Protecting Yourself Before Starting a Job

So you’ve landed the dream job in Germany, perhaps you’re moving from abroad, and you’re looking forward to working at a company in a role that excites you. The company seems great, your manager supportive and the team ready to make things happen. This is the best feeling: a moment we don’t want to diminish.

But it’s particularly in these times - with even companies once seeming immune to layoffs letting go of thousands of employees - that we need to protect ourselves in case things change. Below is a quick list of what you can do before starting a job to feel more secure. We don’t want to take away from the excitement of a new company and role, but with the world’s economic climate and the changing tides of investor funds creating ups and downs for startups, it's important to protect yourself.

We would advise doing all of these regardless of industry, experience level, nationality or immigration status.

Get Legal Insurance:

In Germany, you have the opportunity to purchase supplemental legal insurance (known as ‘Rechtsschutzversicherung’) through external providers. This can cost as little as 15 euros a month (with various coverage available), but is useful if/when you have a labor dispute with your employer. For example: if you are unlawfully terminated, you can file a lawsuit against them and pay little to no money for the legal fees. Legal insurance is already possessed by a large number of German working professionals, but isn’t something most foreign nationals are aware of. We advise getting it now to stay protected in case litigation is in your future. Check out a list of providers here.

A reminder that any company your work for has a legal counsel to support them in making these terms and agreements more favorable for the company - not you. It’s in your best interest to involve a lawyer or German native speaker before signing anything. Once you do sign, don’t forget to sign it in wet ink.

Clarify (and negotiate) your the probation period ,notice period and contract length:

Negotiations with regards to your contract terms generally focus around pay, vacation days, bonuses and stock options - but something that is often overlooked is the probation, notice period and contract length. For probation, the standard is 6 months - however this can be negotiated to be shorter. For example: if you held a role as a working student or intern at the company, the probation should be shorter given that you have already proven yourself to the company.

Depending on how you feel about the role, you can negotiate your notice period to be longer or shorter to your liking. Generally for senior roles, notice periods tend to be longer. Having a longer notice period will at least ensure a longer garden leave (period when you are paid as if you were working, but you are released of responsibilities) in the event of a lay off. The flip side: you will need to give them more notice if/when you choose to leave.

Your contract length is also something to be mindful of; if you intend to work for a company for a while, an unlimited contract provides greater job security and can ensure peace of mind vs a fixed-term contract.

Understand how performance reviews are done:

One of the most shocking experiences can be going into a company with certain expectations of how your work will be measured and rewarded, only to be completely wrong.

It’s imperative to understand how the company will look at your performance - not only to ensure you make it past your probation period, but also so you can have a clear picture of how you can be promoted or provided pay raises or bonuses. All too often, companies put unrealistic expectations for what is believed to be a person who is able to get a raise, which means high-performers can work to the bone and still not be rewarded. Be sure you understand how you will be measured, and potentially build that into your contract. For example: state that every six months, your performance will be evaluated for promotion or bonuses.

Another reason to understand the process of performance management is in case it is used to provide you with a warning letter. In Germany, once a person has passed their probation period, it is exceedingly difficult to dismiss them. If an employer wants to let you go for performance, the legal way to do this is to provide formal warnings to the employee - stating the reason for their warning and that they will be watched for their performance. The general rule is three warnings. Knowing how you are doing at your job will help to ensure you aren't being warned about your performance or being placed on a performance plan.

Therefore, often if a performance isn’t improving - a person might be let go right before their probation date (yet another reason to be sure your probation period is the length you want).

Ask about how they handled COVID-19 and how they are managing during the incoming recession:

How a company has handled previous times of economic constraints and uncertainty can be illuminating with regards to how secure they may be in the future. Having a layoff in the past isn’t a red flag, but if they seem to be over-hiring or frivolously spending again, it might mean that they haven’t learned their lesson.

Having these answers and knowing where you stand in case something changes will give you the peace of mind to make decisions that are best for you.