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WORKING IN GERMANY

EXPLAINED: What you should know if you want to quit your job in Germany

There are a few official steps to follow if you decide to quit your job in Germany - whether or not you have another one lined up.

Work contract
A German work contract 'Arbeitsvertrag' might specify how much advance notice you need to give to leave a job. Photo: picture alliance/dpa/dpa-tmn | Klaus-Dietmar Gabbert

Maybe you want to quit your current job in Germany because you found another one (logical, right?). Or maybe you decided to make the switch to freelancing, or simply have saved up for a self-funded sabbatical on a picturesque island.

Whatever your reasoning, there’s a process – like everything else in the Bundesrepublik – for giving up your position. And if you’re not moving onto another one right away, you could even qualify for unemployment benefits – despite voluntarily giving up your job.

Here’s what you need to know about moving on.

How to get started

Even if you’re disenchanted with your current employer and dream of making a cinematic “I QUIT” announcement to a packed room of clapping employees, that’s probably not the way to go about it.

As with many other countries, it’s the norm in Germany to first schedule a friendly chat (officially Kündigungsgespräch, or termination interview) with your direct manager – ideally face-to-face, but a video chat in the post-Covid era is usually fine too.

READ ALSO: The words and phrases you need to navigate the German job market

Come prepared to lay out the reasons you’re leaving, but stay away from negativity, advises German jobs-seeking website Stepstone. Rather, express your gratitude for what you’ve gotten out of the position – be it new skills or supportive colleagues – and propose how you want to wrap up your remaining tasks in the time before you go (which in most cases should be at least a month away).

Put it in writing 

OK, you’ve made it through that announcement with as few awkward verbal stumbles as possible. Now you can take a bit more time to formulate an official letter. Section 623 of the German Civil Code says that you must do so for the termination to be official.

Note that this can’t be in email form, but rather needs to be a structured official letter which includes the firm’s address in the upper left corner, followed by a date and subject line, usually Kündigung meines Arbeitsvertrags (Cancellation of my work contract). 

The first step of quitting your job in Germany is chatting with your manager. Photo by Tima Miroshnichenko from Pexels

You can also elaborate with a “vom” (from the) at the end, giving the exact date on which you plan to leave, and have ideally already discussed with your supervisor.

As with your initial conversation with your supervisor, keep the content polite and factually lay out your reasons for leaving the job. If you do have gripes, larger companies may offer an exit interview, which would be a prime time to lay them out.

Some contracts will specify how much advance notice you need to give before quitting your job. But when nothing’s in writing, German law states that an employee needs to give at least four weeks’ notice, starting at the 15th or the end of the month.

The exception to this rule is for employees in the 6-month long probation period, in which a two-week notification period, regardless of the day of the month, is accepted.

Only in extreme circumstances, for example, if an employer mistreats an employee or does something illegal, is a fristlose Kündigung (termination without a deadline) allowed. 

Make sure it’s received

So you’ve taken the steps to ensure that your Kündigungsbrief (termination letter) is figuratively well received by your manager, but you should make sure that it’s also physically received in the first place. You can send it to your manager or HR department via registered mail, or hand it over in person.

In the letter itself, you can also ask for confirmation of receipt. 

Check how many vacation days you have left

Your last day in the office (even in Home Office) is not necessarily your last official day: be sure to check with your HR department how many paid vacation days you have left, as this time will need to be taken during your notification period. Alternatively, your employer may allow you to be paid for any untaken holiday allowance if you would prefer the extra money in your final pay packet rather than taking the holiday days before leaving your job.

READ ALSO: Vacation days: What to know about your rights as an employee

Plan ahead for future jobs

In Germany, you have a legal right to a letter of reference (Arbeitszeugnis) from the company as soon as you’ve given your official notice. You can then use this statement to apply to other employers. 

A person at a job interview in Germany.

A person at a job interview in Germany. Photo: picture alliance/dpa/dpa-tmn | Christin Klose

Of course, if you had a tense relationship with your boss, such a letter could hurt more than hinder your chances with another company.  But if there were just small misunderstandings in an otherwise pleasant work relationship, getting such a testament early on will give you time to go back to your manager and talk about how the letter could be reworded.

Apply for unemployment benefits, if necessary

If you left the job voluntarily, the German Employment Agency normally imposes a three-month blocking period (Sperrzeit) – this means that you are not entitled to unemployment benefits during this time. However, while you won’t receive money from the job centre during this time, they will generally cover your health insurance payments.  

READ ALSO: Do Germany’s unemployment benefits proposals go far enough?

