German Employment Law For Foreigners

Germany, the economic powerhouse of Europe, beckons ambitious professionals with its innovative industries, high living standards, and rich cultural tapestry. If you're a foreign national considering moving to Germany to work in Germany (arbeiten in Deutschland), understanding German employment law for foreigners is crucial. 

 

How can a foreign national obtain a German work permit?


German Employment Law

According to German employment law for foreigners, obtaining a work permit (Arbeitserlaubnis) is essential for working in Germany if you're a non-EU citizen. The work permit you need will vary based on your citizenship, work type, and how long you plan to stay in Germany.

Short-term employment (up to 90 days):

  • Schengen Visa: A Schengen visa allows you to work in Germany for up to 90 days within 180 days.
  • Requirements:
    • Proof of qualifications and experience relevant to the job.
    • A job offer from a German employer.
    • Adequate financial resources for your stay.
    • Travel insurance that covers medical expenses.

Long-Term Employment:

  • Residence Permit and Work Permit: These permits are typically issued together for stays exceeding 90 days.
  • Requirements:
    • Proof of qualifications and experience relevant to the job.
    • A German job offer with a salary at least as high as the minimum wage.
    • Adequate funds to support yourself and your family during your stay in Germany.
    • Health insurance that covers medical expenses.
    • Proof of accommodation in Germany.

Key Considerations:

  • Visa Application Process: The process can be complicated and take a long time. It's a good idea to get help from an immigration expert.
  • Compliance: It's illegal to work in Germany without a valid work permit. Failure to do so could result in fines, legal problems, or a return to your home country.
  • Assistance: Consult with an immigration lawyer or employment expert to ensure compliance with regulations and streamline the application process.

Job Seeker Visa (Visum zur Stellensuche):

If you're actively a non-EU citizen looking for a job-seeker visa in Germany, you can apply for one (Visum zur Stellensuche). This temporary visa allows you to search for jobs in Germany for six months.

Requirements:

  • Sufficient Funds: You must demonstrate that you have enough financial resources to support yourself during your stay.
  • Health insurance is required.
  • Proof of Accommodation: You must provide evidence of accommodation arrangements in Germany.

What can you do with a work permit from Germany?

A German work permit allows you to pursue various employment options, including full-time, part-time, or freelance work.

Your residence card clearly defines the scope of your permitted activities, specifying the authorized position at your employer.

Strict Adherence:

It's crucial to note that you are only permitted to engage in the activities explicitly stated on your work permit. Any deviation, even within the same company (e.g., changing positions), requires prior authorization from the immigration authorities.

EU Blue Card Holders:

Since the November 2023 reform of the EU Blue Card, holders of this card have gained more flexibility. They can now change jobs without obtaining prior permission from the immigration authorities. However, it's essential to inform the immigration authorities of your new employment.

Understanding the scope of your work permit is essential to avoid legal complications and maintain compliance with German employment law for foreigners.

 

What does the German employment contract consist of?


German Employment Law

Your German employment contract (Arbeitsvertrag) is a legal document showing your job's rules and conditions. the details it includes according to the German employment law for foreigners include

  • Personal Information: Your name, address, and your employer's name and address.
  • Job Description: Clearly define your role, responsibilities, and work location.
  • Employment Duration: The start date and anticipated duration of the employment relationship.
  • Notice Period: The required notice period for both you and your employer to terminate the contract.
  • Compensation: Your salary, any additional payments, and payment frequency.
  • Working Hours: Agreed-upon working hours, including guaranteed minimum hours.
  • Vacation Days: The number of paid vacation days you are entitled to.
  • Collective Agreement: A reference to any applicable collective bargaining agreements.

Important Considerations:

  • Written Contract: Your employer is required to give you a written employment contract within one month of starting your job.
  • Language: While the contract may not be in your native language, you should have sufficient time to translate it before signing.
  • Copy of Contract: Obtain a copy of the signed contract for your records.
  • Seasonal Workers: If you're a seasonal worker, you can find a sample contract in the Download Center on the official website.

Terminating the Employment Relationship:

You or your employer can end your employment early, but you must follow the notice periods stated in the contract, according to German employment law for foreigners

. In some cases, you might be able to end the employment without giving notice.

  • Written Form: A written notice of termination, signed by both parties, is required to end the employment relationship.
  • Witness or Delivery: A witness or physical delivery of the written notice is required for validity.
  • Email Invalidity: Email notices are not considered valid written notices.

 

What are German working hours?


German Employment Law

German employment law for foreigners strongly emphasizes work-life balance and fair working conditions. While the standard working week is typically between 35 and 40 hours, specific regulations and factors can influence your working hours.

Key Points:

  • Individualized Contracts: The exact working hours between the employer and employee are outlined in the employment contract.
  • Sector-Specific Variations: Industry-specific collective agreements can establish different working hours for particular sectors.
  • Maximum Working Time: The maximum daily working time is 8 hours, leading to a maximum weekly limit of 48 hours.
  • Working Time Recording: Recent amendments require employers to record each working day's start, end, and duration to ensure compliance with labor regulations.
  • Overtime: While not legally mandated, overtime pay or time off in lieu is common practice for work beyond contractual hours.
  • Break Periods: There must be at least 11 hours between shifts. Night work has different rules and benefits.
  • Daily Breaks: Breaks of 30 minutes or 45 minutes are mandatory for shifts of 6-9 hours and 9+ hours, respectively.

