§ Labor law
§ Labor law
Your employment and labor law lawyer
The law firm Gräf & Centorbi offers experienced legal representation in a broad range of employment-related matters. With more than two decades of experience in employment and labor law, our lawyers are committed to providing our clients (both employers and employees) with high-quality personalized service and achieving the best possible results.
Representing employers and employees we gained a deeper understanding of the needs and requirements of both parties. Thus we inform our clients about their rights and obligations within an employment relationship and provide optimal solutions and results.
Whether you need general advice regarding an employment matter, are litigating a case against an employer or are negotiating an employment agreement, our lawyers are here to help you make the most out of your case.
The German legislator differentiates between two types of labor law: private employment law and collective employment law.
Private employment law for single persons
Private employment law includes the regulations within a legal relationship between single employers and employees. Our specialist lawyer for labor law will inform you on how this relationship is going to take place and which questions might occur.
Collective employment law for trade unions and staff associations
Collective employment law regulates the relation between representatives of employees’ interests (trade unions, works council) and employers as well as employer organizations. These regulations form the basis for an employment contract which our lawyer specialized on labor law will carefully check for you.
Employer and employee in the same legal boat
Whenever our lawyer specialized on labor law drafts out an employment contract, he proofs which legal regulations or collective agreement provisions must be considered. Both employers and employees are subject to relevant legal regulations concerning labor law and collective employment law. This fact limits the individual contractual freedom of the parties in some cases.
Global labor relations – foreign employer and german employee
The law firm Gräf & Centorbi provide clients with extensive support in managing global labor relations.
Hiring an employee from a foreign country especially from Germany, complying with local labor, tax, social security, health insurance and legislation can be risky without a professional handling. Let us help you make the best out of your employment relationship and secure your business.
These steps are necessary for a foreign company in order to hire a German employee:
Employers who are employing an employee require a company number to register with the social security authorities and to pay the social security contributions. The company number is assigned on application by the Company Number Service of the Federal Employment Agency in Saarbrücken. After approx. three working days the company number that has been newly assigned will also be known to the German social insurance agencies. We therefore recommend to wait three days before the first registration is transmitted to the social security authorities.
Registration with social security authorities
Upon the registration with the social insurance authorities, the employer informs the health insurance fund about the start of employment and transmits certain information on the employed person and the employment. As a company you need to ask your employee which German pension insurance fund he has selected.
The employee’s personal information should be taken from official documents of the employee, such as the social security number from the social security card. If the employee does not yet have a social security number, due to the fact he has never been employed, for instance, the registration requires more of his personal details about him (place of birth, name at birth and date of birth).
Registrations sent to the social security authorities are performed by means of electronic data transfer.
The employer’s duties include determining the wage that is subject to social security contributions that must be paid for each employee and to calculate the contributions from this.
Statement of contributions
By means of the statement of contribution the employer provides notice before the payment date of the sum total of deductions, which he will pay in total for all employees for one month. The information is therefore not personal, but recorded as a total amount. Here the sum of the contributions consists of contributions towards health and nursing care insurance, pension and unemployment insurance as well as the employer’s insurance and insolvency fund contributions.
The statement of contributions must – in the same way as the notifications sent to the social security authorities – be transmitted by means of approved system-tested programmes or by means of a computer-generated completion aid.
The contributions must have been received by the Bundesknappschaft insurance fund by the due date at the latest.
The easiest and most convenient way of paying the contribution is by providing the Bundesknapschaft insurance fund with a SEPA direct debit mandate. This thus guarantees the contributions are debited on time. In addition, there is the possibility to transfer contributions to an account.
Bank transfers from abroad may take some time. Companies need to take account of this when performing bank transfers. If the payment is not made on time penalty charges will be raised.
For each employee who is liable for compulsory insurance on 31 December of each year, an annual return must be produced with the first following wage and payroll accounting statement, at the latest by 15 February of the following year.
By means of the annual return, the employer informs the health insurance fund of the employee’s annual earnings, which were used to calculate the contribution. This value is forwarded by the health insurance company to the pension insurance institution responsible for the employee and will later be used as a basis for the calculation of the pension.
Many of our lawyers have years of experience helping foreign-based corporations address labor and employment challenges. Thus for example we draft employment agreements and provide advice regarding employment relationship.