Remote Working Legislation, Laws & Regulations in Germany

There is no comprehensive, standalone legislation governing remote work in Germany. Instead, there are specific provisions in various individual laws - such as the works council’s right to co-determination regarding the organization of mobile work under Section 87(1)(14) of the Works Constitution Act (BetrVG), as well as the occupational safety and health requirements for telework workstations in Section 2(7), sentence 1, of the Workplace Ordinance (ArbStättV).

There are several ways to implement remote work within a company. In practice, supplementary agreements to the employment contract and company agreements are the most common; the arrangement can also be included directly in the employment contract itself or through an applicable collective bargaining agreement. A unilateral directive from the employer is generally not sufficient (for the limited exceptions, see No. 3 below).

If the employment contract specifies a particular place of work (typically the employer’s business premises in a specific city) and does not include any provisions regarding working from home, the employer cannot unilaterally require the employee to work from home by exercising its general right to issue instructions under § 106, sentence 1, of the GewO (Trade Regulation Act). An exception may apply in truly exceptional circumstances - such as a nationwide pandemic, government-ordered closures or evacuations, or cases of force majeure (fire, water, or storm damage) that make it impossible to use the workplace.

Conversely, the revocation of a previously granted option to work from home is generally covered by the same right to issue instructions under § 106, sentence 1 of the German Trade Regulation Act (GewO). However, this is subject to the conditions that (i) the place of work is not contractually specified as the home and (ii) the instruction is reasonable. If working from home has become part of the contract - either explicitly or through long-standing practice - a unilateral reversal is not permitted; it can then only be carried out through a mutually agreed amendment to the contract or a notice of change, whereby the works council’s co-determination rights under § 87 (1) Nr. 14 of the Works Constitution Act (BetrVG) and the approval requirements for a transfer under § 99 BetrVG must also be observed.

No. There is no general legal right for employees to work remotely in Germany. Although the topic has been repeatedly discussed in political and media circles since the start of the COVID-19 pandemic, no corresponding legal entitlement has yet come into effect. A recently discussed draft bill provided for a right of initiative or discussion for employees whose work is suitable for telework. It remains unclear when such a regulation will be introduced and what its exact content will be.

In principle, the employer is obligated to provide the employee with the equipment necessary to perform their duties - regardless of the work location. Therefore, if working exclusively from home is agreed upon, the employer is generally responsible for setting up and financing the home office. An exception applies if the work-from-home arrangement is made solely at the employee’s request or in the employee’s interest (see below).

If an employee uses their own work equipment with the employer’s consent, the employee is entitled to reimbursement of those expenses that they could reasonably have deemed necessary under the circumstances (entitlement pursuant to § 670 of the German Civil Code (BGB)).

The situation is different if the employee continues to have a fully equipped workstation available at the workplace and works from home solely at their own request or in their own interest—or if they are free to choose their place of work. In these circumstances, there is no entitlement to reimbursement of additional home-related expenses.

If the employee purchases necessary work equipment on their own - for example, because it is not possible to take it from the office - they may claim reimbursement of the corresponding costs from the employer (see No. 5 above). All expenses that the employee could reasonably have considered necessary for setting up and maintaining the home office under the circumstances are eligible for reimbursement. This may also include a pro-rata reimbursement of rent if the private use of the home is significantly restricted by the home office; the same applies to increased electricity and heating costs. However, the prerequisite is always that these costs were specifically caused by working from home and would not have been incurred otherwise - a requirement that is usually difficult to prove for internet and telephone costs and also poses considerable difficulties for electricity and heating. In practice, therefore, the parties often resort to a monthly flat rate regardless of actual usage; an amount in the range of approximately EUR 50 per month is generally considered reasonable.

However, there is no entitlement to reimbursement if the employee is given the choice of working at the workplace or at home, and the employer continues to provide a suitable workplace (see No. 5).

Beyond the scenarios discussed in paragraphs 5 and 6 - in particular, a contractually agreed-upon lump sum for increased electricity and heating costs - the employer is under no general obligation to provide additional allowances or lump sums for working from home. Regardless of labour law, however, employees have the option, from a tax perspective, to claim a home office allowance on their income tax return.

Yes. The Occupational Safety and Health Act (ArbSchG) applies fully to working from home. The specific protective measures required depend on the individual case; the focus is typically on the risk assessment required under Section 5 of the ArbSchG and the training of employees as required under Section 12 of the ArbSchG. Beyond the ArbSchG, further occupational health and safety regulations must be observed depending on the circumstances. Particularly relevant is the Workplace Ordinance (ArbStättV), which since 2016 expressly covers telework workstations (Section 2 (7) ArbStättV) and requires, among other things, a workplace-specific risk assessment and ergonomic equipment. Depending on the case, the Working Hours Act (ArbZG) and the DGUV accident prevention regulations may also be relevant.

Beyond the points already discussed, employers have no special obligations specific to working from home. However, they must always comply with generally applicable regulations, such as the Working Hours Act, and take into account the specific requirements of other areas of law where the shift of work to the private sphere has practical implications, particularly regarding the protection of trade secrets and data protection.

An employee working from home enjoys the same insurance protection as an employee operating from the usual workplace (office or company premises). In practice, the parties typically agree that the equipment supplied by the employer - and any other employer property kept at the employee's home - is covered by the employer's insurance against property damage, theft and fire.

