Employment rights in Germany: vacation, sick leave, notice period, and probation

German employment law is heavily in favour of the employee. Many things Indians are used to negotiating (notice periods, sick pay, minimum vacation) are set by statute in Germany, not by your employer. Knowing these rights prevents you from being quietly undercut.

Vacation (Jahresurlaub)

Minimum by law

The Bundesurlaubsgesetz (Federal Leave Act) gives every full-time employee a minimum of 20 working days per year (based on a 5-day working week). If your week is 6 days, the minimum is 24 days.

In practice, most German employers offer 25 to 30 days. Tech and banking sectors often offer 30 days as standard. Check your contract.

How it accrues

You earn leave from day one. In your first half of the calendar year at a new job, you technically only have a right to proportional leave. After 6 months of employment, you are entitled to the full annual allowance.

Carrying over

Two rules sit on top of each other here, and the second one is worth more money to you than anything else on this page.

The statute. §7 Abs. 3 BUrlG says leave lapses at the end of the calendar year. Carrying it into the next year is "nur statthaft" (only permissible) where urgent operational reasons, or reasons in the person of the employee, justify it, and carried-over leave must then be taken in the first three months of the next year, so by 31 March. Read alone, that is the forfeiture rule most people believe in.

The case law, which overrides it. Since the Court of Justice ruled in C-684/16 and the Bundesarbeitsgericht implemented it on 19 February 2019 (9 AZR 541/15), your leave does not lapse automatically any more. It lapses only if your employer first put you in a position to take it: told you specifically how many days you had, asked you to take them, and warned you clearly and in good time that they would otherwise expire. A generic line in a staff handbook does not do it. The courts have required an individual notice.

If your employer never did that, the days did not expire, and claims going back over several years can still be made. Most employees never find out, which is exactly why employers who do this properly send that slightly odd individual email every autumn telling you your remaining balance. If yours does not, the balance is probably still yours.

Document any "you must stay, we are too busy" pressure from your employer.

Requesting vacation

German law does not require you to give a specific notice period for vacation, but your contract or collective agreement usually specifies one (often 2 to 4 weeks notice). Your employer can refuse if it creates serious operational problems, but they cannot simply refuse without reason. They also must offer alternative dates.

Vacation payout on leaving

If you leave your job before taking all your accrued leave, your employer must pay you for the unused days in your final payslip.

Sick leave (Krankschreibung)

First 3 days: no certificate needed

For the first 3 consecutive days of illness, you do not need a doctor's certificate in most workplaces. You call in sick (per your employment contract requirements (usually a phone call, not an email), and that is legally sufficient.

Some employers shorten this to day 1 in their contracts (which is allowed). Check your contract.

From day 4: you need a Krankschreibung

From the 4th day of illness, you must provide an Arbeitsunfähigkeitsbescheinigung (AU-Bescheinigung / Krankschreibung) from a doctor. Your GP issues this. It is valid for the period your doctor specifies, typically a week at a time.

The eAU (electronic sick note) has replaced the yellow paper form in most cases; your doctor submits it directly to your employer digitally. You still receive a copy.

Sick pay (Entgeltfortzahlung)

• First 6 weeks: your employer pays your full salary. This is guaranteed by law (Entgeltfortzahlungsgesetz).
• Week 7 to 78: your GKV health insurance pays Krankengeld, approximately 70% of your gross salary (but no more than 90% of your net salary). Paid by your insurer, not your employer.
• After 78 weeks: the income support ends. Long-term illness beyond this is covered by other social systems.

One detail people get wrong when they plan around this: the 78 weeks runs "vom Tage des Beginns der Arbeitsunfähigkeit an", from the first day you were unfit for work, not from the day Krankengeld starts. The six employer-paid weeks sit inside the 78, not before them, so Krankengeld itself runs for at most 72. The limit is also per illness, within any three-year period.

You cannot be fired for being sick

German employment protection law makes it essentially impossible to terminate an employee solely for being sick, unless illness is so persistent it creates an undue operational burden. Even then, courts have very high thresholds. Employers who fire for sickness face significant legal risk.

Probation period (Probezeit)

Standard: 6 months

Almost all German employment contracts start with a probation period of up to 6 months. During Probezeit, both you and your employer can terminate the contract with just 2 weeks notice (no justification needed on either side).

After Probezeit ends, notice periods become longer and terminations require justification under the Kündigungsschutzgesetz.

