Understanding Working Time Regulations in Germany

Maximum Working Hours and Overtime Laws

As an international HR specialist, I often emphasize that Germany's labor laws, overseen by the Federal Ministry of Labour and Social Affairs (Bundesministerium für Arbeit und Soziales), set clear standards to protect employee rights. Employers must adhere to these regulations when hiring in Germany. Below, I outline the key points on working hours and overtime.

Standard and Maximum Working Hours

In Germany, the typical workweek spans five days, with eight hours per day totaling 40 hours. Legally, weekly hours cannot exceed 48, including overtime. In practice, employees might work up to 10 hours daily, but the average over 24 weeks must not surpass 40 hours. Breaks are mandatory: 30 minutes after six hours, which can be split into two 15-minute intervals, and 45 minutes if the day exceeds nine hours. Additionally, employees must have an uninterrupted 11-hour rest period between shifts. Work on Sundays and public holidays requires special approval, and planned overtime demands at least four days' notice to the employer.

Overtime Compensation

German law does not explicitly mandate overtime pay, but it's commonly addressed in employment contracts. For instance, contracts may include up to 15% of regular hours as compensated by the monthly salary, with any excess paid at a higher rate—often 1.5 times the normal wage, as per collective agreements. Alternatively, employers and employees can agree on time-off in lieu of payment. A case study from SailGlobal shows that multinational companies often use flexible arrangements, such as compensatory leave, to maintain compliance and employee satisfaction. Note that specifics vary by contract, industry, and union agreements.

Employment Contracts in Germany

Employment contracts in Germany must be provided in writing, signed by the employer, and include essential terms. Failure to comply with the Verification Act can result in fines up to €2,000 per violation. Contracts can be indefinite or fixed-term; the latter requires objective justification, like temporary workload increases, and is limited to two years without prior employment. If work continues post-term, the contract becomes indefinite. Key elements to include are:

Names and addresses of both parties
Start date and, if applicable, end date
Job location and description
Trial period details
Compensation breakdown, including overtime and bonuses
Work hours, breaks, and shift details
Annual leave entitlement
Training opportunities
Pension plan information
Termination procedures
References to collective agreements

Clear contracts prevent disputes and ensure legal compliance, as seen in SailGlobal's advisory cases where well-drafted agreements streamlined international expansions.

Trial Periods Under German Law

Trial periods, capped at six months, allow employers to assess fit. Since August 2022, the Part-Time and Fixed-Term Employment Act requires proportionality between the trial duration and contract term. During this period, the notice period is typically two weeks, and dismissal protection laws do not apply for the first six months of employment. SailGlobal advises clients to use trial periods strategically, aligning them with project timelines to minimize risks.

German Working Hours and Employment Laws: A Guide for Employers