SHARE
COPY LINK
For members

WORKING IN GERMANY

Four steps to take straight away after losing your job in Germany

Losing a job can be a nightmare situation for foreigners in Germany - but following these simple steps will get you back on your feet in no time.

The entrance to the Jobcenter in Düsseldorf,
The entrance to the Jobcenter in Düsseldorf, North Rhine-Westphalia. Photo: picture alliance/dpa | Oliver Berg

In times of economic downturn, layoffs are far from unusual – but that doesn’t make it any more difficult for the people who find themselves suddenly left without work.

For foreigners in Germany, the situation is even more frightening. You may wonder whether your residence status is in jeopardy, how hard it will be to find another position, and whether you can support yourself while you look for another job.

Though it may be hard to think clearly at a time like this, following these four simple steps will set you in good stead to move forward – and hopefully, it won’t be long before another dream opportunity comes your way. 

1. Negotiate your terms 

Before signing or agreeing to anything, it’s crucial that you’re familiar with your rights and understand how much notice your employer has to give you and what kind of settlement you may be owed.

Generally, the rule of thumb is that you get half a month of severance for every year you worked at the company. That said, higher settlements can be negotiated in return for signing a termination agreement (Aufhebungsvertrag), so you may want to seek legal advice before settling. 

Even during a probationary period, your employer will also have to give you a certain amount of notice before your last working day. During the interim, you can either work for the company or be put on what is known as gardening leave in English, where you stay home but are paid as if you were working.

This can all be negotiated as part of a termination agreement, so you should think carefully about what works best for you and consider speaking to your labour council (Betriebsrat) or a legal specialist before making any firm decisions. You should also be aware that you have no obligation to sign any agreement and can legally dispute the layoff if you want to. 

READ ALSO: Can I get unemployment benefits in Germany if I quit my job?

2. Get all the necessary documents from your employer

Once the terms of the layoff are final, ensure that your employer gives you all the necessary documents you need to navigate the next phase of German bureaucracy.

The main two to think about first are the confirmation of work (Arbeitsbescheinung) and the confirmation of your holiday entitlement (Urlaubsbescheinigung).

The first can be sent to the Agentur für Arbeit (jobcentre) as proof of your last job and recent layoff, while the second will help your next employer calculate your vacation days for the rest of the year.

An Arbeitszeugnis, or German letter of reference

An Arbeitszeugnis, or German letter of reference. Photo: picture alliance/dpa/dpa-tmn | Zacharie Scheurer

On top of these documents, you’ll want to ask your employer for a letter of reference (Arbeitszeugnis), which is useful for finding a new job in Germany.

You should also keep hold of your last payslip and statement of earnings (Lohnsteuerabrechnung), which are helpful for tax purposes and may also be requested by the Agentur für Arbeit.

Speaking of which… 

3. Register as unemployed with the Agentur für Arbeit

As soon as you know that you are soon to be unemployed, you should register as a jobseeker with the Agentur für Arbeit. To get full unemployment benefits, you usually have to do this within three days of receiving your termination notice or at least three months before leaving.

Depending on what type of residence permit you’re on, you may or may not be entitled to long-term unemployment benefits (ALG II), but most employees are able to get unemployment insurance (ALG I), which covers a proportion of your former salary while you look for a new role.

It’s important to be a little bit careful here, as claiming long-term unemployment benefits (ALG II) can affect any future citizenship applications. Any severance pay you agree to can also result in you losing some months of unemployment benefits, so these are all factors you will have to consider while deciding on the best way forward. 

READ ALSO: What happens to your work permit if you lose your job in Germany?

4. Inform the immigration office 

If you’re on a residence permit that is linked to your job in some way, like a Blue Card or work visa, you’ll need to inform the immigration office about your change in circumstances as soon as possible.

This should be done in writing, and in German, within two weeks of receiving your termination notice.

You should include all relevant personal information, such as date of birth, residence permit type, and nationality, as well as the date of your final day at work. As proof of the layoff, you should also enclose a copy of your termination agreement or a letter from your employer. 

People enter the immigration office

For foreigners who move to Germany and settle in Berlin, a visit to the Berliner Landesamt für Einwanderung (LEA) is ultimately unavoidable. Photo: picture alliance/dpa | Britta Pedersen

In most cases, the immigration office will give you between 3 and 12 months to look for a new job. If they give you a shorter period, be aware that you may be able to negotiate an extension later on if you are struggling to find work through no fault of your own.

