{"id":17592,"date":"2026-02-19T14:16:56","date_gmt":"2026-02-19T14:16:56","guid":{"rendered":"https:\/\/www.profion.de\/?p=17592"},"modified":"2026-06-18T12:53:06","modified_gmt":"2026-06-18T12:53:06","slug":"labor-law-thresholds-in-germany","status":"publish","type":"post","link":"https:\/\/www.profion.de\/en\/blog\/labor-law-thresholds-in-germany\/","title":{"rendered":"Labor law thresholds in Germany"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"17592\" class=\"elementor elementor-17592 elementor-17591\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ff4f80f e-flex e-con-boxed e-con e-parent\" data-id=\"ff4f80f\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-2d0e0f6 e-con-full e-flex e-con e-child\" data-id=\"2d0e0f6\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-53d3a7b elementor-widget elementor-widget-post-info\" data-id=\"53d3a7b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"post-info.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul class=\"elementor-inline-items elementor-icon-list-items elementor-post-info\">\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item elementor-repeater-item-67f6ca6 elementor-inline-item\" itemprop=\"author\">\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"far fa-user-circle\"><\/i>\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text elementor-post-info__item elementor-post-info__item--type-author\">\n\t\t\t\t\t\t\t\t\t\tIris Zank\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t<li class=\"elementor-icon-list-item elementor-repeater-item-be75ac1 elementor-inline-item\" itemprop=\"datePublished\">\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-calendar\"><\/i>\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text elementor-post-info__item elementor-post-info__item--type-date\">\n\t\t\t\t\t\t\t\t\t\t<time>19\/02\/2026<\/time>\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t<\/ul>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0fb56ce elementor-widget elementor-widget-heading\" data-id=\"0fb56ce\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Why the number of employees is decisive in German labor law<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8f16be6 elementor-widget elementor-widget-text-editor\" data-id=\"8f16be6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Growth is a good indicator for businesses \u2013 more orders, more responsibility, greater success.<\/p><p>In Germany, however, growth also equates to <strong>more legal obligations<\/strong>. This is because German labor law links a multitude of requirements directly to the company&#8217;s number of employees<\/p><p>The larger a company or business establishment is, the more extensive the legal obligations become\u2014<strong>from protection against dismissal and co-determination to data protection, occupational safety<\/strong>, and <strong>compliance requirements<\/strong>.<\/p><p>This density of regulations is exceptional by international standards. Many foreign companies underestimate the fact that in Germany, even a small number of new employees is sufficient to trigger additional legislative obligations.<\/p><p>The respective employee limit does not always refer to the entire company\u2014some regulations apply to individual operations (i.e., for <strong>each separate location<\/strong>), while others apply to the company as a whole (to the <strong>entire organization<\/strong>).<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-854f30c elementor-widget elementor-widget-heading\" data-id=\"854f30c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Overview of all relevant thresholds<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c58d409 elementor-widget elementor-widget-text-editor\" data-id=\"c58d409\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The following overview indicates <strong>which labor law obligations apply depending on the number of employees<\/strong> and aims to assist international employers in particular, to structure their personnel in Germany in a secure and compliant manner.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-83ced1a elementor-widget elementor-widget-n-accordion\" data-id=\"83ced1a\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;default_state&quot;:&quot;expanded&quot;,&quot;max_items_expended&quot;:&quot;one&quot;,&quot;n_accordion_animation_duration&quot;:{&quot;unit&quot;:&quot;ms&quot;,&quot;size&quot;:400,&quot;sizes&quot;:[]}}\" data-widget_type=\"nested-accordion.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"e-n-accordion\" aria-label=\"Accordion. Open links with Enter or Space, close with Escape, and navigate with Arrow Keys\">\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1380\" class=\"e-n-accordion-item\" open>\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"1\" tabindex=\"0\" aria-expanded=\"true\" aria-controls=\"e-n-accordion-item-1380\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> Starting with the first employee <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><i aria-hidden=\"true\" class=\"fas fa-caret-up\"><\/i><\/span>\n\t\t\t<span class='e-closed'><i aria-hidden=\"true\" class=\"fas fa-caret-right\"><\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1380\" class=\"elementor-element elementor-element-73511a4 e-con-full e-flex e-con e-child\" data-id=\"73511a4\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-5628a35 elementor-widget elementor-widget-text-editor\" data-id=\"5628a35\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li><strong>Maternity leave<\/strong> (company-specific): Prohibition of work for pregnant women six weeks before and eight weeks after childbirth (\u00a7 3 (1), (2) MuSchG).