Germany

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Congratulations on your decision to hire employees in Germany! Germany is known for its strong vocational education system, which trains workers in a wide range of technical and practical skills. This system produces workers that are highly skilled, making them invaluable to companies looking for specific skill sets. Plane makes this process easy for you by providing automated tax document collection, payroll, benefits, and more. This ensures compliance and efficiency throughout the process. Navigating the hiring process in a new country can be challenging, so we've compiled the details below to help guide you.

Currency

EUR

 Onboarding

3 - 4 weeks

Employer Cost

22.42%

Pay Frequency

Monthly

Public Holidays

9

5 Considerations Before Hiring in Germany

As an employer in Germany, it is important to have a comprehensive employment contract that outlines the terms and conditions of the employment relationship. The contract should include compensation, benefits, vacation time, and sick leave policies. Before onboarding a new employee in Germany, take a moment to consider the following questions:

Does your employee have the right to work in Germany?

In order to work in Germany, a person needs to have the right to work, which means they need to have the necessary visa or work permit.

If you are hiring someone from outside the European Union (EU), they will need a visa and a work permit to work in Germany legally. This process can take several months and involves obtaining the necessary documentation and meeting specific requirements, such as having a job offer and proving that they have the necessary qualifications for the job.

Plane Recommendation

The EU Blue Card is the most common visa type and allows for non-nationals to compliantly live and work in Germany. The application process can take 2 to 5 months for a new application. Plane’s immigration partners assist with the process. Their fee is $6,500 USD for the employee and $2,500 per dependent. There are additional fees on top of this in Germany.

How do pensions work in Germany?
Will there be a probationary period? If so, for how long?
Would you like to offer additional incentives?
How many days of paid time off will be provided?

Getting Started with Hiring in Germany

Employment Contract

In Germany, there are two types of employment contracts: indefinite and fixed-term. Fixed-term contracts may not exceed 2 years and are renewable up to 2 times, with exceptions for certain circumstances. For example, start-up businesses may hire employees on fixed-term contracts for up to 4 years without justification. These contracts must be in writing.

Indefinite contracts may be oral or written, but it is strongly recommended to have written contracts. A written contract should include the parties' identities and addresses, start date of employment, workplace, job description, salary amount, payment intervals, working hours, annual leave entitlement, notice periods for termination, length of the probation period if applicable, and applicable collective or company agreements. Within a month of the employee's first day of work, the employer must also indicate in writing if there is no written contract. Probation periods may not exceed 6 months.

Hire Calculator

Get an instant, free estimate of how much it will cost to employ your next hire, including taxes.

Once you have sorted out the details mentioned above, you can add the employee to the Plane platform. We provide a step-by-step workflow that shows what tasks need to be completed, as well as real-time updates and notifications. This way, you can stay on top of the hiring process at all times. With Plane, you can confidently hire, knowing that you have a powerful platform at your disposal to manage the entire process from start to finish. Here are the instructions for adding a new employee to the platform:

How to hire and onboard an employee

Plane offers a guided process for administrators and managers to hire and onboard their new employees.

Hiring an employee in a new country can be a complex process, but with the right guidance and resources, it can be a smooth and successful transition. At Plane, we're committed to helping you navigate this process step-by-step. We'll keep you informed and up-to-date with the latest regulations and employment laws.

Frequently Asked Questions

Here are answers to some common questions about hiring employees outside of the US with Plane:

What is the relationship between my company and Plane?

Pilot Platform Inc (Plane) provides the product and service by helping you manage HR, payroll, and statutory requirements. Plane has its own entities and partners that are the EOR/legal employer where the employee is legally hired in the country. Plane and our partner do not manage the performance of the employees since we do not monitor or work directly with them.

Can Plane withhold taxes for non-cash compensation (e.g. stocks, options)?
Will I be able to pay a bonus, commission, or any other additional payments?
Can Plane guarantee the employee’s start date?