-
How does German employment law differ for US & UK companies?
-
Unlike US 'at-will' employment or UK redundancy frameworks, German employment law provides strong statutory dismissal protection under the KSchG once an employer has more than 10 employees. Terminations require legally recognized grounds, wet-ink physical signatures (Section 623 BGB), and strict formal procedures.
-
Can US and UK companies use their standard international employment templates?
-
No. Standard US or UK employment agreements containing unilateral variation clauses or blanket overtime waivers are regularly declared null and void under German Standard Terms Law (§§ 305 ff. BGB). Enforceable contracts require dual-language (DE/EN) drafting and compliant post-contractual non-compete clauses.
-
When does the German Dismissal Protection Act (KSchG) apply and how is the 10-employee threshold calculated?
-
The KSchG applies once an employer regularly employs more than 10.0 full-time equivalent employees (FTE) and an employee has worked for longer than 6 months. Part-time employees are weighted: up to 20 hrs/week = 0.5 FTE; up to 30 hrs/week = 0.75 FTE; over 30 hrs/week = 1.0 FTE.
-
Can termination notices or mutual separation agreements be signed digitally via DocuSign or email?
-
Under Section 623 of the German Civil Code (BGB), notice of termination and mutual separation agreements (Aufhebungsvertrag) strictly require wet-ink handwritten signatures on physical paper. Digital signatures (DocuSign, Adobe Sign, email) are 100% legally void.
-
Is severance pay mandatory under German law and how is it calculated?
-
There is no statutory default right to severance upon dismissal. However, because court litigation carries high employer back-pay risk (Annahmeverzugslohn), over 80% of employment disputes settle via severance agreements. The standard formula is 0.5 gross monthly salaries per year of service (ranging between 0.25 and 1.5+ multipliers).