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The employer has an employment relationship with the employee.

What does an employer do?


The term employer is closely related to the term employee. The employer stands with the employee in an employment relationship, which is regulated in an employment contract. According to the legal regulation of the German Federal Labor Court is an employer a person who employs at least one employee.


The employer owes the employee a salary, which is linked to the required work performance. The relationship between the employer and the employee is defined by contract and describes the employment relationship between both parties. The employer owes the employee a salary which is linked to the required work performance.




The rights and obligations of employers


If there is a contract between the employer and the employee, the rights and obligations are set out in the contract. This clearly defines for both sides which agreements they have to abide by and what rights they are entitled to.


The employer’s obligations


  1. Payment of salary

    The main obligation of the employer is to pay the employee the agreed salary. This is a fixed salary, which may also include additional commissions. The amount of the salary is either determined by the contractual agreement or is based on the relevant collective agreement.


    The employer has the obligation to pay the salary at the time specified in the contract. At the same time, the employer obligation to settle possible errors or mistakes or delayed wage payments as soon as possible.


  2. Settlement of Taxes & Insurance

    The employer pays the contributions to social security and social security contributions and payroll tax.


  3. Company social benefits

    The legally obligated social benefits include, among other things, contributions to health, pension, unemployment and long-term care insurance.

  4. Protection of employees

    The employer is obliged to take care of the welfare of the employed people. This specifically involves the following four duties:


      1. Duty of employment
        This obligation describes the actual duty of employment as described in the employment contract.


      1. Duty of care
        The duty of the employer is to ensure adequate occupational safety. The guidelines are set out in the Occupational Safety and Health Law.


      1. Duty of equal treatment
        All employees of the company must be treated equally.


      1. Duty to provide information
        The employer is obliged to inform the entire team about any changes in the company tranzparently.



The rights of the employer


    1. The right of discretion
      The right of discretion allows the employer the employees to give instructions regarding the work. This can be, for example, the place of work and the time and the quality and the method of work. The employer must comply with legal requirements and individual agreements.


    1. The fulfillment of the obligation to work
      The employer has a right to comply with the work performance specified in the contract.


    1. The loyalty obligation of the employee
      Legally, it is the employer duty to ensure that the work performance is fulfilled in the interest of the company.


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