The employment contract - as well as EU and German laws and regulations - shape the employment conditions. A contract of employment setting out the terms and conditions of the employer-employee relationship is usually drawn up in writing. Collective agreements between employer associations and trade unions apply only to those employers and employees who are members of an employer association or a trade union. An exemption applies for agreements that have been declared universally applicable by the Federal Ministry of Labor and Social Affairs.
Some employment regulations do not allow any deviation by way of employment contract and/or collective agreement.
The German General Act on Equal Treatment, often referred to as the Anti-Discrimination Act, implements EU regulations on anti-discrimination. It mandates a general prohibition of discrimination against any person for reasons of ethnic origin, gender, religion or ideology, disability, and age as well as sexual orientation.
Posted workers
When expanding to Germany, international companies often not only employ new staff in Germany. It may also be necessary to second personnel with management or specialist tasks from the parent company abroad to a new German entity for a limited time. Sometimes these employees are posted to Germany based on their existing foreign employment relationship.
In such cases, EU and German law prescribe the applicability of certain German minimum employment conditions. Websites of the European Commission on posted workers and of the German Customs’ Authority on foreign-domiciled employers provide detailed information on rules to consider.
