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Phaidon International provides the central structure that supports 8 specialist recruitment firms. We are proud to deliver excellence to clients across 44 countries in 28 key markets through our niche brands who have won over 33 independent awards. We regularly place candidates internationally and support them throughout the relocation process, striving to ensure they arrive fully prepared and ready to start their new role. This webinar presentation provides support and guidance on all aspects of relocation, including information on; - Employment Law - Dr. Steffen Görres, Bryan Cave, International Law Firm - Housing: Buying and Renting - Ingrid Henke, ARRIVA Relocation Services - Visas and Immigration - Beate Thierauf, Swift Relocation Services - Integrating into Germany - Katalin Geis, KaleidosGlobe Relocation Services - The Moving Process - Alistair Hunt, AGS Worldwide Movers For further information about relocating to Germany, please feel free to contact us: [email protected]
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RELOC ATING TO GERMANY
Your Photo Here
Andrew McNeilis
Chief Operating Officer
” Why relocate to Germany?
” Employment Law in Germany
” Visas & Immigration
” Housing in Germany (Buying & Renting)
” Integrating into Germany
” The Moving Process
” Q&A
Andrew McNeilis
Chief Operating Officer
Phaidon International, London
Dr. Steffen Görres
Bryan Cave,
International Law Firm, Hamburg
Beate Thierauf
Swift
Relocation Services, Munich
Ingrid Henke
ARRIVA
Relocation Services, Berlin
Katalin Geis
KaleidosGlobe
Relocation Services, Hamburg
Alistair Hunt
AGS Worldwide Movers
International Co-ordination and
Logistics
Micro-Specialist Recruitment Group of 8 Specialist Recruitment Brands
WHY RELOC ATE TO GERMANY?
• Recent survey conducted concluded a very high appetite for relocation
across a number of industries - 60-95% of respondents were likely or actively
looking to relocate depending on their market
• Relocation can leverage your career ” our recent survey of over 2000
professionals found Career Progression to be the main driver for relocation
• Germany is Europe's largest economy (Reuters)
• The German economy is growing
• 1.8% expected GDP growth in 2014 and 2% expected growth in 2015 ” this
is more than 4 times faster than in 2013 as a whole (German Economy
Ministry)
• Employment is on the rise
-The German Economy Ministry forecast a record number of 42.1 million
people in employment this year, up 240,000 from the levels reached in 2013
• There is increasingly a shortage of skilled workers in Germany
- Particularly in the fields of IT, Sciences, Mathematics and Engineering
• Great workers rights and employment protection
EMPLOYMENT LAW
Employment Law
Dr. Steffen Goerres
Specialised Attorney for Labour Law,
Hamburg
+49 40 30 33 16 128
Your Photo Here
• Significant Pro-Employee Protections
• No ‚at will‛ employment
• System focused on protecting employment relationship rather than providing damage
• Legal situation very much influenced by court decisions although there is a statutory
law system in Germany
• Written references from prior employers are important
• Background checks restricted, usually to extent of employee’s consent
• Avoiding discrimination during hiring process is important
• No statutory minimum wage ” will be implemented within the next years as project
of the new German government
• Minimum wage system based on tariff agreement where such agreements apply.
• Christmas bonus very common
• Contributions to health insurance, nursing insurance, state pension insurance and
unemployment insurance is mandatory
• Contributions to mandatory social security insurances jointly funded by employer and
employee. Employer‘s contributions are in addition to gross salary
• May or may not be put in writing; oral or implied conclusion possible; offer letters not
common and not advisable
• Written statement of conditions of employment to be provided by employer no later
than one month from start of employment
• Fixed-term-contract:
• Without any special reason conclusion of contract permissible for up to 2 years; if no previous
employment contract with employer apparent. May be renewed thrice, if 2-year period is not
exceeded in total
• With an objective reason contractual limitations and time limits are not bound by the 2-year period
(e.g. special requirements for additional staff in seasonal businesses as an objective reasonable need
for fixed-term employment)
• Common for managing directors with a timeframe of 3 or 5 years
• Part-time contract:
• Very common
• Entitlement to reduction of contractual working time in firms with more than 15 regular employees
• Complex statutory differentiation between working time, resting time, on-call duty,
working breaks, times of travel etc
• Maximum daily working time: 8 hours.
