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SALARY PAYMENT IN Euro (EUR, €)
CONTRACT LANGUAGES German / English
PAYROLL TAX 20.66%
PAYROLL CYCLE Monthly
TIME TO HIRE 48 hours
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In Germany, in the first 6 months of employment, a valid reason to terminate an employee is not needed. However if they have been employed longer than 6 months then termination needs to be either business related or individual related (like long term illness without foreseeable recovery, poor performance, and theft or fraud). If it is a business related termination it is likely that the employee will receive severance payment.
You cannot terminate an employee for unfair reasons after 6 months of employment. There must be either a business related issue or an individual related issue.
In Germany, dismissal letters need to be presented and signed manually by both parties. There must be a written notice on paper. This means that email will not suffice.
In Germany, resignation letters need to be signed manually by both parties. This means that email will not suffice.
Your business can easily hire employees in Germany without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
Because Germany does not offer at will termination options to employer, it can be difficult to terminate an employee in Germany. However, termination in Germany is not unreasonable. If you have a fair reason to terminate an employee then it is possible.
If you are to terminate employment in Germany, then a legal reason for doing so (i.e. business or individual related) is highly recommended. In the case of an unfair termination in Germany there can be legal punishment and a higher severance payment due to that employee.
If an employer wants to terminate a protected class of employee (i.e. pregnant employee), then it is nearly impossible to do so.
You can mitigate termination risks by partnering with a firm like Horizons, who has employment experts on the ground in Germany and can advise you on best practices in cases of employment termination should you need to do it.
