Expanding into Germany and hiring local employees is a big move for many US companies, and hiring employees in Germany as a US company often means adjusting to Germany’s more structured, documentation-heavy recruiting reality, from candidate expectations to compliance basics. In practice, Germany is a “paper trail and procedure” country, especially once you cross from hiring into the employment relationship.
Below is what actually matters, with a tight focus on German employment contracts, probation periods (Probezeit), and the hiring-process obligations that can surprise US employers.
1) Start earlier than the contract: Hiring in Germany is legally sensitive
Before you even get to signatures, German hiring has more legal “tripwires” than many US teams expect.
Anti-discrimination rules shape the process
Hiring decisions must be defensible as based on professional criteria. You don’t need a complicated scoring matrix, but you do want decisions that are understandable and documentable.
Practical approach:
- Define the role requirements before you post it.
- Use consistent interview questions tied to those requirements.
- Keep brief notes explaining why the chosen candidate best matched the criteria.
Formal obligations can apply during recruitment
One common surprise is procedural requirements involving the Federal Employment Agency, particularly in situations involving applicants with severe disabilities. In some cases, simply posting a vacancy is not enough. A process gap here can create legal exposure even if your final choice was objectively stronger.
2) German employment contracts: detail is not optional
In Germany, the contract is not a “nice-to-have”. It’s the rulebook both sides will be judged against.
Mandatory information (Evidence Act / Nachweisgesetz)
German employment contracts must include specific terms such as:
- Job role and duties
- Workplace (and whether remote work or travel is required)
- Salary structure (including overtime handling, if relevant)
- Working hours
- Vacation entitlement
- Notice periods
- Any probation period (Probezeit)
If you skip required items, you create avoidable risk, and you may end up arguing later about basics that should have been clear from day one.
Key contract components that reduce future disputes
- Start date and contract type: fixed-term vs indefinite
- Reporting lines: who the employee reports to
- Compensation details: base pay, pay schedule, bonuses/allowances, overtime rules
- Working time rules: expected schedule, breaks, shift work if applicable
- Leave entitlements: vacation, sick leave basics, parental leave awareness
- Language clarity: a German version is best practice because German law is applied in German
3) Written documentation is king (and timing matters)
Unlike many US contexts where informal agreements can float around until “paperwork catches up,” Germany expects clear written terms, delivered promptly.
Best practice for US employers: treat the contract as a pre-boarding deliverable, not a week-two cleanup task.
4) Probation periods (Probezeit): a useful window, but not a loophole
Probation in Germany is designed for mutual fit checking, and it’s one of the few times the relationship has a bit more flexibility.
Duration and notice during probation
- Probation can be set up to a maximum of 6 months
- During probation, termination is typically possible with 2 weeks’ notice (for either side)
Termination is simpler, but still not “anything goes”
Even during Probezeit, terminations cannot violate anti-discrimination rules or other legal protections. This is another reason interview and selection documentation matters: it supports the story that decisions were professional and consistent.
Use probation for cultural and performance alignment
Germany tends to value directness and clarity. Probation is the ideal time to:
- Set performance expectations in writing
- Schedule early feedback check-ins
- Confirm working style norms (documentation, punctuality, decision-making)
Once probation ends, employee protections become significantly stronger, and termination becomes much harder to manage without well-kept documentation.
5) Three practical steps before hiring in Germany
- Define the role and required qualifications clearly before publishing the job.
- Keep basic documentation of interviews and selection decisions.
- Ensure your job posting process aligns with German formal requirements, including proper coordination with the Federal Employment Agency when applicable.
Key takeaway for US companies
Germany offers strong talent and a stable labor market, but the “default settings” differ from the US. If you treat hiring documentation, formal recruiting obligations, and contract precision as core parts of the process (not admin chores), you’ll build a safer, stronger team and avoid expensive, time-draining disputes later.