Introduction to German Labor Law

In 2023, 988 US-American companies were employing about 199,000 people in Bavaria. Understanding the foundations of German labor law is key to successfully operating in the country.

The Employers' Association of Bavarian Metal and Electrical Companies (bayme) and the Association of the Bavarian Metal and Electrical Industry (vbm) have published two English introductions to German labor law for their members. The publications aim to inform executives and managing directors from abroad who wish to familiarize themselves with German labor law, its basic concepts and key legal statutes without a language barrier.

• “Basics of German Individual Labor Law” provides a systematic overview of the fundamentals of German individual labor law. This publication is aimed at readers for whom works council law is not relevant. The publication covers key aspects of individual labor law – from hiring and contract drafting to sick leave and vacation, through to the termination of employment relationships. It also addresses the use of third-party personnel and the associated legal requirements. The publication explains the essential legal sources and how they interact. Practical examples illustrate their application in day-to-day business operations.
• The second publication – “Basics of German Labour Law and Works Constitution Law” – offers a systematic overview of the fundamentals of German labor law mentioned above but also addresses works constitution law. It explains the works council’s co-determination rights and its role in human resources decisions. The publication explains the content and interplay of the key laws, collective bargaining agreements, and company agreements. Practical examples illustrate their application in day-to-day business operations.

bayme vbm members can access the publications through the associations’ website linked above. If you are interested in the publications but your company is not a member of bayme vbm please get in touch.