German Labour Law – An Overview 2025

Individual labour law centres on the relationship between a person at work and their employer, as governed by the employment contract between them. Both employee and employer are affected by these rights and duties. A number of different laws ensure certain minimum rights, e.g. the Law on Minimum Wages (Mindestlohngesetz) which obliges employers to pay a statutory minimum wage of EUR 12.82 gross per hour to employees working in Germany as of 1 January 2025. German individual labour law is entirely employee protective law, i.e. its standards can generally not be waived to the detriment of the employee, whereas contractual regulations favouring the employee compared to the statutory minimum are permissible.

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