What Probezeit means for you

• Your employer can let you go in week 11 with 2 weeks notice and no explanation required.
• You can also leave in week 11 with 2 weeks notice, useful if you quickly realise it's not a good fit.
• During Probezeit, dismissal does not require the Betriebsrat (works council) consultation that applies later.
• Sick leave during Probezeit counts normally for sick pay purposes, but employers do watch it.

Visa note for Blue Card holders

If you are fired during Probezeit and are on a Blue Card, your visa is tied to employment. You have a 90-day grace period to find a new job before your permit is at risk. See your Ausländerbehörde immediately if this happens.

Notice periods (Kündigungsfristen)

German law sets minimum notice periods based on tenure. Your contract can provide longer notice but not shorter.

Employer notice to employee

Under §622 BGB (Civil Code), minimum notice periods from the employer are:

Employee notice to employer

Standard minimum: 4 weeks to the 15th or the end of the month (this is the same for everyone, regardless of tenure).

Your contract typically specifies the same as the employer-to-you period, often 3 months after passing Probezeit.

Important: the "to the 15th or end of the month" phrasing means notice does not take effect immediately. If you hand in notice on January 16 with a 4-week minimum, it takes effect on February 28 (end of month), not February 13. This adds unexpected time to your notice.

The Aufhebungsvertrag (mutual termination agreement)

If both parties want to part ways faster than the notice period allows, you negotiate an Aufhebungsvertrag. This is a bilateral termination agreement with negotiated terms. Common in situations where a company is restructuring. You typically get a severance payment (Abfindung).

Warning: an Aufhebungsvertrag can trigger an Arbeitsagentur waiting period (Sperrzeit) of up to 12 weeks before you receive unemployment benefit. Get legal advice before signing one.

Termination protection (Kündigungsschutz)

After completing 6 months of employment in a company with more than 10 employees, you are protected by the Kündigungsschutzgesetz (KSchG).

This means your employer can only terminate you for one of three reasons:

1. Personal reasons (persönliche Gründe): your conduct or capability (e.g., persistent absence, gross misconduct)
2. Behavioural reasons (Verhaltensbedingte Kündigung): specific misconduct after prior warnings (Abmahnung)
3. Operational reasons (Betriebsbedingte Kündigung): genuine redundancy from business restructuring

A termination without proper documentation can be challenged at the Arbeitsgericht (labour court) within 3 weeks of receiving notice. Labour court proceedings in Germany are fast (often resolved in 3 to 6 months) and employees frequently win or negotiate a settlement.

Overtime (Überstunden)

German law does not automatically require payment for overtime unless your contract specifies it. Many white-collar contracts include an "overtime is included in salary" clause; this is common in IT and finance.

What you can negotiate:

• Time off in lieu (Freizeitausgleich): overtime compensated with equivalent free time
• Overtime pay at a rate specified in your contract or collective agreement (Tarifvertrag)

Legal limits: the Arbeitszeitgesetz (Working Hours Act) caps work at 8 hours per day, extendable to 10 hours if you average 8 hours over the following 6 months. This is mostly ignored in practice for salaried professionals, but it exists.

Christmas and holiday bonuses

There is no legal requirement for a Christmas bonus (Weihnachtsgeld) or holiday pay (Urlaubsgeld) in Germany. However:

• If your company has paid it for 3+ consecutive years, it becomes a betriebliche Übung (established practice), which may give you a legal claim to it
• Collective agreements (Tarifverträge) in many industries mandate a 13th monthly salary or a percentage-based bonus
• Your contract may explicitly state a bonus

Ask HR before you accept an offer whether a bonus is contractual, discretionary, or non-existent.

Works council (Betriebsrat)

Companies with 5+ employees can elect a Betriebsrat. Large German employers almost universally have one. The Betriebsrat:

• Must be consulted before any staff dismissal
• Can block (or delay) some HR decisions
• Cannot be fired without special procedures
• Negotiates working conditions alongside HR (social plans, flexible working agreements)

If your employer is planning layoffs, the Betriebsrat is the first to know. They can negotiate severance packages for affected staff. If you are laid off and think the process was not followed correctly, the Betriebsrat can advise or support your case.

The Arbeitszeugnis (reference letter)

In Germany, every employee has a legal right to receive a Arbeitszeugnis (work reference letter) when they leave. Your employer is required to provide one within a reasonable time.

The German Arbeitszeugnis is famously coded:

Decode your Zeugnis before it is finalised. You can ask for corrections if it does not accurately reflect your performance.

