Statutory notice periods
Under § 622 BGB, the following notice periods apply:
- For employees: four weeks to the 15th or to the end of a month
- For employers: the period increases with the employee's length of service (e.g. one month after two years, up to seven months after 20 years of service).
Contractual and collective agreement rules
Notice periods can differ from the statutory ones if the employment contract or a collective agreement says so. Employers should make sure these rules are in writing and comply with the law.
What do employers need to watch for in payroll?
- Calculating the remaining salary Employers must make sure pay up to the last working day is calculated correctly. The actual working time including overtime should be taken into account.
- Remaining leave and overtime Remaining leave or overtime must be paid out if it can no longer be taken. Precise records of days of leave and overtime worked are important.
- Payroll during garden leave If the employee is released from work during the notice period (Freistellung), the right to pay remains. The release (paid or unpaid) should be shown correctly in payroll.
- One-off payments and bonuses Payments such as Christmas bonuses, holiday pay or bonuses can be affected by the termination. Whether they must be paid pro rata depends on the contract.
- Social security contributions and taxes The final payroll must also include the correct deductions for taxes and social security contributions. Employers must make sure all amounts are reported and paid properly.
Common payroll mistakes
- Calculating the notice period incorrectly: Applying statutory or contractual notice periods incorrectly can lead to legal disputes.
- Forgetting severance pay: If severance pay has been agreed, it must be included in payroll.
- Unclear rules on one-off payments: Clarify in advance whether one-off payments must be paid pro rata to avoid misunderstandings.
Conclusion
Observing notice periods and processing payroll correctly when someone leaves is a legal duty. It is also a sign of professionalism and fairness. With a clear structure, careful documentation and external support where needed, employers can make sure this process runs smoothly. This way you avoid legal risks and leave departing employees with a positive impression.