But if you don’t have a new employment contract lined up directly following your previous job, you’ll still need to register as unemployed on the first day outside of the job at the latest, regardless of the Sperrzeit, to be sure to receive benefits on time. 

The earliest you can register as unemployed is three months before you actually become unemployed. If one or more of the following cases apply to you, the Sperrzeit period can also be waived:

  • You can prove that you had a firm commitment to a new position that has fallen through.
  • You rightly resigned without notice, for example because your employer did not pay you.
  • You want to move in with someone else so you can take care of your children together.
  • It can be proven that you are overwhelmed by your job (e.g. after submitting a medical certificate).

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TAXES

EXPLAINED: How do you close down a freelance business in Germany?

Leaving the country? Got a steady job offer you can’t say no to? Winding down your self-employment activities in Germany still requires taking a few bureaucratic steps.

EXPLAINED: How do you close down a freelance business in Germany?

Striking out on your own as self-employed is one of the scariest – and potentially most rewarding things – you can do. In Germany, it also comes with its own set of rules around tax and social insurance.

But there are times when – for whatever reason – it may be time to move on.

Whether it’s because you have an exciting new opportunity or things haven’t quite worked out the way you hoped due to economic pressures – winding down self-employment the right way is crucial to avoid gaps in your health and social insurance coverage in Germany.

The steps you have to take are also a bit different depending on if you are new self-employed (Freiberufler) or have a trade licence (Gewerbe) – with some steps not being necessary for new self-employed.

Trade licences are automatically cancelled if the licenced person dies or the company ceases to have financial assets.

Resigning the trade licence or declaring it dormant

New self-employed people like writers or speakers don’t need to go through this step, as they don’t need a trade licence.

Those who have a trade licence will need to contact their competent local authority and resign it, or declare it dormant (withdrawing the licence). If you’re only winding down temporarily, declaring your trade licence dormant instead of de-registering completely may save you a few headaches later.

You may have to do this in person at your local trade office – or Gewerbeamt – depending on whether your local authority allows online de-registration or not. You’ll need to bring your official ID, trade licence, confirmation of registration and possibly an extract from the trade register. Fees are dependent on your local authority and can range from being free to €25.

You can declare the date you intend to resign the licence – which can be in the future. To ensure no gaps in your social insurance protections, including health insurance, set this date for the day before whatever comes next. For example, if you’re starting a new job on January 1st set the date for your trade licence to expire as December 31st.

The trade office will typically notify your local tax office, so you won’t need to do this yourself.

Notifying your tax office

If you’ve had to resign your trade licence, you can skip this step as your trade office will do it for you. If you’re a Freiberufler without a trade licence you need to resign, you’ll have to notify your local Finanzamt, or tax office, yourself.

Luckily, this is a pretty easy step.

First, you need to decide whether you’re ceasing operations completely or wanting to continue them part-time. If you’re ceasing completely, you’ll end up surrendering your self-employed tax number.

You don’t have to do this though. If you think you may still carry on some self-employed business as a side gig, you can inform the tax office that you intend to do so and keep your number.

At that point, the tax office should treat you as a Kleinunternehmer – or a small business making less than €22,000 a year. Having this status means that you will not need to pre-pay taxes or charge VAT on your invoices for freelance side projects.

If you derive any income from your side gig in the future though, you’ll still have to file a tax return.

READ ALSO: Can I have a freelance side gig as an employee in Germany?

Notifying your health insurance

While different private plans in Germany may have different notification requirements, if you have public health insurance in Germany, you should notify them that you’re winding up your self-employed business. Specifically, advise them exactly what date you’re wrapping up.

Again, this should be right before you start your new job or leave the country, to ensure no gaps in your coverage.

If ending your self-employment in Germany, take care to ensure that there’s no gaps in your health insurance coverage, by giving the right date for when you’re ceasing activity. You don’t want to be caught without coverage. Photo by Stephen Andrews on Unsplash

If you are in an artistic profession and thus pay pension, health, and nursing insurance through the Artist Social Insurance Fund (KSK), you should also advise them as well. If you’re leaving self-employment completely, you can typically give notice to KSK as to when it’s ending.

If you’re not, and intend to still make money freelancing as a side gig, they should know this as well. In this event, you’ll no longer pay health or care insurance through KSK, as this is covered through your main job.

You may need to continue to pay pension contributions through KSK based on the amount of money you still make from self-employed activities — depending on how much of them you continue.

KSK: How creative freelancers can pay less for German health insurance

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