Thriving in Transition: Part 1 – Know Your Rights as an Employee

Expats learning about employee rights in Germany at a coaching session
Article by Stephen Nock— Did you know that Germany offers some of the strongest worker protections in Europe? For foreigners, the opportunity to work in Germany often comes with attractive benefits, many of which are more robust than what they’re used to in their home country.

1. Know Your Rights as an Employee

Overview

According to Expat Insider, Germany nearly makes the top 10 in the Working Abroad Index (12th place), and ranks 4th globally in Salary & Job Security. This contrast is striking when you consider that 52% of expats find it difficult to deal with local authorities, compared to just 39% globally.

In other words: There’s a lot of support here, but accessing it isn’t always intuitive. Especially when the systems are unfamiliar and the language isn’t your own.

As a coach working with expats in transition, I often hear people say they wish they’d known earlier what they were entitled to or how to ask for help. WelcomeBerlin is to bridge that gap, so you can feel more confident about your rights and the resources available to you in feeling settled and secure abroad.

2. What You Should Know as an Employee in Germany

Whether you’re new to Germany or navigating changes in your employment situation, here are four key areas to help you make the most of your rights.

Employment Contracts Are Binding —and Important

Like all contracts in Germany, the employment contract is taken seriously. It stipulates conditions such as your vacation, probation period, termination rights and protections, working hours and location, and they’re usually in German.
—A few key factors to have in mind:

  • Signing the contract means committing to the terms. Have the language reviewed if you’re unsure what you’re agreeing to.
  • A probation period (Probezeit) of up to six months is common. During this time, both employer and employee can terminate the contract with only 2 weeks’ notice, no reason required. After that, the standard dismissal protection laws (Kündigungsschutzgesetz) typically apply. Check your contract, and talk to your manager during the probation period to understand how the company will assess your performance.
  • Any changes to your responsibilities, working hours, location, and other job-related factors usually require contract updates. Make sure to get written copies of any changes.

Paid Leave and Rest Are Legally Protected

In addition to public holidays, full-time employees must be granted a minimum of 20 vacation days, though many employers offer 25-30. Following a 2022 court ruling, employers are also obligated to track and compensate overtime, either with pay or time off.

—What else to know about time off:

  • Work hours are capped at 10 hours of work per day, with a minimum of 11 hours rest required between shifts. 
  • Sick leave (Arbeitsunfähigkeitsbescheinigung, commonly referred to as Krankschreibung) can be issued by a doctor and is protected by medical confidentiality. For severe illness, up to six weeks can be paid at full salary with a doctor’s note; after that, health insurance may cover ~70%. While it’s not something to take for granted, when you’re under the weather, you can rest knowing your job will be waiting for you when you return. 
  • Combining paid holidays with public holidays that land mid-week can be a convenient strategy to maximize time off. Review the public holiday calendar when planning your time off, which many Germans do months, if not a full year, in advance.

Germans love insurance, and there are two types of insurance that can be particularly valuable for employees:

  • Rechtsschutzversicherung (Legal Insurance) – optional
  • Arbeitslosengeld (Unemployment Insurance) –  mandatory

Though unrelated to work, you’ll very likely want to get a basic Haftpflichtversicherung (liability insurance). In Germany, private liability is a nearly-universal form of insurance to protect you in the case you accidentally damage someone’s property.

Legal Insurance Can Offer Protection and Peace of Mind

Legal Insurance (Rechtschutzversicherung) covers the costs of legal representation if disputes arise, whether work-related or not. If you’re terminated, having legal insurance can reduce the cost of reviewing your rights and help you avoid signing away benefits under pressure. —Quick tips:

  • If relations with your employer (or landlord, for example) are tense, it may not be too late to sign up for Rechtschutzversicherung with a small monthly or annual payment.
  • Don’t sign termination agreements without consulting an expert. You may be entitled to more than you’re offered.

Unemployment Support Is Strong —If You Know Where to Look

All employees in Germany pay into the federal unemployment insurance system. If you’ve worked in Germany and paid into the system for at least 12 months, you’re entitled to receive a percentage of your salary and support to get back into the job market. (Note: benefits can be delayed if you quit voluntarily.) 

—Unemployment can be an opportunity, as well. Here’s what foreigners should bear in mind when facing unemployment: 

  • In the first year, this is an earned insurance-based benefit (SGB III), not a welfare benefit, and thus does not automatically endanger your residence permit. However, you must still comply with visa conditions (e.g. time limits to find a new job).
  • If you’re on a visa or work permit, make sure you’re communicating separately with the Agentur für Arbeit (BfA), and the LEA/Foreigner’s Office. They may have different timelines for what they expect from you and how long you can stay while unemployed. For example, while you may be entitled to 12 months of unemployment pay, the LEA may limit you to 3-6 months to stay in Germany without a job.
  • From the perspective of the Agentur für Arbeit, your job is to find a job, and they want to support you to be attractive in the job market. Your advisor (Berater) can issue a coaching voucher (AVGS) that covers the cost of professional coaching, career counseling, or training to help jobseekers re-enter the workforce. Ask me how to request this.
  • If you’re interested in entrepreneurship, you may qualify for the Gründungszuschuss, a grant that offers financial support similar to unemployment benefits while starting a business. I can also help you navigate the application process.

3. Trust Your Next Step

Take action

Germany’s worker protections are among the best in the world, but knowing how to access them can make all the difference. Whether you’re reviewing your first contract, facing an unexpected job change, or considering your next career move, support is available.

—If you’re curious to get support tailored to your situation, be sure to check the experts in the WelcomeBerlin Marketplace. Alongside my own near-decade navigating the German system as an outsider, I’ve coached dozens of expats through transitions like these, helping them not only understand their rights, but reclaim confidence, clarity, and direction. It helps to have support when living outside your comfort zone.

Author: Stephen Nock —ICF ACC-certified coach, certified yoga instructor, and grew professionally working in tech start-ups in the US and Germany. Find him on the WelcomeBerlin Marketplace.

Picture of Stephen Nock

Stephen Nock

Stephen Nock is a certified coach based in Berlin, where he moved from the US in 2017. After 12 years working in global tech start-ups, Stephen supports individuals and workplace teams navigating change and uncertainty to get back to calm decision making. In his free time, he enjoys baking, exercising outdoors, and practicing yoga. Contact him to explore team-building and work/life coaching opportunities, whether AVGS-funded or not.

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