<\/li><li><strong>Occupational health and safety support<\/strong> (company-specific): Obligation to appoint company doctors and occupational safety specialists (\u00a7\u00a7 2, 5 ASiG).<\/li><li><strong>Data protection officer<\/strong> (company-specific): Appointment required if processing activities are carried out that are subject to a data protection impact assessment pursuant to Art. 35 GDPR (\u00a7 38 BDSG).<\/li><\/ul><p>Note: Occupational health and safety and maternity protection obligations apply from the first employee onwards &#8211; a fact that many smaller companies often overlook.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1381\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"2\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1381\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> From 5 employees <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><i aria-hidden=\"true\" class=\"fas fa-caret-up\"><\/i><\/span>\n\t\t\t<span class='e-closed'><i aria-hidden=\"true\" class=\"fas fa-caret-right\"><\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1381\" class=\"elementor-element elementor-element-f3bac27 e-con-full e-flex e-con e-child\" data-id=\"f3bac27\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-1eb25df elementor-widget elementor-widget-text-editor\" data-id=\"1eb25df\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li><strong>Works Council<\/strong> (company-specific): Election of a Works Council permitted (\u00a7 1, 9 BetrVG).<\/li><li><strong>Youth and apprenticeship\/trainee representative<\/strong> (company-specific): Election is possible if at least five young employees or apprentices under the age of 25 are employed. (\u00a7 60 BetrVG).<\/li><li><strong>Representation for severely disabled persons<\/strong> (company-specific): Election is possible if at least five severely disabled persons are employed (\u00a7 177 SGB IX).<\/li><\/ul><p>Even if these rights initially appear to be voluntary, employers should check at an early stage whether they need to support the corresponding co-determination mechanisms.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1382\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"3\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1382\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> From 10 employees <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><i aria-hidden=\"true\" class=\"fas fa-caret-up\"><\/i><\/span>\n\t\t\t<span class='e-closed'><i aria-hidden=\"true\" class=\"fas fa-caret-right\"><\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1382\" class=\"elementor-element elementor-element-c381885 e-con-full e-flex e-con e-child\" data-id=\"c381885\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-331dda0 elementor-widget elementor-widget-text-editor\" data-id=\"331dda0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li><strong>Unfair Dismissal Protection Act<\/strong> (KSchG) (company-specific): Applies within companies with more than ten employees (\u00a7 23 KSchG).<\/li><\/ul><p>Above this threshold, increased protection against dismissal applies. Employers must justify dismissals on social grounds (related to operational, behavioral, or personal reasons) while complying with formal requirements.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1383\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"4\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1383\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> From 15 employees <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><i aria-hidden=\"true\" class=\"fas fa-caret-up\"><\/i><\/span>\n\t\t\t<span class='e-closed'><i aria-hidden=\"true\" class=\"fas fa-caret-right\"><\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1383\" class=\"elementor-element elementor-element-e209a28 e-con-full e-flex e-con e-child\" data-id=\"e209a28\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-0d77c2e elementor-widget elementor-widget-text-editor\" data-id=\"0d77c2e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li><strong>Part-time entitlement<\/strong> (company-specific): Employees may request a reduction in working hours (\u00a7 8 TzBfG).<\/li><li><strong>Parental leave \u2013 part-time work during parental leave<\/strong> (company-specific): Entitlement to part-time work for up to 30 hours per week (\u00a7 15 BEEG).<\/li><li><strong>Care leave<\/strong> (company-specific): Entitlement to up to six months of care leave (\u00a7 3 PflegeZG).<\/li><\/ul><p>These regulations have a direct impact on personnel planning, team organization, and cover arrangements.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1384\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"5\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1384\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> From 20 employees <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><i aria-hidden=\"true\" class=\"fas fa-caret-up\"><\/i><\/span>\n\t\t\t<span class='e-closed'><i aria-hidden=\"true\" class=\"fas fa-caret-right\"><\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1384\" class=\"elementor-element elementor-element-70c6909 e-con-full e-flex e-con e-child\" data-id=\"70c6909\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-57a9602 elementor-widget elementor-widget-text-editor\" data-id=\"57a9602\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li><p><strong>Quota for severely disabled persons<\/strong> (company-specific): Obligation to employ at least 5% of severely disabled people or pay a compensatory levy (\u00a7 154 SGB IX).