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WORKING IN GERMANY

INTERVIEW: Why racism is prompting a skilled worker exodus from eastern Germany

German career coach Chris Pyak says he and other career coaches have noticed an upward trend in skilled professionals looking to leave eastern Germany due to racism.

INTERVIEW: Why racism is prompting a skilled worker exodus from eastern Germany
A huge crowd of people with banners and placards against racism and farright politics take part in a protest against right extremism and the policy of Germany's far-right the Alternative for Germany (AfD) party, a demonstration called by the initiative 'Stand up Against Racism', on January 17, 2024 in front of the main city hall of Berlin. (Photo by CHRISTIAN MANG / AFP)

Pyak says he – and other career coaches he knows – have been getting more calls from foreigners working in Saxony and Thuringia in particular. Many are from India or African countries like Ghana, Kenya, and South Africa, and work as researchers or scientists in Dresden or in universities based in eastern Germany.

Many enjoy their jobs and experience very little racism at work or from public authorities. But what happens out on the street is a different matter.

Pyak tells The Local of clients of his who have been insulted or even spit on in eastern German streets, of people coming up to busses his clients were riding and banging their fists on the window. Many say they don’t feel safe to go out with their children after dark.

That’s led Pyak to advise clients in these situations to do one simple thing. To leave.

“You cannot live your life hiding in your own four walls.”

While many like their jobs and colleagues – or at least have no clear workplace-related reason to go, Pyak says the racism found in eastern Germany is making working there untenable for many foreigners of colour. The situation is so bad in some cases that Pyak cautions some foreigners from taking up job offers based in eastern Germany at all.

ANALYSIS: Are far-right sentiments growing in eastern Germany?

Clients who contact Pyak or other career coaches often want to stay in Germany – but would rather head to western cities or to Berlin. Some go to Switzerland, the Netherlands, or even the UK.

Pyak says the good news for people looking to leave eastern Germany is that the country’s current skilled labour shortage typically means plenty of posts are available – and that getting a new job might be the first step, but it need not be the most difficult one.

“No job is worth putting yourself in danger, putting your family in danger or getting humiliated constantly. If people don’t appreciate you, find yourself a job somewhere else. And there are enough jobs for you out there if you’re smart on how to approach the employers,” he advises.

Recruiters like Pyak are often able to help their clients get in touch with hiring managers based in more friendly areas.

Jobs expert Chris Pyak, author of “How to Win Jobs & Influence Germans” advises many foreigners based in eastern Germany to leave. Photo: Chris Pyak

In the meantime, Pyak says he expects widespread racism in eastern Germany to continue to hamper the region’s quest to recruit talent – pointing out that it’s a part of Germany currently experiencing some of the biggest labour shortages – and not just for skilled labour.

“You can’t find anyone anymore. That’s why a lot of barber shops or bars have to close for parts of the week because they simply don’t have any people to handle the work anymore,” he said, arguing that while demographic pressures are everywhere in Germany – they’re particularly pronounced in the east. “They have a much older population and then they drive those few people who are willing to work in their part of the country with their racism.”

Eastern Germany has several towns that are looking at cutting postal services due to a shortage of carriers and others no longer have local supermarkets, doctors, or pharmacies due to labour shortages.

Eastern Germany also continues to be the far-right Alternative for Germany’s (AfD) most important stronghold, with over 30 percent of people in Brandenburg, Thuringia, and Saxony saying they’re prepared to vote for the party in state elections later this year.

EXPLAINED: Could the far-right AfD ever take power in Germany?

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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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