Labor Rights in Germany: What You Need to Know About Vacation, Sick Leave, and Termination

Moving and starting work in a new country is always a marathon with obstacles, especially when it comes to bureaucracy and laws. Germany is a country with very clear rules, and labor law here is no exception. Knowing your rights will not only give you confidence but also protect you from unpleasant surprises. Let’s calmly, step by step, break down the three pillars of labor relations in Germany: vacation, sick leave, and termination. This article is your cheat sheet and “calming agent” all in one.

Your Employment Contract (Arbeitsvertrag) – The Main Document

Before we begin, remember the main rule: your primary document is your employment contract. Read it carefully before signing. It outlines the key conditions of your work, which may even be better than the legal minimum. If a collective agreement (Tarifvertrag) is in effect at the company, its terms also apply to you and often offer more favorable provisions.

Section 1. Your Legal Rest: All About Vacation (Urlaub)

Work is work, but rest is scheduled. In Germany, vacation is taken very seriously, and your right to it is protected by the Federal Vacation Act (Bundesurlaubsgesetz).

1.1. How Many Vacation Days Am I Entitled To?

The law sets the minimum number of vacation days per year. It depends on how many days a week you work.

In Practice: Most employers in Germany offer more than the statutory minimum. 25-30 days of vacation with a five-day work week is common and absolutely normal practice. Always look for the exact number in your employment contract.

1.2. When Can I Take My First Vacation?

You are entitled to your full annual vacation after working for the company for six months. This period is called “Wartezeit” (waiting period).

What if you need vacation sooner, for example, during the probationary period (Probezeit)? Don’t panic. You are entitled to partial vacation. For every full month worked, you “earn” 1/12 of your annual vacation.

1.3. How to Properly Apply for and Use Vacation?

The procedure is simple: you submit a written request (often through the company’s internal system), and the employer approves it. Your preferences should be considered, but the employer can refuse if there are valid operational reasons (e.g., a busy season in your department).

Unused vacation days generally must be taken by the end of the year. If this was not possible due to operational or personal reasons, they can be carried over to the next year but must be used by March 31st.

If you resign and have unused vacation days, the employer is obliged to pay you monetary compensation for them.

1.4. Vacation Pay (Urlaubsgeld): A Nice Bonus

It’s important not to confuse the salary you receive during vacation (which is a given) with so-called “vacation pay” (Urlaubsgeld). Urlaubsgeld is an additional payment, a kind of bonus for your vacation. The employer is not legally obliged to pay it. The entitlement to this payment and its amount are determined by your employment or collective agreement.

Section 2. If You Get Sick: Rules for Sick Leave (Arbeitsunfähigkeit)

Feeling unwell is not a reason for heroism at work. Germany has very clearly defined procedures for illness that protect the employee’s rights.

2.1. First Steps: How and When to Notify Your Employer?

Your first and most important step is to immediately inform your employer that you are sick and will not be able to come to work. You should do this before the start of your workday by phone or email. You don’t need to go into detail about your diagnosis; the fact that you are sick and unable to work is sufficient.

2.2. Certificate of Incapacity for Work (Arbeitsunfähigkeitsbescheinigung - AU)

This is the official name for a sick note. • When to see a doctor? By law, you are required to provide a doctor’s certificate if you are sick for more than three calendar days. • Important nuance: Your employer has the right to request a sick note from the first day of illness. This condition must be stated in your employment contract.

Since 2023, Germany has implemented an electronic sick note system (eAU). This means the doctor sends the data directly to your insurance company, which in turn notifies your employer. You no longer need to bring a paper copy to work, but the obligation to notify about your illness and see a doctor remains yours.

2.3. Who Pays and How Much During Illness?

The financial aspect is regulated by the Continued Remuneration Act (Entgeltfortzahlungsgesetz). • First 6 weeks (42 days): Your employer continues to pay you 100% of your regular salary. You are entitled to this payment after working for the company for at least four weeks. • From the 7th week onwards: If you continue to be sick with the same illness, your statutory health insurance fund (Krankenkasse) takes over the payments. This benefit is called Krankengeld and is approximately 70% of your gross salary (but no more than 90% of your net salary).

2.4. What to Do If You Get Sick During Vacation?

The most unfortunate scenario, but here too, the law is on your side. If you get sick during your vacation and can confirm it with a doctor’s note, these days do not count as vacation days. You “save” them and can use them later. Be sure to inform your employer immediately about your illness and provide the sick note.

2.5. Caring for a Sick Child

If your child (under 12 years old) falls ill, you are also entitled to stay home. In this case, you receive child sick pay (Kinderkrankengeld) from your insurance fund. Each parent is entitled to a certain number of such days per year.

Section 3. Termination of Employment: What You Need to Know About Termination (Kündigung)

The topic of termination is always unpleasant, but knowing the rules will help you get through this phase with minimal losses.

3.1. Probationary Period (Probezeit): Special Rules

The probationary period in Germany is a “getting to know you” phase for the employee and employer. • Duration: Cannot exceed 6 months. • Termination: During this period, both you and the employer can terminate the contract without giving a reason, with only two weeks’ notice.

3.2. Termination After the Probationary Period

Once the probationary period is over, you fall under stricter rules that protect your rights.

If you resign (Eigenkündigung): You must notify your employer of your decision in writing. The standard notice period by law (§ 622 BGB) is 4 weeks before the 15th or the end of a calendar month. However, your employment contract may specify a longer period (e.g., 3 months), which is binding for both parties.

If you are terminated: This is more complex for the employer, especially if the company has more than 10 employees and you have worked there for more than 6 months. In this case, the Protection Against Dismissal Act (Kündigungsschutzgesetz, KSchG) applies. Termination must be justified by one of three reasons:

1. Operational reasons (betriebsbedingt): e.g., staff reduction.
2. Personal reasons (personenbedingt): e.g., long-term illness with no prospect of recovery.
3. Conduct-related reasons (verhaltensbedingt): serious violation of work discipline (absenteeism, theft, etc.).

The notice periods that the employer must observe depend on your length of service with the company:

3.3. Important Formalities and Tips

1. Only in writing: Termination (both by you and by the employer) is only valid in writing with an original signature. Notification by email or messenger has no legal force.
2. Termination agreement (Aufhebungsvertrag): Sometimes, an employer offers to part ways “amicably” by signing such an agreement. Read the terms carefully! By agreeing, you may lose your right to unemployment benefits. It’s best to consult a lawyer before signing.
3. Immediately after termination: If you are terminated, you must register as a job seeker (arbeitssuchend) with the Employment Agency (Agentur für Arbeit) within 3 days. This is important for receiving unemployment benefits.
4. For foreigners: If your residence permit (Aufenthaltstitel) is tied to a specific employer, you must immediately report the loss of your job to the Foreigners’ Office (Ausländerbehörde). Don’t worry, you will be given time to find a new job.

3.4. Special Protection Against Dismissal

Certain groups of employees are particularly strictly protected against dismissal. It is practically impossible to terminate them. These include: • Pregnant women and mothers for 4 months after childbirth (Mutterschutzgesetz). • Employees on parental leave (Elternzeit). • People with severe disabilities. • Members of the works council (Betriebsrat).

Conclusion: Knowledge is Your Power

We hope this information helps you feel more confident in the German labor market. Remember that the laws here are, in most cases, on the employee’s side. If you doubt the legality of your employer’s actions, do not hesitate to seek help. Initial free consultations can be obtained at special centers for migrants, such as “Faire Integration,” or at your trade union (Gewerkschaft), if you are a member.

Good luck on your journey in Germany!