Germany Employment Laws

Employment laws in Germany must not violate the European Union general guidelines for employment since Germany is a full-fledged member of the European Union. Nonetheless, EU member states also have flexibility to enact laws governing employment with their countries. Freedom of movement with the European Union also means that a worker from one of the member states may enter the other European Union countries and may legally remain there for three months. If such immigrants finds employment in that country, then the country must grant the necessary employment documentation required.

  1. History of Labor and Employment Laws in Germany

    • Germany recruited many workers from many non-EC member states during the '60s, mostly from states like Greece, Morocco, Portugal, Spain, Turkey and Yugoslavia. Part of the reason was because of perceived shrinkage in German labor force. Since 1968, Germany agreed that Italians and other EC countries would have freedom of movement rights after January 1968. The fall of the Berlin wall in the '80s and the unification of East and West Germany have changed the existing employment laws and dynamics, and new German laws have restricted the guest worker program and other liberal employment policies in Germany

    Highly Skilled Worker Law (Residency Law)

    • German employment laws have a provision for admitting highly skilled and talented workers into Germany. Such workers may also be entitled to permanent residency status if they can prove to the German authorities that they are indeed highly qualified. Some examples of highly skilled workers include scientists, scholars, specialists with unique qualifications or managers. The law requires such employers to prove they can earn at least two times and slightly more than the current ceiling for social security contributions. (Currently the ceiling is at 41,850 euros).

    Green Card Holder Law

    • Many argue that the "Green Card Law" in Germany resulted from the poor performance of Germany in 2000 European soccer competitions. Chancellor Schroeder introduced this law allowing foreigners who have "Green Cards "to migrate and work in Germany for up to five years. Such persons are, however, permitted to work within the IT and software sectors. This employment law marked a significant change in German immigration laws. Some argue that the better performance of Germany in 2002 World Cup when Germany reached the finals was the direct consequence of this law.

    German Temporary Agreement Laws

    • German Temporary Agreement Laws mandates that first an employment agreement must be made in writing. This law resulted from a June 23, 2004, ruling decision rendered by the Federal Labor Court. This agreement must also specify the duration of the employment. Other aspects of the temporary agreement for temporary work may not be in writing. A German employer does not have to make a case for temporary agreement work, if such work does not exceed a period of two years. Unless employers comply with this requirement for longer temporary work that exceeds two years, such employee may enjoy the statutory protection against being terminated.

    Right to Work Part Time

    • In 2001, the German legislature passed a law which authorizes employees to demand their right to work on part-time basis. But by the same token the law also authorizes the employer to deny such request based on operational reasons. A new court ruling handed down on December 9, 2003, by the German Federal Labor Court further said that an employee who requested for part-time work could not force the employer to hire another full-time employee if a part-time employee was not available.

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