<\/p><\/li><li><p>\u00a0<\/p><strong>Safety Officer<\/strong> (company-specific): Appointment of a Safety Officer required (\u00a7 22 SGB VII).<\/li><\/ul><p>For small and medium-sized enterprises in particular, these obligations often represent their first encounter with formal compliance. In addition to reporting obligations, documentation requirements and internal audit duties arise.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1385\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"6\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1385\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> From 21 employees <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><i aria-hidden=\"true\" class=\"fas fa-caret-up\"><\/i><\/span>\n\t\t\t<span class='e-closed'><i aria-hidden=\"true\" class=\"fas fa-caret-right\"><\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1385\" class=\"elementor-element elementor-element-2eae577 e-con-full e-flex e-con e-child\" data-id=\"2eae577\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7bd61f4 elementor-widget elementor-widget-text-editor\" data-id=\"7bd61f4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li><strong>Co-determination rights of the Works Council<\/strong> (company-specific): Extended participation rights in individual personnel related matters (\u00a7 99 BetrVG).<\/li><li><strong>Social plan obligation<\/strong> (company-specific): Obligation to negotiate a social plan in the event of business operational changes (\u00a7 112a BetrVG).<\/li><\/ul><p>Operational changes include, for example, closures, mergers, relocations or significant changes in the organization.<\/p><p>Once a company reaches this size, it is almost impossible to bypass the issue of employee representation.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1386\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"7\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1386\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> From 50 employees <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><i aria-hidden=\"true\" class=\"fas fa-caret-up\"><\/i><\/span>\n\t\t\t<span class='e-closed'><i aria-hidden=\"true\" class=\"fas fa-caret-right\"><\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1386\" class=\"elementor-element elementor-element-8636dba e-con-full e-flex e-con e-child\" data-id=\"8636dba\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-55997b5 elementor-widget elementor-widget-text-editor\" data-id=\"55997b5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li><strong>Whistleblower Protection Act<\/strong> (company-specific): Obligation to set up an internal reporting mechanism for whistleblowers (\u00a7 12 HinSchG).<\/li><li><strong>Spokesperson committee<\/strong> (for senior executives): The option to form a spokesperson committee (\u00a7 1 SprAuG).<\/li><\/ul><p>Whistleblower systems are particularly relevant for companies operating internationally: It is not sufficient to simply set up a system on paper \u2013 it must be managed, documented and operated in compliance with data protection regulations.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1387\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"8\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1387\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> From 100 employees <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><i aria-hidden=\"true\" class=\"fas fa-caret-up\"><\/i><\/span>\n\t\t\t<span class='e-closed'><i aria-hidden=\"true\" class=\"fas fa-caret-right\"><\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1387\" class=\"elementor-element elementor-element-20304e3 e-con-full e-flex e-con e-child\" data-id=\"20304e3\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-1a0a237 elementor-widget elementor-widget-text-editor\" data-id=\"1a0a237\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li><b>Economic Affairs Committee<\/b> (company-specific): Obligation to establish an Economic Affairs Committee to advise on economic matters (\u00a7 106 BetrVG).<\/li><\/ul><p>The Economic Affairs Committee serves to promote the exchange of information on economic developments. For HR and company management, this entails regular reporting obligations to the Works Council.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1388\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"9\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1388\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> From 200 employees <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><i aria-hidden=\"true\" class=\"fas fa-caret-up\"><\/i><\/span>\n\t\t\t<span class='e-closed'><i aria-hidden=\"true\" class=\"fas fa-caret-right\"><\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1388\" class=\"elementor-element elementor-element-3cb512d e-con-full e-flex e-con e-child\" data-id=\"3cb512d\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-8e6039d elementor-widget elementor-widget-text-editor\" data-id=\"8e6039d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul>\n \t<li><strong>Exemption of Works Council members<\/strong> (company-specific): At least one Works Council member must be completely relieved of their work duties (\u00a7 38 BetrVG).<\/li><\/ul>\n Companies should plan early on how to compensate for the loss of working capacity due to exempted Works Council members.