Salary under German labour law (without minimum remuneration)

The amount of an employee´s wage (remuneration, salary) is agreed between the employee and the employer before the beginning of the employment. The earned income is stated in the employment contract. Otherwise the tariff or company regulations apply.

Holiday pay and Christmas bonuses

Holiday pays or Christmas bonuses are “gratifications” from the employer. These allowances depend on the past and future fidelity of the employer. If the employee, for example, terminates their employment relationship, he may have to repay a portion of the gratuities.T

he 13th monthly salary is a special payment that is intended to repay past performances. The employee receives the 13th monthly salary at the payout.

If there is a dispute about special remuneration in the event of a termination, you should have a lawyer examining your employment situation.

Public Holidays and sickness benefits

An employee is entitled to the payment of his remuneration if:

  • Due to a public holiday the normal working time can not be respected;
  • He/she is unable to work because of an illness/sickness (condition: the employment relationship must have been continuous for at least four weeks from the starting of the contract). The employee is entitled to sickness benefits from the employer for 6 weeks. After those 6 weeks, the health insurance company will take care of that.
  • He/she falls sick again with the same disease. He then has a new entitlement up to six weeks´ remuneration. (Condition: in between he may not have been sick for six months for the same disease or twelve months have elapsed since he was ill for the first time for the same disease).

Company car

In addition to the remuneration for the work, a “Naturalvergütung“ (remuneration for the natural person) can also be agreed.

A company car which the employee also uses for private purposes is such remuneration. The employee also has the right to use the car in the case of• continuation of wages,• illness or• exemption after termination.T

his applies, unless otherwise agreed. If the employer removes the company car from the contract, the employee is entitled to compensation against the employer.

Make sure to consult a lawyer for any further questions on this topic. We are here for you!Sala

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