Request a qualifiziertes Zeugnis (qualified reference), which covers both the tasks you did and your performance. A simple einfaches Zeugnis only lists your role.

Unemployment benefit (Arbeitslosengeld I)

If you are made redundant (not if you voluntarily resign), and you have contributed to the German social system for at least 12 months in the last 30 months, you are entitled to Arbeitslosengeld I (ALG I):

• Amount: 60% of your previous net salary (67% if you have at least one child)
• Duration: 12 months standard. This extends with age and contribution history: up to 15 months from age 50, 18 months from age 55, and up to 24 months from age 58 (with at least 48 months of contributions in the preceding 5 years)
• Register with the Agentur für Arbeit within 3 days of knowing your contract will end (not on the last day)

Visa note: as a Blue Card holder, receiving ALG I is possible but can affect your future PR application. The contribution record still counts. Consult your Ausländerbehörde before relying on ALG I for more than a few months.

Frequently asked questions

Q: My employer wants me to work more than 8 hours every day. Is that legal?

The Arbeitszeitgesetz caps work at 8 hours/day, extendable to 10 hours if the average over 6 months stays at 8. Persistent 10+ hour days without compensation may violate this law. In practice, enforcement is light for white-collar salaried workers, but the right exists.

Q: Can my employer deduct sick days from my vacation?

No. Sick days on which you have a valid Krankschreibung do not count as vacation days. If you fall ill while on vacation, you can reclaim those sick days as unused vacation, if you have a Krankschreibung for those days.

Q: I resigned before taking all my vacation. Will I be paid out?

Yes. Accrued untaken vacation must be paid out in your final payslip. This is a statutory right.

Q: Can I work for a competitor after leaving?

Depends on your contract. Many contracts include a Wettbewerbsverbot (non-compete clause). For a non-compete to be enforceable post-employment, your employer must pay you at least 50% of your final salary during the non-compete period. Unpaid non-competes are unenforceable. Read your contract before signing.

Q: My employer is giving me fewer than 20 vacation days. Is that allowed?

No. 20 days (5-day week) is the statutory minimum. A contract that gives you fewer is invalid for that specific clause; you are entitled to 20 days regardless.

Sources

• §3 Abs. 1 BUrlG, minimum leave of 24 Werktage, which on a five-day week is the 20 days quoted above.
• §7 Abs. 3 BUrlG: carry-over into the next calendar year is "nur statthaft, wenn dringende betriebliche oder in der Person des Arbeitnehmers liegende Gründe dies rechtfertigen", and carried-over leave must be granted and taken in the first three months of that year.
• CJEU, case C-684/16 (Max-Planck-Gesellschaft), judgment of 6 November 2018, and Bundesarbeitsgericht, 19 February 2019, 9 AZR 541/15: statutory leave does not lapse merely because the employee did not request it. The employer must have enabled the employee to take it, formally invited them to do so, and informed them clearly and in good time that it would otherwise expire.
• §5 Abs. 1 EntgFG: a certificate is required where incapacity lasts longer than three calendar days, due at the latest on the following working day, and "Der Arbeitgeber ist berechtigt, die Vorlage der ärztlichen Bescheinigung früher zu verlangen", which is why a contract can require one from day one.
• §3 EntgFG, six weeks of Entgeltfortzahlung at full pay.
• §47 Abs. 1 SGB V, Krankengeld at 70% of the regelmäßiges Arbeitsentgelt, not exceeding 90% of the corresponding net.
• §48 Abs. 1 SGB V, Krankengeld for at most 78 weeks within any three years for the same illness, "gerechnet vom Tage des Beginns der Arbeitsunfähigkeit an".
• §622 BGB: four weeks to the 15th or the end of a calendar month as the basic period (Abs. 1); the employer's periods rising to one, two, three, four, five, six and seven months at two, five, eight, ten, twelve, fifteen and twenty years of service (Abs. 2); and during an agreed Probezeit of at most six months, two weeks (Abs. 3).

Statutory quotations are reproduced from the published texts at gesetze-im-internet.de.

The 25-to-30-day figure for what employers actually offer is market observation, not law; the statutory floor is the 20 days. Whether a particular carry-over, dismissal or Probezeit clause in your contract holds up is a question about your contract, and a contract can improve on these minimums but not undercut them. This guide is general information, not legal advice; for anything involving a dismissal, see a Fachanwalt für Arbeitsrecht, and note the three-week deadline to file a Kündigungsschutzklage.

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• German pension refund for Indians leaving Germany
• ALG I: German unemployment benefit for Indians