave Entitlements
- ✓Minimum 20 days annual leave (5-day week) by law
- ✓Most employers offer 25–30 days
- ✓6 weeks statutory sick pay at full salary (Entgeltfortzahlung)
- ✓14 weeks maternity protection (6 pre + 8 post birth)
- ✓3 years parental leave per child (Elternzeit)
Wages & Pay Structures
- ✓Statutory minimum wage: €12.41/hour (January 2024)
- ✓Annual Christmas bonus (Weihnachtsgeld) common but not mandatory
- ✓Holiday pay supplement common in many sectors
- ✓Sector-specific CBA minimums often exceed statutory floor
- ✓Annual pay review and inflation adjustments expected
Social Security Contributions
- ✓Total employer social costs: ~20% of gross salary
- ✓Pension Insurance (RV): 9.3% employer share
- ✓Health Insurance (KV): ~7.3% employer share
- ✓Unemployment Insurance (ALV): 1.3% employer share
- ✓Long-term Care Insurance (PfV): ~1.7% employer share
Termination & Protection
- ✓Dismissal Protection Act (KSchG) applies after 6 months & 10+ employees
- ✓Notice: 4 weeks to 7 months depending on tenure
- ✓Social selection criteria required for redundancies
- ✓Works Council must be informed before any dismissal
- ✓Severance not legally required but often negotiated (0.5 month/year)
How to Hire in Germany with Vectis
From offer letter to first payroll — we manage every step of German employment compliance.
Share the details
Role, salary, location, and start date. We assess CBA applicability and the correct social insurance classification.
We draft the contract
German-law employment agreement fulfilling all NachwG documentation requirements, in German and English.
Onboard & register
Social security number (SV-Nummer) verification, health insurance enrollment, and Lohnsteuer registration with the Finanzamt.
Run payroll & stay compliant
Monthly Lohnabrechnung with all social security deductions, Kurzarbeit support where needed, and annual Lohnsteuerbescheinigung.
“Germany was the market we were most worried about — the Works Council rules, the CBA complexity, the strict dismissal protections. Vectis handled all of it. We hired 8 engineers in Berlin in under a month.”
Public Holidays in Germany
Germany has 9 national public holidays plus additional state-specific holidays (Bavaria has the most). Vectis tracks state holidays for every employee.
Germany Hiring FAQs
Common questions about employing staff in Germany.
Ready to hire in Germany?
Vectis is your Employer of Record in Germany. We handle the complexity of German labour law — from KSchG dismissal protection and Works Councils to CBA compliance and Sozialversicherung.
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