• Extension to 10 hours possible; average working time within 24 weeks may not
exceed 8 hours daily
• Minimum ‚resting period‛, (continued period without working, between the end of a
working day and the start of a new working day): 11 hours
• Right to a 30-minutes-break for a 6-9 hours workday; 45 minutes minimum break for
workday exceeding 9 hours
• Statutory minimum holiday entitlement: 20 working days based on a 5 day working
week (respectively 24 days for a 6-day-working week)
• Most usual to grant more holidays in Germany; commonly between 25 and 30 days.
• During the holidays the contractual salary to be paid continuously
• Registered disabled persons have an additional entitlement of 5 days
• State-to-State variation of public holidays as additional entitlement to the normal
holiday entitlement ” between 8 to 15 public holidays depending on the place of work
• Employer’s obligation to continuous full payment of contractual salary from first day of
illness to a maximum of six weeks in case employment relationship existed for
minimum of four weeks
• Employee entitlement to receive (reduced) payment from health insurance after six
week period
• Maternity leave: 14 weeks in total (6 weeks before expected date of birth and 8
weeks after the birth)
• Full remuneration entitlement of employee
• Parental leave: up to child’s 3rd
birthday, very common for mothers rather than fathers
• Possibility of carrying forward a leave of up to 12 months of the 3 years total until
child is 8 years old with consent of employer
• Generally unpaid but system of state benefits
• General right to work for employee
• Garden leave only based on prior agreement - even after serving notice
• In practice, use of garden leave common after serving notice for high ranking
employees
• Payment in lieu is not permitted unless employee agrees
“ Key concept: Personal data belongs to an individual employee
“ Objective business need for use/transfer of data always required
“ Free consent of individual not accepted as valid (because employees are deemed not
to have free will)
“ Use and Transfer of Data outside the EU: Recipient with ‚safe-harbour‛ certification
and contracting under EU data protection regime and clearance by EU
“ HR processes to be as privacy-conscious as possible
• Based on the General Equal Treatment Act, prohibited by German law in the form of
direct and indirect discrimination
• Further protection against harassment, instructions to discriminate as well as victimization
on grounds of race, ethnic origin, religion, belief, age and sexual identity
• Most legal issues concerning Hiring (e.g. discriminatory job advertisement or selection
process).
• Due to sufficient pro-employee regulations only little litigative role
• No recognition of punitive damages in German Employment Law
• Traditionally little compensation for immaterial damages awarded by courts
• Termination by agreement
• Termination by serving notice, in writing (original signature required), employer’s ability
to prove delivery
• Different applicable notice periods with regard to duration of the employment ”
variation from one to seven months to the end of the calendar month after 20 years
of employment
• Termination without notice: important reasons i.e. gross misconduct allowing
termination with immediate effect
• Size threshold (more than 10 employees)
• Qualifying period (more than 6 months of service)
• Personal scope (employee ” not applicable on managing director)
• Justified reasons:
• Person ” occurrence regularly in form of dismissals due to illness. Negative prognosis
to be pre-estimated which does not allow for an amelioration of the situation
• Conduct ” occurrence regularly in case of infringements or in the range of
performance and require the pronouncement of at least one preceding warning for
comparable misbehavior
• Business/Redundancy ” Requirement of employer decision leading to at least one job-
cut
• Compliance with very strict framework conditions in order to be valid and binding:
“ Written form (sec. 74 para. 1 HGB)
“ Justification by a legitimate interest of the employer with regard to the
temporal, geographical and factual scope a post contractual non-compete
agreement
“ The simple desire to prohibit an employee from competing with the
employer for a certain period after the end of the employment contract as
such not sufficient
“ Restricted period of up to two years permissible (sec. 74 a para. 1 HGB)
“ Compensation: Obligation by the employer to pay compensation for the
duration of the restrictive covenant in the agreement (at least 50% of the last
contractual remuneration and benefits
Note: Incorrect clauses can be either unenforceable for the employer or even null and void!
