essential terms explained in plain language.
115 terms
Severance pay — a one-time payment from an employer to an employee upon termination of employment, often negotiated as part of a termination agreement (Aufhebungsvertrag). Not legally required but common.
Federal Employment Agency (Bundesagentur für Arbeit) — manages unemployment benefits (ALG I) and job placement.
Work permit — authorization for non-EU citizens to work in Germany.
Unemployment benefit — ALG I is contribution-based; ALG II (Bürgergeld) is means-tested support.
Employment contract — the legal agreement between employer and employee.
Employment reference letter — a formal document issued by an employer when an employee leaves. Required for most job applications in Germany. Einfaches Zeugnis (basic) or Qualifiziertes Zeugnis (with performance assessment).
Employment agency — government office managing Bürgergeld (ALG II) and job placement services.
Protection against dismissal — legal protections preventing employers from terminating employment without just cause.
Short-time work — a government-supported scheme allowing employers to temporarily reduce working hours instead of laying off staff. Employees receive Kurzarbeitergeld (approx. 60–67% of lost net wages) from the Agentur für Arbeit.
Probationary period — the initial period of employment (typically 3–6 months) during which either party can terminate the contract with 2 weeks' notice and without needing to state a reason.
Die Probezeit beträgt 6 Monate.