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Germany - Compensation & Benefit Legislation

CAPITAL

Berlin

 

CLIMATE

Temperate and marine. Cool, cloudy, wet winters and summers. Occasional warm foehn wind.

 

LANGUAGES

German

 

LEGAL SYSTEM

Civil law system with indigenous concepts; judicial review of legislative acts in the Federal Constitutional Court. Germany has not accepted compulsory ICJ jurisdiction.

 

CURRENCY

Euros (1 USD = 1.07090 EUR as of June 1, 2002)

 

GERMANY - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

GERMANY - EMBASSY/CONSULATES

U.S. Embassy at Berlin

Neustäditische Kirchstrasse 4-5

10117 Berlin

Federal Republic of Germany

Telephone: [49] (030) 8305-0

 

Consulate Offices:

Berlin

Clayalle 170

14195 Berlin

Federal Republic of Germany

Telephone: [49] (303) 832-9233

 

Düsseldorf

Willi Becker - Alee 10

40227 Düsseldorf

Federal Republic of Germany

Telephone: [49] (0211) 788-8927

 

Frankurt

Seismayerstrausse 21

60323 Frankfurt

Federal Republic of Germany

Telephone: [49] (069) 7535-0

 

Hamburg

Alsterufer 27/28

20354 Hamburg

Federal Republic of Germany

Telephone: [49] (040) 411 71-100

 

Leipzig

Wilhelm-Seyfferth-Strauss 4

04107 Leipzig

Federal Republic of Germany

Telephone: [49] (341) 213-8418

 

Munich

Koeniginstrasse 5

80539 München

Federal Republic of Germany

Telephone: [49] (089) 2888-0

 

Embassy of Germany at Washington D.C.

4645 Reservoir Road NW

Washington, D.C. 20007

Telephone: (202) 298-4000

Fax: (202) 298-4249

http://www.usembassy.de

 

GERMANY - HOLIDAYS

 

GERMANY - LEAVE

For personal reasons: Workers have a right under the Civil Code to be absent from work for relatively short periods of time for personal reasons, provided that the absence was not caused by a fault of the worker.

 

GERMANY - MINIMUM AGE

Federal law generally prohibits employment of children under the age of 15, with a few exceptions: Those 13 or 14 years of age may do farm work for up to 3 hours per day or may deliver newspapers for up to 2 hours per day; those 3 to 14 years of age may take part in cultural performances, albeit under stringent curbs on the kinds of activity, number of hours, and time of day. The Federal Labor Ministry effectively enforces the law through its Factory Inspection Bureau.

 

GERMANY - MINIMUM REMUNERATION

There is no legislated or administratively determined minimum wage. Wages and salaries are set either by collective bargaining agreements between unions and employer federations or by individual contracts. Covering about 90 percent of all wage- and salary-earners, these agreements set minimum pay rates and are legally enforceable. These minimums provide an adequate standard of living for workers and their families.

 

GERMANY - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

GERMANY - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

a.      The Right of Association

 

The Basic Law provides for the right to associate freely, choose representatives, determines programs and policies to represent workers' interests, and publicize views, and workers exercised these rights. Approximately 28.5 percent of the total eligible work force belong to unions. The German Trade Union Federation (DGB) represents approximately 85 percent of organized workers.

 

The Basic Law provides for the right to strike, except for civil servants (including teachers) and personnel in sensitive positions, such as members of the armed forces. In the past, the International Labor Organization (ILO) has criticized the Government's definition of "essential services" as overly broad. The ILO continued to seek clarifications from the Government on policies and laws governing the labor rights of civil servants.

 

The DGB participates in various international and European trade union organizations, including the European Trade Union Confederation (ETUC) and the International Confederation of Foreign Trade Unions (ICFTU).

 

b.      The Right to Organize and Bargain Collectively

 

The Basic Law provides for the right to organize and bargain collectively and workers exercised these rights. Collective bargaining is widespread due to a well-developed system of autonomous contract negotiations, mediation is used infrequently. Basic wages and working conditions are negotiated at the industry level. However, some firms in the eastern part of the country have refused to join employer associations or have withdrawn from them and then bargained independently with workers. In addition some firms in the west withdrew at least part of their work force from the jurisdiction of employer associations, complaining of rigidities in the industrywide, multicompany negotiating system; however, they have not refused to bargain as individual enterprises. The law mandates a system, known as co-determination, whereby workers are able to participate in the management of the enterprises in which they work through "works councils" and worker membership on boards of directions.

 

The law effectively protects workers against antiunion discrimination. Labor courts are courts of first instance; therefore, complainants file their cases directly with the labor courts. Specialized labor court judges render decisions in these cases.

 

There are no export processing zones.

 

c.      Prohibition of Forced or Compulsory Labor

 

The Basic Law prohibits forced or compulsory labor; however, trafficking in women was a problem (see Section 6.f.).

 

In July 2000, agreement was reached among eight nations, German companies, and victims' representatives on the establishment of a German foundation which will distribute funds for payments to private and public sector Nazi era forced and slave laborers and others who suffered at the hands of German companies during the Nazi era. The Government and German companies will each contribute $2.3 billion (DM 5 billion) to the foundation, which is established under German law. The foundation concluded agreements with partner organizations that are to receive foundation funds in order to process and pay claims according to agreed procedures and subject to audit. Payments to former forced laborers began in July. Since July the Government has paid approximately $1 billion (DM2 billion) to approximately 600,000 claimants worldwide.

 

The Basic Law prohibits forced or bonded labor in children; however, trafficking in girls was a problem (see Section 6.f.).

