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A few months till Christmas – and why this matters for finding a job in Germany

German jobs expert Chris Pyak explains why more employers are looking to hire at this time of year.

Published: 2 September 2019 16:19 CEST
A few months till Christmas - and why this matters for finding a job in Germany
Find a job before Christmas, and celebrate when it roles around. Photo: Depositphotos/ArturVerkhovetskiy

There are a few more months to go until Christmas.

More people find jobs in the time between the end of the summer holidays and Christmas eve than in the rest of the year combined.

Managers return from their vacation full of energy and tackle one of their most noble goals: Avoiding budget cuts for the following year. This is just one reason why employers in Germany are keen on hiring in the last quarter of the year.

This is a piece about timing in your job search – and how you use it to your advantage.

SEE ALSO: Find a job in Germany

Companies place job ads throughout the year. But the truth is: Often they are not in a hurry to actually fill those positions. There are even job ads that are not meant to actually attract candidates.

Rather, their sole purpose is to demonstrate growth to investors or mislead the competition. This is something I had to learn the hard way while I still worked as a headhunter. I spent long hours and lots of money in finding the right candidate, just to hear that the company changed their mind and wasn't in a hurry to hire at all.

Many companies are in no rush to sign a work contract even after they already decided that you are the right person for the job. I don't have a rational explanation for this.

More than a vague idea

My guess is: It comes down to human nature. Someone has to sign your contract and that task is simply not very high on their list of priorities.

So, there's the weekend and then someone goes on holiday and “we haven't heard back from the Betriebsrat*…” Don't be surprised if it takes several weeks to sign a work contract after the verbal confirmation that you got the job.

After the summer holidays this changes. Managers have to secure their budget for the coming year. It's much easier to justify your funding demands if you already have “bums in seats” instead of a vague idea when you will hire someone.

The result is simple: For once your interest and the employer's interest align: You both want to sign the contract as fast as possible.

Photo: Depositphotos/pressmaster

That's why I strongly advise that you make good use of these days till Christmas. You might find employers are way more open to talk with you.

We light the candles on the Christmas tree on  December 24th in Germany. A lot of expats will find their next job before this happens.

But: It's important to understand whose interest align here. It's your wish for fast employment and your future department head’s wish for a complete team. So the manager is the one that you have to talk to. For HR nothing changes. Because for them nothing is at stake. Business as usual.

To move your career on the fast track: Talk to those who have the same urgency as you. Your future supervisor.

ABOUT CHRIS PYAK

Chris Pyak is the Author of “How To Win Jobs & Influence Germans“. The managing director of Immigrant Spirit GmbH has worked in four different cultures and lived in five different countries.

Chris returned to Germany in 2011. His mission: Bring the Immigrant Spirit to his home country. Chris introduces international professionals to employers in Germany.

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WORKING IN GERMANY

Reader Question: Can I have a freelance side gig as an employee in Germany?

Going freelance in Germany - or even starting a side hustle - can be a rewarding and exciting challenge. But it can come with its own bureaucratic challenges. What are the rules around having a freelance gig if you already have a job?

Published: 30 April 2024 10:06 CEST
Updated: 30 April 2024 15:52 CEST
Reader Question: Can I have a freelance side gig as an employee in Germany?

Whether it’s to try out freelancing or simply to earn a bit of extra money, many people in Germany may have thought about trying out a side gig – or a nebenberufliche Tätigkeit – while they still have a job. It might be an especially attractive option for part-time workers looking to try out a new project as well.

Germany generally allows this, provided that your employment contract doesn’t prohibit it explicitly.

That’s why the first thing you should do if you’re thinking about starting a side hustle is to read your employment contract.

At first, you’re looking to see if side gigs are explicitly prohibited. If there’s no explicit mention of it being prohibited, the next thing to look for is whether you need to seek the company’s permission – possibly through their HR department – to take up your side gig. If you do, this will be explicitly spelled out in your contract.

Once you do that, you need to check and see whether your side gig falls under the Trade Act (Gewerbeordnung). If it does, you will have to apply for the corresponding business license. If it doesn’t, you can be classed as a Freiberufler – or freelancer – and won’t need a special licence to start your business.

You’ll need to do some homework on what kind of business you are – and you’ll need to register with the tax office. Photo: picture alliance/dpa/dpa-tmn | Benjamin Nolte

However in both cases, you will still have to register with your local tax office (Finanzamt). 

In Germany, some professions will require you to have a Befähigungsnachweis – “certificate of competence” – proving you have expertise in your area and are appropriately accredited. These include regulated trades like working as a financial advisor or real estate agent.

Other trades, like marketing services and hospitality, won’t need such a certificate, but you might still be classed as a Gewerbe – which brings some different rules with it. Those who belong to the so-called “new self-employed”, such as artists, writers and journalists, are Freiberufler and don’t need a trade licence.

READ ALSO: Everything you need to know about becoming a freelancer in Germany

Do I need extra insurance?

For your job as an employee, you already will have the necessary health, care and pension insurance – with your contributions from your income there getting taken off your payslip.

If you have a side gig, you remain insured through your main job and don’t need to take out additional insurance. Your contributions – based on the income from your main job – will remain the same.

This changes if your side hustle becomes your main hustle – measured by your working hours. As long as the number of working hours you spend on your side hustle amount to less than your main job, you don’t need extra insurance.

In most cases, having a side hustle in Germany won’t impact your health insurance eligibility or contributions. Photo: thirdman /Pexels

The exception to this is if you take on an employee who works more hours than a mini-jobber. Hiring a mini-jobber is still fine.

If your side hustle does become your main hustle and you’re publicly insured, you need to advise your Krankenkasse.

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

What income tax do I have to pay?

First up, Germany has a tax class basically designed for second jobs. It’s called Tax Class 6 and it exists alongside your other tax class. That means that the income from your main job will be taxed according to the rules of one of five different tax classes. Which one you belong to in this case depends on family variables like your marital status or whether you’re a single parent.

Tax class 6, however, doesn’t take any of these variables into account and exists only for your side income. As such, your main employment income will never be taxed according to tax class 6 and your side income won’t receive the breaks and credits that your main income will if you normally belong to a tax class that gives you any advantages.

Tax class 6 will apply to any income you earn on your side hustle above €538 a month. Anything you earn up to this amount though is exempt from additional tax.

It’s important to note that if you do earn more than the monthly €538 minimum on your side hustle and thus have income subject to Tax class 6, you’ll need to file a tax return.

EXPLAINED: What German tax class are you in?

Do I have to charge VAT?

If your side hustle is earning you €22,000 a year or less, you can class yourself as a “small firm” or Kleinunternehmer – and you don’t need to charge VAT on your invoices. This is also the case if you earn above this amount but your income is earned abroad or from foreign clients. 

If you earn above that amount and work with German clients, then you will need to charge VAT and submit VAT returns to the Finanzamt. There can be advantages in doing this though, as it’s through these returns that you can get VAT back that you spend on legitimate business expenses.

EXPLAINED: What are the best bank accounts in Germany for freelancers?

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