German Labor Law Basics: Leave, Sick Pay, Overtime, and Dismissal Protection

Germany’s labor laws give employees more protection than most other countries. Knowing your basic rights makes a real practical difference — especially if you are new to the German job market and unsure what is normal.

Annual Leave

The legal minimum is 20 days per year for a 5-day working week (Bundesurlaubsgesetz). Most employment contracts in Germany give 25–30 days. Leave is earned pro-rata — if you start a job on July 1, you accrue half a year’s entitlement by year end. Your employer cannot require you to forfeit unused leave without compensation at the end of your contract.

Sick Leave

You do not need a doctor’s certificate for your first three days of illness. From day four, most employers require an Arbeitsunfähigkeitsbescheinigung (sick note) from a doctor. During the first six weeks of any illness episode, your employer continues to pay your full salary. After six weeks, your statutory health insurer takes over and pays Krankengeld (sick pay) at approximately 70% of your net salary.

Overtime

German law does not give a general right to paid overtime — whether overtime is compensated depends on your individual contract. Most white-collar contracts include clauses stating that some overtime is included in your salary. Read your Arbeitsvertrag carefully: how many overtime hours are included, and is excess overtime paid, compensated with time off, or simply uncompensated? Ask before you sign.

Dismissal Protection (Kündigungsschutz)

Once you have worked at a company with more than 10 employees for six months or more, ordinary dismissal requires a legally valid reason (operational reasons, conduct, or personal capability). During the first six months (Probezeit), either party can terminate with two weeks’ notice and no reason given.

Notice periods after the Probezeit follow the legal minimum scale: 4 weeks after the first two years, escalating to 7 months after 20 years. Your contract may specify longer periods.

For Students and Part-Time Workers

These rights apply to Werkstudent contracts too. If an employer terminates your working student contract without notice or withholds your final paycheck, you can file a claim with the Arbeitsgericht (labor court). Filing costs nothing in Germany — there are no court fees for employees in the first instance.

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