Understanding these fundamental aspects of German working hours is essential for ensuring compliance with German employment law for foreigners and maintaining a healthy work-life balance.

 

What is Germany's income tax?


German Employment Law

German employees are subject to income tax (Einkommensteuer), with rates ranging from 0% to 45% as of 2024. The higher your income, the more taxes you'll pay, according to the German employment law for foreigners

The income tax rates are applied based on tax brackets. For example, individuals earning €15,000 would pay 0% tax on the first €11,604 and 14-24% on the remaining amount. The Federal Ministry of Finance provides an online income tax calculator for easy estimation.

Solidarity Tax Contribution (Soli):

In addition to regular income tax, many German employees pay a Solidarity Tax Contribution (Solidaritätszuschlag). This 5.5% surcharge is levied on income above certain thresholds. However, as of 2021, individuals earning less than €16,959 and couples earning less than €33,912 are exempt.

Purpose of the Solidarity Tax:

The Soli was introduced to fund German unification costs and address income disparities between former western and eastern states.

In Germany, what contributions are made to social security?


German Employment Law

German employees must contribute to social security, which helps fund programs like pensions, unemployment benefits, and disability insurance. According to German employment law, they also need health insurance for foreigners.

Foreign Workers and Social Security:

Foreign workers in Germany may be exempt from specific social security contributions if they stay for a short period (less than one year) and their home country has a social security agreement with Germany. However, long-term residents are generally required to contribute.

Contribution Rates and Income Ceilings:

The following social security contributions are mandatory for both employers and employees:

  • Pension Insurance (Rentenversicherung):
    • Total contribution: 18.6% of income
    • Employer pays: 9.3%
    • Employee pays: 9.3%
    • Income ceiling: €84,600 (€81,000 in new federal states)
  • Unemployment Insurance (Arbeitslosenversicherung):
    • Total contribution: 2.4% of income
    • Employer pays: 1.2%
    • Employee pays: 1.2%
    • Income ceiling: €84,600 (€81,000 in new federal states)
  • Health Insurance (Krankenversicherung):
    • Total contribution: 14.6% of income
    • Employer pays: 7.3%
    • Employee pays: 7.3%
    • Income ceiling: €84,600 (€81,000 in new federal states)
  • Long-Term Care Insurance (Pflegeversicherung):
    • Total contribution: 3.05% (3.4% for childless individuals over 23)
    • Employer pays: 1.525% (or 1.875%)
    • Employee pays: 1.525% (or 1.875%)
    • Income ceiling: €58,050
  • Accident Insurance (Unfallversicherung):
    • Employer pays: 1.14% on average
    • The employee does not contribute

Additional Employer Contributions:

Employers are also responsible for paying the following levies:

  • Umlage 1 (U1): Sick leave pay contribution
  • Umlage 2 (U2): Maternity leave pay contribution
  • Umlage 3 (U3): Insolvency benefit contribution

 

What is Germany's minimum wage?


German Employment Law

In Germany, a minimum wage is mandatory for all employees, ensuring no worker receives less than a specified hourly rate. The minimum wage was increased to €12.41 per hour on January 1, 2024. This is the amount you earn before taxes and deductions, according to the German employment law for foreigners

Piecework Rates and Pay Slips:

Your total earnings must not exceed the minimum wage, even if paid by the piece. Your employer must provide a pay slip detailing the tax deductions and any other deductions, such as housing costs.

Regular Adjustments:

The German minimum wage is regularly adjusted to reflect changes in the cost of living. For example, it increased to €12.82 per hour in 2025, as per the Fourth Minimum Wage Adjustment Ordinance.

Uniformity Across Ages:

Unlike some other countries, Germany's minimum wage is uniform across all age groups. There are no age-based exceptions or variations.

Key Points:

  • Mandatory Minimum Wage: All employees in Germany are entitled to at least the minimum wage.
  • Piecework Rates: Even if paid by the piece, your total earnings must meet the minimum wage requirement.
  • Pay Slips: Employers must provide detailed pay slips showing deductions.
  • Regular Adjustments: The minimum wage is periodically updated to reflect economic changes.
  • Uniformity: There are no age-based exceptions to the minimum wage in Germany.

 

Conclusion

Navigating German employment law for foreigners requires careful planning and understanding of the legal and cultural nuances. Understanding the critical information in this guide can improve your chances of a great career in Germany. Remember to seek professional advice from immigration lawyers and tax advisors to ensure you comply with all relevant regulations and make informed decisions.

FAQs

How much do foreigners earn in Germany?

In Germany, the average part-time worker's salary is €2,600 per month and €31,200 annually. For most international students studying in Germany, getting a part-time job is essential to their stay because it makes things run more smoothly. Additionally, it broadens their understanding of the workplace culture and social network.

 

What jobs are in high demand in Germany?

·       Engineers are highly in demand in Germany.

·       IT and Software Development. 

·       Marketing and Sales. 

·       Finance and Accounting. 

·       Civil Engineering and Architecture. 

·       Language and Related Jobs.

·       Nursing and Healthcare.

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German Employment Law For Foreigners
Marketing Team September 16, 2024
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