\n \t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1389\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"10\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1389\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> From 500 employees <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><i aria-hidden=\"true\" class=\"fas fa-caret-up\"><\/i><\/span>\n\t\t\t<span class='e-closed'><i aria-hidden=\"true\" class=\"fas fa-caret-right\"><\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1389\" class=\"elementor-element elementor-element-a1e970e e-con-full e-flex e-con e-child\" data-id=\"a1e970e\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-550fa89 elementor-widget elementor-widget-text-editor\" data-id=\"550fa89\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li><strong>The One-Third Participation Act<\/strong> (company-specific): One-third of the seats on the Supervisory Board must be filled by employee representatives ((\u00a7 1 DrittelbG).<\/li><\/ul><p>This rule applies to incorporated companies such as limited liability companies (GmbHs) or public limited companies (AGs) and significantly changes the composition and decision-making structure of corporate management.<\/p><p>\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-13810\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"11\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-13810\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> From 2,000 employees <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><i aria-hidden=\"true\" class=\"fas fa-caret-up\"><\/i><\/span>\n\t\t\t<span class='e-closed'><i aria-hidden=\"true\" class=\"fas fa-caret-right\"><\/i><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-13810\" class=\"elementor-element elementor-element-89cc434 e-con-full e-flex e-con e-child\" data-id=\"89cc434\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-d746405 elementor-widget elementor-widget-text-editor\" data-id=\"d746405\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul>\n \t<li><strong>Co-Determination Act<\/strong> (company-specific): Equal co-determination on the Supervisory Board \u2013 employees and shareholders each appoint 50% of the members (\u00a7 7 MitbestG).<\/li>\n<\/ul>\n\nThis means that full co-determination applies, as is typically the case in large corporations or German subsidiaries of international companies.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ed2db2c elementor-widget elementor-widget-heading\" data-id=\"ed2db2c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What are the potential consequences if companies choose to ignore these thresholds?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7d20aa6 elementor-widget elementor-widget-text-editor\" data-id=\"7d20aa6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Those who disregard the statutory thresholds under labor law are at risk of incurring more than mere formal grievances.<\/p><p>In Germany, violations of labor law obligations <b>can quickly lead to legal implications<\/b>, whether via employee claims, audits by authorities, or disputes with works councils.<\/p><p>The most common consequences are:<\/p><ul><li><strong>Fines and administrative sanctions<\/strong>: For example, violations of occupational health and safety, maternity protection, or safety regulations. Failure to set up a reporting mechanism in accordance with the Whistleblower Protection Act can also lead to substantial fines.<\/li><li><strong>Legal disadvantages in dismissal proceedings<\/strong>: If the threshold value of the Unfair Dismissal Protection Act is exceeded but ignored, dismissals are often deemed invalid \u2013 with the result that back pay, and legal costs must be compensated.<\/li><li><strong>Damage to reputation and trust<\/strong>: Particularly for international companies, a lack of compliance has a negative impact on employer reputation and employee engagement and retention. In industries such as the technology sector, life sciences, and finance, this can have a direct impact on an organization&#8217;s desirability as an employer.<\/li><li><strong>Additional claims and liability risks<\/strong>: If, for example, mandatory contributions to social security or for the employment of severely disabled persons are not remitted correctly, substantial additional payments may be incurred.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e9b1a65 elementor-widget elementor-widget-heading\" data-id=\"e9b1a65\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Conclusion: Compliance starts with counting<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-09ddde1 elementor-widget elementor-widget-text-editor\" data-id=\"09ddde1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>International companies, especially those from the USA or the UK, are often unaccustomed to this density of regulation.<\/p><p>In Germany, growth means not only more employees, but also <b>greater responsibility, co-determination, and monitoring obligations<\/b>.<\/p><p>Even companies with just a few employees are subject to regulations that only apply to significantly larger companies in other countries.<\/p><p>Those who are aware of these thresholds early on can implement structures in good time to avoid risks and ensure compliance.<\/p><p>For over 25 years, <b>Profion<\/b> has been supporting international employers in designing their HR structures in Germany in a legally compliant and efficient manner \u2013 ranging from the introduction of new benefits to the implementation of legislative requirements in human resources.