• Trade unions = Industry associations of employees; conclusion of collective
agreements
• Guaranteed Right to strike for employees
• Conclusion of collective bargaining agreements as associations of employees
• E.g. regulation of remuneration for different groups of employees, claims for
vacation exceeding the statutory provisions etc
• Works Council = formal staff representative body in the employer‘s business units;
• Representation of employees vis-à-vis employer on the level of establishment
• Preconditions for implementation: 5 employees of the age of 18 + and eligible
to vote and 3 employees eligible as candidates (age of 18 + and 6 months +
length of service)
• Elections at 4 years intervals, not compulsory meaning that it only takes place
if the employees arranges for it
Co-determination
Consultation
Information
1. Respect cultural differences
2. Always acclimatize yourself to local law and practice
3. Avoid dangerous assumptions, such as:
” ‚Europe is one place‛
” ‚Californian law applies there‛
4. Every employee starts with an employment contract, either written (preferred) or
implied by labor court
5. Employment-at-will does not exist
VISAS & IMMIGRATION
Visas and Immigration
Beate Thierauf
Swift Relocation Services,
Munich
+49 (0)89 665 999 71
• All foreigners who are staying longer than 90 days in Germany and want to work or
study do need a visa if they do not belong to EU countries
” (Belgium, Bulgaria, Denmark, Estonia, Finnland, France, Greece, Great Britain,
Ireland, Iceland, Italy, Croatia, Latvia, Lithuania, Liechtenstein, Luxemburg, Malta,
Netherlands, Norway, Austria, Poland, Portugal, Rumania, Sweden, Slovakia,
Switzerland, Slowenia, Spain, Czech Republic, Hungary und Cyprus)
• There are certain NON-EU countries that are also exempted from an entry visa that
includes Australia, Israel, Japan, Canada, New Zealand, South Corea and USA
• Schengen Visa ” tourist visa
• Business Visa ” only applicable to participate in meetings
• Student visa ” if you want to study in Germany
• Work Visa - to take up work in Germany.
” The visa application has to be handed in at a German embassy in the country of
residence. If it is the first application the embassy will decide directly or involve the labor
office in the according city. Duration of the process is between 4 weeks ” 3 months
• Documents to be provided:
” Needs to be checked on the website of the German embassy in country of residence.
Sometimes they differ slightly in their requirements.
” Application forms filled in
” Biometric passport photos
” University degrees
” Marriage certificates
” Birth certificates of children
” Passports
” Employment contract with job description and updated cv/resume
• The application for a work visa is €60,00 per person
• For children under 18 it is €30,00
• All foreigners from NON-EU countries do need a work and/or residence permit
• The visa is usually issued for an initial period of three months and it needs to be extended in
Germany after arrival
• Blue Card § 19a” is possible for people holding a university degree from a German university or
from a foreign university recognized from the German government together with a work
contract. The minimum annual salary is €47.600
• If you do not hold a university degree but execute a job that is related to shortage occupation
for example, IT, Mechatronics, Electronics, Robotics etc. your annual salary has to exceed
€37.128
• If you are not a Blue Card candidate the application will be checked by the labor office and a
good explanation from the employer needs to be issued why that candidate is the preferred
choice and no German was found. This usually takes 1-4 weeks
• The fee for the application is €110,00 per permit
• Same requirements as for the visa process, only that the foreign office handles the
application directly
• Passport copy, employment contract, university degree, application form for
employment needs to be handed in and they decide within 1-4 weeks
• If they need to apply for a visa all above mentioned docs have to be handed to the
embassy
• If it is without visa a marriage certificate and birth certificate of the children needs to
be presented.
• Fees for the permit are €110,00 for adults and €60,00 for children.
HOUSING
1. Adverts in the classified section of newspapers ( usually in the weeekend
editions)
2. Real Estate Websites:
• Immobilienscout24.de
• Immonet.de
• Immowelt.de
• Immobilien.de
3. Real Estate Agencies (Makler/ Immobilenmakler)
Private companies/agents who offer properties to rent or to buy. On behalf of the landlord or seller.