Above all, stay positive. Though it may feel like one door has closed, another one is sure to open. This being Germany, you may just have to wade through a sea of paperwork to get there.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

STARTUPS

What startups should know about Germany’s new ‘digital hub’ cities

A number of German cities have been rebranded as 'digital hubs' aimed at startups and business who specialise in everything from fintech to e-mobility. But where are the digital hubs - and what can they offer Germany's entrepreneurs?

What startups should know about Germany's new 'digital hub' cities

For decades now, one region has been synonymous with the world’s biggest and most innovative tech companies: Silicon Valley.

From major computing brands like Apple and Microsoft to digital giants like Netflix and eBay, this part of California has become the go-to region for tech entrepreneurs and talent, with tech coming to represent the region’s entire cultural identity.

Though it may seem far-fetched to imagine a German Silicon Valley, the government has been working on a similar concept spread out across the country.

Under the moniker of ‘digital hubs’, several cities are becoming bustling centres for start-ups and larger business all focused on an area of digitalisation, from smart infrastructure to cybersecurity.

What exactly is a ‘digital hub’?

According to the Economics Ministry (BMWK), the idea is to create networks of expertise where established businesses and larger corporations can pool their knowledge with startups and young entrepreneurs. 

Startup founders can seek out mentors, attend pitching events and connect with potential investors, post job offers and market their services on dedicated startup databases that are affiliated with the hubs.

READ ALSO: The legal steps for starting a business in Germany

There are also a range of programmes, from incubators to accelerators, offered at hubs throughout the country.

To ensure the hubs remain interconnected, a joint brand known as de:hub and a joint ‘hub agency’ run by creative agency RCKT have also been created.

“Although each city focuses on a particular industry, the idea is that clusters will emerge where other industries can bring in their expertise as well,” the BMWK explains.

Startups who are part of the initiative can also get hold of a Startup Card, which provides access to all of the co-working spaces across Germany’s digital hubs, as well as networking events and industry experts. 

For those who are not as far along in their business, the Grunderplattform – or Founder Platform – run by investment bank KFW can help entrepreneurs bring an idea to fruition, from writing a business plan to accessing free consultations. 

Former business senator Ramona Pop

Former Berlin business senator Ramona Pop (Greens) speaks at a press conference at The Factory Berlin following the founding of a new digital hub. Photo: picture alliance / Soeren Stache/dpa | Soeren Stache

Where are Germany’s digital hubs – and what do they do?

From the previous 12 hubs in major cities, the government has expanded its digital hub network to include 10 new locations – bringing the total up to 22. 

This latest step was taken at Germany’s Startup Summit in mid-September, where the government also secured €12 billion of investment for young businesses looking to grow.

Here’s an overview of the current hubs across the country and their respective industry expertise: 

Berlin: Fintech / Deeptech

Bremen: Smart manufacturing

Cologne: Insurtech

Darmstadt: Cybersecurity

Dortmund: Logistics

Dresden: Smart systems

Düsseldorf: GreenTech

Frankfurt (Main): Fintech

Halle (Saale): Life Science & BioEconomy 

Hamburg: Logistics 

Jena: Photonics and Digital Experience Platforms

Karlsruhe: Artificial Intelligence 

Leipzig: Smart Infrastructure

Lübeck: Renewable Energy

Mannheim / Ludwigshafen: Health & Chemistry

Munich: Insurtech / Mobility / Security & Defence 

Nuremberg / Erlangen: Health

Osnabrück / Hanover: Agrifood

Potsdam: Mediatech

Saarbrücken: Artificial Intelligence

Stuttgart: Future industries

Rostock: GreenTech

At the moment, only a handful of the hubs – Berlin, Dortmund, Frankfurt, Karlsruhe, Köln, Leipzig, Munich and Nuremberg – offer access to co-working spaces. However, de:hub says more will be added in the near future.

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

How can startups get involved in a hub?

According to BMWK, the best way to get started is to get in touch with one of the digital hubs through de:hub’s contact page. 

Startups have the choice of picking a hub based on its location or based on their particular industry expertise, and can either make contact with a specific hub or fill in the general contact form on the website.

Once a startup is matched with a digital hub, there are plenty of opportunities to get involved, from setting up meetings with mentors or other industry experts to joining network events, programmes and pitching nights.

SHOW COMMENTS