The year 2024 brought significant changes to German labour law and employee regulations. These changes have far-reaching implications for companies operating in Germany. This article provides an overview of the top five vital changes for companies to understand and implement.
1. Increase in Minimum Wage
The statutory minimum wage in Germany increased to €12.41 per hour starting January 1, 2024. This adjustment is part of a progressive plan, with a further increase to €12.82 scheduled for 2025. The rise in minimum wage affects the financial planning of companies, particularly those employing a large number of minimum wage workers.
Additionally, the increase impacts the threshold for low-paid employment, or “mini-jobs,” which is now dynamically linked to the minimum wage and will rise accordingly. Employers must adjust their payroll systems and budgeting to accommodate these changes, ensuring compliance while managing labour costs effectively.
2. Skilled Worker Immigration Facilitation
To address workforce shortages, Germany has eased the process for skilled workers from outside the EU to find employment within the country. The new regulations include short-term employment opportunities in high-demand sectors and allow skilled workers with at least two years of professional experience and recognised qualifications to work in non-regulated professions.
This change is a strategic move to mitigate labour shortages and presents a significant opportunity for companies in need of specialised skills. The introduction of the Opportunity Card, lowered salary thresholds for EU Blue Card holders, and an accelerated approval process for skilled workers are additional measures to attract foreign talent.
3. Whistleblower Protections and Reporting Channels
Source: Freepik
The Whistleblower Protection Act, which came into full effect in December 2023, mandates employers with more than 50 employees to establish reporting channels for whistleblowers. The Act covers a broad range of violations and includes protections against retaliation for good-faith whistleblowers. Companies must offer internal reporting lines and handle reports with properly staffed functions.
The Act also allows for anonymous reporting, although it is not mandatory, and sets deadlines for processing reports and providing feedback to whistleblowers. The introduction of this Act underscores the importance of transparency and ethical conduct in the workplace.
4. Changes to Leaves of Absence Regulations
Updates to leaves of absence regulations have been implemented, including changes to sickness leave, parental leave, and child sickness benefits. The new regulation increases the number of sick days a parent can take for each child, providing greater support for working parents. These changes aim to alleviate stress for parents and ensure children receive proper care while balancing the operational needs of employers.
5. Increased Compensatory Levy for Disability Hiring Quotas
Source: Freepik
The Compensatory Levy, paid by employers who do not meet the required quotas for hiring severely disabled individuals, has been increased. This change encourages companies to hire more disabled workers and promotes inclusivity in the workplace. Employers must be aware of this change to avoid financial penalties and to support the integration of disabled individuals into the workforce.
–
The 2024 changes in German labour law and employee regulations reflect a commitment to improving the working conditions for employees, fostering inclusivity, and addressing labour market challenges. Companies must adapt to these changes by updating their policies, financial planning, and human resources practices. Legal consultation and diligent implementation of these new regulations are essential to ensure compliance and to leverage the opportunities presented by these changes.
It is recommended that companies operating in Germany stay informed about ongoing updates to labor laws and employee regulations to maintain compliance and support a fair and competitive business environment.
