How is payroll managed in Germany?

In Germany, employees are typically paid a monthly salary. It’s necessary for each employee to be registered with their selected health insurance, a process which the employer must facilitate through the payroll system. This results in a significant number of transactions each month. SimplyEOR can manage these payroll responsibilities on your behalf.

What are the sick leave regulations?

In Germany, employees are generally entitled to their full salary when sick. Employers, in turn, can reclaim 80% of this amount from the health insurance system, provided they have fewer than 30 employees. After three days of illness, an employee must submit a doctor’s note to continue receiving compensation. If the illness extends beyond six weeks, the amount of sick pay is reduced, and ongoing medical certification is required until the employee can return to work.

What should be considered when dismissing an employee?

Employment rights in Germany are rigorously enforced. It’s advisable to consult with one of our employment law advisors before initiating any dismissal actions. For instance, notices of termination are typically delivered in person to ensure acknowledgment, as failure to do so can be problematic for the employer. We can manage all aspects of this process to ensure compliance.