Employers in Germany should not underestimate the meaning of reference letters – the German Arbeitszeugnis. German employment law and employment practice provide employers with clear guidelines as to when and how they must issue a reference letter. Every employee in Germany is entitled to a reference letter according to Section 109 German Industrial Code (Gewerbeordnung – GewO) in line with German law requirements. An entitlement for a reference also arises for managing directors and trainees. Employers need to know the specifics on how to write reference letters and – equally important – how to analyze reference letters of candidates in the hiring process.

1. What kind of reference letters can an employee ask for? There are different kinds of reference letters an employee may request. While a so-called simple reference letter (einfaches Arbeitszeugnis) merely indicates the nature and duration of the employment relationship, a so-called qualified reference letter (qualifiziertes Arbeitszeugnis) is more detailed and evaluates the employee's conduct and performance during the employment relationship. The employee has the right to choose and in practice will regularly expect and demand a qualified reference letter. An employee may also ask for a so-called interim reference letter (Zwischenzeugnis) which from its form and content is very similar to the qualified reference letter. The only difference is that an interim reference letter is not issued upon termination of employment, but when the employee has a legitimate interest in it. A legitimate interest regularly exists when the employee changes his/her role or when notice has been given but the notice period has not yet expired, and the employee needs to apply for another job in the meantime. The requirements for the legitimate interest must not be set too high. Even the intention to look around the job market may justify the need for an interim reference letter.

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