They often don´t speak English.
Once a contract is made a commission/brokerage fee is due.
If the are members of a professional association like IVD- Immobilienverband Deutschland or RDM ” Ring
Deutscher Makler this might be an indication for professionalism.
Commission/brokerage fee*
For residential properties up to 2 months´ rent plus 19% VAT and for commercial properties up to 3
months´rent plus 19 % VAT are due at exchange of contract by tenant.
For properties to buy up to 6 % of the asking price plus VAT are due from the buyer
*In 2014 there might be changes asking the landlord or seller to pay the comission.
Sometimes the same property is offered by several real estate agencies. Be aware that you don´t get
involved in obligations to several ones. Stick to one agency and inform the other one that you already have
knowledge about the property they offer.
4. Relocation Services
• Create a needs profile, inform about neigborhoods, search for and preselect suitable locations,
coordinate appointments, accompany on house visits and organize and check the rental contract
• The relocation agencies charge an agreed fee for their services
In Germany most apartments are rented unfurnished, sometimes even without a fitted kitchen as well as without fitted
wardrobes often even without light fittings.
Unfurnished:
In these cases the rents are commonly known as ‚Kaltmiete ‚ ” ‚cold‚ basic rent without additional charges
‚ Nettokaltmiete‚ ” does not include additional costs like heating, water, garbage removal.
‚ Bruttokaltmiete‚ does not include heating costs, but additonal costs like water, garbage removal
‚ Warmmiete‚ ” basic rent, heating, water garbage removal - all additional costs included
But be aware that electricity for the apartment, telephone, internet is not included in the rent
After signing the rental agreement a deposit of at the most 3 monthly basic rents has to be paid
The rent for furnished apartments includes usually all the additional costs, as well as furniture supplement, internet use and
electricity.
If you buy a property you have to add additional costs of approximately 14 % to the sale price of the property. That includes real
estate agent´s provision, notary and tax „Grunderwerbssteuer‚ ” up to 6 % of the sale price
Tenants are very protected in Germany. It can be very difficult to cancel a rental agreement, if there are problems or the rent is not
paid. Therefore before signing a rental lease the landlord wants to make sure that the tenant is able to pay the rent. He will ask for the
following information:
• ID ”copy of passport
• Self certificate
• Schufa-Auskunft for Germany, or similar credit rating certificate.
• Proof of income, e.g. salary slips, letter or work contract from the employer -stating salary and duration of employment
• ‚ Mietschuldenfreiheitsbescheinigung‚ - A letter from the previous landlord stating that the rent was paid regularly
Most rental contracts in Germany are for an unlimited duration with 3 months notice for the tenant, The landlord usually can only
cancel the rental agreement in the following circumstances: the apartment will be used by him or a family member.
Or there are rental leases of limited period (Zeitmietvertrag) because the owner or a family member is planning to move in by himself
or because substantial refurbishment is planned.
Sometimes a minimum rental period of 1 or 2 years is agreed.
On hand over of the property to the tenant a written statement „Übergabeprotokoll‚ will be filled in, stating the condition of the
rented accomodation.
The cost of a property to rent varies by reagion and city
Usually rent and purchase prices are cheaper in rural areas
In the last years real estate prices went up in Germany
Very expensive cities are Munich, Frankfurt/Main, Stuttgart, Hamburg but Berlin prices are still quite
reasonable.
For example in Berlin the average cold rent per sqm* in a good location with reasonable good
standard is between 9 to 13 Euros plus additional costs around 2 to 4 € per sqm.
1 sqm is about 10.8 sqft
As an orientation an overview of average rents - ‚ Mietspiegel‚ - is available for most cities. But
don´t be surprised if the rent you are asked for is higher, as prices go up.