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6dee211 elementor-author-box--avatar-yes elementor-author-box--name-yes elementor-author-box--biography-yes elementor-author-box--link-no elementor-widget elementor-widget-author-box\" data-id=\"6dee211\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"author-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-author-box\">\n\t\t\t\t\t\t\t<div  class=\"elementor-author-box__avatar\">\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/www.profion.de\/en\/wp-content\/uploads\/2025\/06\/cropped-Iris-scaled-1-300x300.png\" alt=\"Picture of Iris Zank\" loading=\"lazy\">\n\t\t\t\t<\/div>\n\t\t\t\n\t\t\t<div class=\"elementor-author-box__text\">\n\t\t\t\t\t\t\t\t\t<div >\n\t\t\t\t\t\t<h4 class=\"elementor-author-box__name\">\n\t\t\t\t\t\t\tIris Zank\t\t\t\t\t\t<\/h4>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-author-box__bio\">\n\t\t\t\t\t\tis Head of People &amp; Culture at Profion.\r\n\r\n  <a href=\"mailto:iris.zank@profion.de\">Questions or feedback to the author<\/a>\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Why the number of employees is decisive in German labor law Growth is a good indicator for businesses \u2013 more orders, more responsibility, greater success. In Germany, however, growth also equates to more legal obligations. This is because German labor law links a multitude of requirements directly to the company&#8217;s number of employees The larger [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[115],"tags":[],"post_folder":[],"class_list":["post-17592","post","type-post","status-publish","format-standard","hentry","category-blog"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Labor law thresholds in Germany - Profion GmbH<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.profion.de\/en\/blog\/labor-law-thresholds-in-germany\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Labor law thresholds in Germany - Profion GmbH\" \/>\n<meta property=\"og:description\" content=\"Why the number of employees is decisive in German labor law Growth is a good indicator for businesses \u2013 more orders, more responsibility, greater success. 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This is because German labor law links a multitude of requirements directly to the company&#8217;s number of employees The larger [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.profion.de\/en\/blog\/labor-law-thresholds-in-germany\/\" \/>\n<meta property=\"og:site_name\" content=\"Profion GmbH\" \/>\n<meta property=\"article:published_time\" content=\"2026-02-19T14:16:56+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-06-18T12:53:06+00:00\" \/>\n<meta name=\"author\" content=\"Iris Zank\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Iris Zank\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.profion.de\\\/en\\\/blog\\\/labor-law-thresholds-in-germany\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.profion.de\\\/en\\\/blog\\\/labor-law-thresholds-in-germany\\\/\"},\"author\":{\"name\":\"Iris Zank\",\"@id\":\"https:\\\/\\\/www.profion.de\\\/en\\\/#\\\/schema\\\/person\\\/a7a3090a71f3b653c76ddd28f9ae3bb7\"},\"headline\":\"Labor law thresholds in Germany\",\"datePublished\":\"2026-02-19T14:16:56+00:00\",\"dateModified\":\"2026-06-18T12:53:06+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.profion.de\\\/en\\\/blog\\\/labor-law-thresholds-in-germany\\\/\"},\"wordCount\":1805,\"publisher\":{\"@id\":\"https:\\\/\\\/www.profion.de\\\/en\\\/#organization\"},\"articleSection\":[\"Blog\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.profion.de\\\/en\\\/blog\\\/labor-law-thresholds-in-germany\\\/\",\"url\":\"https:\\\/\\\/www.profion.de\\\/en\\\/blog\\\/labor-law-thresholds-in-germany\\\/\",\"name\":\"Labor law thresholds in Germany - Profion GmbH\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.profion.de\\\/en\\\/#website\"},\"datePublished\":\"2026-02-19T14:16:56+00:00\",\"dateModified\":\"2026-06-18T12:53:06+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.profion.de\\\/en\\\/blog\\\/labor-law-thresholds-in-germany\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.profion.de\\\/en\\\/blog\\\/labor-law-thresholds-in-germany\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.profion.de\\\/en\\\/blog\\\/labor-law-thresholds-in-germany\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Startseite\",\"item\":\"https:\\\/\\\/www.profion.de\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Labor law thresholds in Germany\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.profion.de\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/www.profion.de\\\/en\\\/\",\"name\":\"Profion GmbH\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.profion.de\\\/en\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.profion.de\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.profion.de\\\/en\\\/#organization\",\"name\":\"Profion GmbH\",\"url\":\"https:\\\/\\\/www.profion.de\\\/en\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.profion.de\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.profion.de\\\/wp-content\\\/uploads\\\/2022\\\/02\\\/logo-02.jpg\",\"contentUrl\":\"https:\\\/\\\/www.profion.de\\\/wp-content\\\/uploads\\\/2022\\\/02\\\/logo-02.jpg\",\"width\":451,\"height\":203,\"caption\":\"Profion GmbH\"},\"image\":{\"@id\":\"https:\\\/\\\/www.profion.de\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.profion.de\\\/en\\\/#\\\/schema\\\/person\\\/a7a3090a71f3b653c76ddd28f9ae3bb7\",\"name\":\"Iris Zank\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.profion.de\\\/en\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/cropped-Iris-scaled-1-96x96.png\",\"url\":\"https:\\\/\\\/www.profion.de\\\/en\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/cropped-Iris-scaled-1-96x96.png\",\"contentUrl\":\"https:\\\/\\\/www.profion.de\\\/en\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/cropped-Iris-scaled-1-96x96.png\",\"caption\":\"Iris Zank\"},\"description\":\"is Head of People &amp; Culture at Profion. 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