 

d.      Status of Child Labor Practices and Minimum Age for Employment

 

The law prohibits the employment of children under the age of 15, with a few exceptions: Those 13 or 14 years of age may do farm work for up to 3 hours per day or may deliver newspapers for up to 2 hours per day; and those 3 to 14 years of age may take part in cultural performances, albeit under stringent curbs on the kinds of activity, number of hours, and time of day. The Federal Labor Ministry effectively enforces the law through its Factory Inspection Bureau.

 

On July 5, 2000, the Bundestag ratified ILO 182 on the Worst Forms of Child Labor; the law took effect on December 18.

 

The Basic Law prohibits forced or bonded labor in children; however, trafficking in girls was a problem (see Section 6.f.).

 

e.      Acceptable Conditions of Work

 

There is no legislated or administratively determined minimum wage; wages and salaries are set either by collective bargaining agreements between unions and employer federations or by individual contracts. Covering approximately 90 percent of all wage and salary-earners, the collective bargaining agreements set minimum pay rates and are enforceable by law. These minimums provide a decent standard of living for a worker and family.

 

In September 2000, the Federal Constitutional Court refused to review a case filed by a civil servant in East Berlin, who had argued unsuccessfully that the prevailing system of different rates of pay for public service workers in the east and west were unconstitutional. The Court ruled that lower wages in the east were justifiable due to differences in the economic situation in both parts of the country and stated that the pay gap had narrowed steadily since 1992.

 

Federal regulations limit the workweek to a maximum of 48 hours, but the number of hours of work per week is regulated by contracts that directly or indirectly affect 80 percent of the working population. The average workweek for industrial workers is 36 hours in the western part of the country and approximately 39 hours in the eastern states; rest periods for lunch are accepted practices. Provisions for overtime, holiday, and weekend pay vary depending upon the applicable collective bargaining agreement.

 

There is an extensive set of laws and regulations on occupational safety and health. A comprehensive system of worker insurance carriers enforces safety requirements in the workplace. The Labor Ministry and its counterparts in the states effectively enforce occupational safety and health standards through a network of government bodies, including the Federal Institute for Work Safety. At the local level, professional and trade associations--self-governing public corporations with delegates both from the employers and from the unions--oversee worker safety. The law provides for the right to refuse to perform dangerous or unhealthy work without jeopardy to continued employment.

 

Foreign workers legally in the country are protected by law and generally work in conditions equal to that of citizens; however, wage discrimination affects legal foreign workers to some extent. For example, foreign teachers in some schools are paid less than their German counterparts. In addition seasonal workers from Eastern Europe who come to the country on temporary work permits often receive wages below normal German standards. Furthermore workers from other EU countries at times are employed at the same wages that they would receive in their home country, even if the corresponding German worker would receive a higher wage. Foreigners who are employed illegally, particularly in the construction industry in Berlin, are likely to receive substandard wages.

 

 f.      Trafficking in Persons

 

The law prohibits trafficking in persons; however, trafficking in persons, primarily women and girls for sexual exploitation, was a serious problem.

 

Germany is a destination and transit country for trafficking in persons, overwhelmingly women and girls. Most trafficking victims are women and girls between the ages of 16 and 25 who are forced to work as prostitutes; according to police statistics, less than 0.5 percent of trafficking victims are men or boys. Estimates vary considerably on the number of women and girls trafficked to and through the country; they range from 2,000 to 20,000 per year. Approximately 80 percent of trafficking victims come from Eastern Europe and the countries of the former Soviet Union, primarily from Poland, Ukraine, Russia, Lithuania, Slovakia, Latvia, and the Czech Republic. Frequently crime rings will traffic women who have already been caught in, and deported from, one European country to another European country. The other 20 percent of trafficking victims come from Southeast Asia, Africa, and Latin America.

 

GERMANY - STANDARD WORKWEEK

The number of hours of work per week is regulated by contracts that directly or indirectly affect 80 percent of the working population. The average workweek for industrial workers is 36 hours in western Germany and about 39 hours in the eastern states.

 

GERMANY - SOCIAL SECURITY

Social Security Office of International Programs:

 

http://www.ssa.gov/SSA_Home.html

 

GERMANY - TOTALIZATION AGREEMENT WITH U.S.

Effective Date of Agreement: December 1, 1979

 

Coverage and Social Security Taxes:  

 

If the employee is a German national working in the U.S. for the German government or is sent to work in the U.S. on a temporary basis, taxes and coverage fall to Germany. If the employee was sent (or hired in the U.S.) by a German employer to work in the U.S. on a permanent or indefinite basis, taxes and coverage fall to the U.S. 

 

Certificate of Coverage Request: 

 

To establish exemption from coverage under the U.S. Social Security system, an employer must request a certificate of coverage from the local German Sickness fund to which the employer pays Social Security taxes in Germany, providing the same information required for a certificate of coverage from the U.S. expect that the German Social Security number should be shown rather then the U.S. number.  

 

Minimum Credits Needed:

 

An employee without enough work credits to qualify for German benefits, but with at least 18 months of coverage under the Germany system, may combine Social Security credits from the U.S. and Germany to meet eligibility requirements.

 

Summary of Social Security Benefits:

 

Workers receive retirement or old-age benefits at age 65 but may qualify as early as age 60. Disability benefits are payable at any age of work capacity is reduced to less then 50%. There are no provisions for family benefits to dependents of retired or disabled workers. A widow (er) receives survivor benefits at any age if not remarried. Children receive orphan's benefits until age 18. There is no lump-sum death benefit.

 

Additional Information: 

 

For specific information on the German Social Security program, contact any branch office of a German insurance agency or a German diplomatic post, or write to:

 

Landesversicherungsanstalt

Freie und Hansestadt-Hamburg

Uberseering 10

Postfach

2000 Hamburg 60

Bundesrepublik DEUTSCHLAND

 

See Totalization Agreements