Employment/ 1 min read
Common employment-law pitfalls for US startups hiring in Germany
'At-will' does not exist in Germany. Notice periods, probation and works councils change the playbook.
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Statutory protection after probation
The biggest surprise for US-based founders is that German employment relationships are highly protected once probation ends. Statutory notice periods extend with tenure, dismissal for economic reasons requires social selection, and even a small German team can trigger works-council obligations.
Structuring the first year
Planning contract structure and probation carefully in the first year of German operation avoids expensive corrections later. A six-month probation, clear job description, and jurisdictionally correct clauses are the baseline.
Frequently asked questions
Can we hire in Germany without a local entity?
Yes, via an Employer of Record for a first hire, but for a growing team a GmbH or UG becomes the more efficient long-term structure.
How long is a lawful probation period?
Up to six months, with a two-week statutory notice during that time. After probation, notice periods grow with tenure.
Localized German employment contracts
We draft compliant employment contracts and probation frameworks for your first German hires.
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