Practical guidance and selected case law on German employment law. The 2026 articles are allocated to January through October and were written and reviewed retrospectively on 13 November 2026.
Practice and legal developments
Minimum wage in 2026: pay and working hours
The German statutory minimum wage is EUR 13.90 gross per hour from 1 January 2026. Employers should review actual hours as well as contractual rates. A monthly salary does not by itself establish compliance.
Works council elections in 2026
Regular German works council elections take place every four years between 1 March and 31 May under section 13 BetrVG. 2026 is a regular election year. Proper preparation includes the electoral roll, the correct procedure and clear responsibilities.
Extending a fixed-term contract
Extensions require timely agreement and a review of the applicable legal basis. Changing salary, duties or hours at the same time can affect whether an arrangement counts as an extension or a new agreement.
Equal pay: comparing roles and decision criteria
Pay differences need a defensible assessment of the work and the criteria actually used. Job titles and management levels alone do not establish whether roles are equal or of equal value.
Working remotely from another country
An overseas home office can affect employment law, social security, immigration and tax. A general remote-work policy rarely answers all the questions arising from a particular destination and duration.
Introducing HR software with the works council
Review what a personnel system actually records, links and evaluates before it is purchased or deployed. Monitoring capability and decision support can engage several legal requirements at once.
Restructuring: distinguish consultation and the social plan
A reconciliation of interests concerns whether, when and how an operational change is implemented. A social plan concerns compensation or mitigation of economic disadvantages. The two negotiations should be coordinated without confusing their legal functions.
Federal Labour Court decisions
Garden leave during notice: the BAG on alternative earnings
In its judgment of 12 February 2025, case 5 AZR 127/24, the Federal Labour Court considered alternative earnings during employer-imposed release from work. An employee is not generally required merely because of that release to start another job before the notice period ends.
Working-time records: implementation and participation
The Federal Labour Court decision of 13 September 2022, case 1 ABR 22/21, is central to German working-time recording. Employers must organise a system that records daily working time; implementation also raises participation and data-protection questions.
Holiday limitation periods and employer information
In its judgment of 20 December 2022, case 9 AZR 266/20, the Federal Labour Court explained the importance of employer cooperation for limitation of statutory holiday claims. A simple three-year calculation from the holiday year is not always sufficient.