Contracts in Germany

Overview by

The Active Population in Figures

Main Indicators 2006
Labor Force
Labor Force (Annual Growth, %) -
Rate of Activity (%) -
Unemployment Rate (%) 10.8

Source: Bundesagentur für Arbeit (German only)


Management of Human Resources



Method of Recruitment
By adverts in the national press (FAZ, die Zeit), in the regional press, by head hunters (Michael Page, Manpower, Arbeitsagentur), by job centers.
Recruitment Agencies
Job centers.
Recruitment Websites
Job scout
National Daily FAZ

The Contract

Type of Contract
The work contract is usually open ended with a trial period which may be up to 6 months. The contract may also be fixed term; it can be renewed 3 times maximum, and for a maximum duration of 2 years.
Breach of Contracts
  • Dismissals
Termination by the employer can be done under different conditions:
- Redundancy either individual or of a group
- Termination because of professional misconduct, absenteeism or end of seasonal employment
  • Other Possible Methods
- Because of reasons tied to the person.
Labor Laws
Labor Law
Labor Law
Law on the work hours

Dispute Settlement


Conciliation Process

Cases of Dispute
Work Conditions, unfair dismissal, sexual and moral harassment, verbal violence and physical violence
  • Procedure
Labor law (first section), Labor law (second section)

Judicial Structures

  • Legal Framework
A social conflict is deemed to be present when a collective labor agreement has expired or when salary negotiations have failed. For more information, refer to the Labor law
  • Competent Legal Body
See the Labor law (first section and the second section)

Social Partners

Social Dialogue and Involvement of Social Partners
Unions are strong in Germany, however, the eastern side is more union orientated than the west.
Unionization Rate
22.3% in 2002
IG Metall
Regulation Bodies
Ministry of Agriculture
Deutscher Bauernverband

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