INTEGRATING INTO GERMANY
Integrating into Germany
Katalin Geis
KaleidosGlobe
Relocation Services, Hamburg
+49-40-38 61 07 85
Your Photo Here
A period of orientation and settling-in follows when the client has moved into the house or
apartment. Depending on the specific needs and requirements, on one or two days this program
provides information, consultation and assistance on topics like:
• Opening a bank account
• Shopping facilities
• Language training
• Public transport
• Social security system including statutory health
insurance
• Private insurances, such as health insurance, car
insurance , household- and liability insurance,
• Bilingual doctors and dentists
• Hospitals and emergency ambulance
• Information on churches and other religious
communities
• Embassies and Consulates
• Craftsmen / Handymen
• Babysitter, Au-Pair, Kindergarten
• German and international schools
• Vets, kennels
• Clubs and organizations for expatriates
• Cultural offerings
• Leisure and sports activities
• Emergency phone numbers
• Telephone and Internet
• TV and public television/radio tax
• Welcome-to-Germany Seminars
• Living and Working in Germany
• Cultural Awareness Seminars
• Intercultural Trainings for children
• Spouse Career Trainings
• Child benefit
• Kindergarten and Preschool in Germany
• German and International School System
• Juveniles and Vocational Training
• Leisure & Social Programs
• Music & Sport
• Learning Disabilities
• Protection of Minors
THE MOVING PROCESS
• 40 years experience
• 128 worldwide locations in 80 countries
• Family owned
• Door-to-door service
• 55,000 moves in 2013
• Preferred supplier for the German Ministry of Foreign Affairs
• Financially sound with turnover of $377m
• Your request
• Free pre-move survey
• Dedicated move co-ordinator
• Move day
• Transportation
• Delivery
• Prepare your home for sale
• Ensure visas are in place before moving
• Don’t leave appointing a removal company to the last minute
• Prepare for the packing day
• Arrange temporary accommodation before moving
• Research exchange rates
• Use your contacts to find a job for your spouse
• Keep the school year in mind
• Research destination for you and your family
• Investigate living costs
Methods of moving:
• Airfreight
• Sea freight - (FCL) Full Container Load, 20ft or 40ft
• Sea freight - (LCL) Less than Container Load
• Sea freight - Groupage
• Road freight
• Road freight CE
Vehicle shipping:
• Containerised Shipping
• Roll on roll off (RORO)
• Road freight
Storage:
• 2 Logistic hubs in Berlin and Koblenz
• Container store facilities in every major German city
• Specialist humidity controlled Fine Art storage
• Non-perishable items
Insurance:
• Full Replacement Marine Insurance Policy ” Underwritten by AXA
Our Clients
Q&A
Andrew McNeilis
Chief Operating Officer
Phaidon International, London
Dr. Steffen Görres
Bryan Cave,
International Law Firm, Hamburg
Beate Thierauf
Swift
Relocation Services, Munich
Ingrid Henke
ARRIVA
Relocation Services, Berlin
Katalin Geis
KaleidosGlobe
Relocation Services, Hamburg
Alistair Hunt
AGS Worldwide Movers
International Co-ordination and
Logistics
TO CONCLUDE
Following the webinar we will be releasing :
• ‚Relocating to Germany‛ webinar recording
• ‚Relocating to Germany‛ report
• ‚Relocating to Germany‛ podcast
Andrew McNeilis
Chief Operating Officer
Phaidon International, London
Dr. Steffen Görres
Bryan Cave,
International Law Firm, Hamburg
Beate Thierauf
Swift
Relocation Services, Munich
Ingrid Henke
ARRIVA
Relocation Services, Berlin
Katalin Geis
KaleidosGlobe
Relocation Services, Hamburg
Alistair Hunt
AGS Worldwide Movers
International Co-ordination and
Logistics
Looking for a new opportunity? Search our current vacancies:
Investment Banking - www.selbyjennings.com/vacancies/
Private Banking - www.carltonseniorappointments.com/vacancies/
Supply Chain & Procurement - www.dsjoperations.com/vacancies/
Finance and Audit - www.dsjprofessionalservices.com/vacancies/
Energy - www.lakinggroup.com/vacancies/
Renewable Energy - www.viridiumassociates.com/vacancies/
Life Sciences - www.epmscientific.com/vacancies/
Telecoms - www.glocomms.com/vacancies/
Human Resources www.sancusassociates.com/vacancies/
Looking to grow your team in Germany? Contact us directly: [email protected]