German case law holds that statutory workers’ compensation coverage applies to work done from home if the accident occurs while the employee is performing a task with the intention of serving the company. Therefore, as long as the employee is actually working for the employer from home, insurance coverage generally applies. Whether a specific incident is covered, however, depends heavily on the circumstances of the individual case; in earlier case law, even a brief private interruption was sometimes sufficient to void coverage. This restrictive approach has since been noticeably relaxed: For example, in its ruling of March 21, 2024 (B 2 U 14/21 R), the Federal Social Court ruled that even an accident while turning on the heater in a home office can be classified as a work-related accident because heating the room serves the purpose of work - the assertion that case law is generally restrictive can therefore no longer be upheld in such sweeping terms. 

No. The employer is obligated to pay the full amount of the contractually agreed gross compensation—regardless of whether the employee saves money by working from home (such as on commuting or lunch expenses). A unilateral reduction or set-off would be impermissible as a de facto amendment to the contract and could only be implemented legally by mutual agreement or through a notice of amendment.

No. The ordinary duties under the employment relationship apply in the home-office context just as they do at the workplace.

German immigration law does not currently recognize short-term remote work without a German employer or without a secondment to a German corporate group or business unit as a separate basis for residence. In practice, such a scenario is only possible for nationals of the so-called “Best Friends Countries”—Andorra, Australia, Israel, Japan, Canada, Monaco, New Zealand, the Republic of Korea, San Marino, the United Kingdom, and the United States who may be granted a corresponding residence permit depending on the terms of their employment relationship. Since the last update, significant simplifications have also been introduced for qualified remote work: The reform of the Skilled Immigration Act (FEG) came into full effect in three phases between November 2023 and June 2024, significantly easing access to the labour market for qualified third-country nationals.

The notion of remote working from abroad covers the performance of contractual duties outside the employer's premises, using portable equipment from a foreign location chosen by the employee – typically a holiday home, a hotel or a comparable setting. As a natural extension of the home-office models that gained ground after the COVID-19 pandemic, the phenomenon has become increasingly relevant. The label commonly used is “workation”, a portmanteau of “work” and “vacation” capturing the typical combination of professional activity and leisure at a holiday destination. German law contains no dedicated rules on this form of remote work.

As a general principle, employees performing their work remotely from abroad remain subject to the employment law of their “home country”. Because workation is typically temporary in nature, the habitual place of work - which determines the applicable law - does not shift. Accordingly, an employee normally engaged in Germany who works abroad for a limited period for a Germany-based employer continues, in principle, to be governed by German employment law. It is nonetheless advisable to examine whether certain provisions of the host state's local law may also apply in parallel.

The social security system applicable to German employees during temporary work abroad is determined by EU coordination rules. However, these rules do not provide a clear answer for short-term workation scenarios. The German Liaison Office for Health Insurance Abroad (DVKA) takes a pragmatic approach to this issue and continues to apply the German social security system in such cases, provided that:

1. the employer is aware of the work being performed abroad and consents to it;
2. the work performed is accepted and compensated by the employer; and
3. an application for posting within the EU (issuance of an A1 certificate) is submitted to the competent authority.

In addition, the Multilateral Framework Agreement on Cross-Border Telework (based on Article 16(1) of Regulation (EC) No. 883/2004) has been in effect since July 1, 2023. It has been signed by Germany and, in the meantime, more than twenty other countries - including Belgium, France, Italy (since January 1, 2024), Liechtenstein, Luxembourg, the Netherlands, Austria, Poland, Portugal, Sweden, Switzerland, Slovakia, Spain, and the Czech Republic - and allows employees to perform up to 49.99% of their total working hours as cross-border telework from their country of residence without changing the applicable social security law of the employer’s country. For workations outside the EU, the EEA, the United Kingdom, and Switzerland, the Framework Agreement has no effect; in such cases, any applicable bilateral social security agreement or the national regulations of the host country apply. In practice, short-term assignments abroad are typically treated as postings under Art. 12 of Regulation (EC) No. 883/2004 and require an A1 certificate; the maximum duration is 24 months.

Short workation stays abroad of a few days or weeks tend, in most cases, to be unproblematic from a tax perspective. The employee concerned generally remains subject to German income tax and is unlikely to trigger a separate liability in the host country merely by virtue of a brief presence there. Any residual exposure is typically resolved by the applicable double-taxation treaty, which assigns the taxing right to the state of residence or domicile. As a precaution, however, it is sensible to seek confirmation from an adviser in the jurisdiction in which the work is being performed.

From the employer's perspective, payroll continues without change: wage tax must continue to be withheld in Germany as usual.

For short remote-work episodes abroad, the risk of inadvertently establishing a permanent establishment of the employer in the host state - which would entail tax-filing obligations there - is normally limited, given the absence of fixed facilities such as a rented office and the short duration of the stay.

Special caution is warranted, however, in particular situations: where the host jurisdiction has no double-taxation treaty with Germany; where the employee occupies a senior or executive role (such as a managing director); where high value-added activities are performed abroad; or where the option of working remotely from abroad is used more extensively.

Citizens of the EU, the EEA, and Switzerland enjoy freedom of movement within this area and can work in any of the participating countries without a separate work permit.

The situation is different for third-country nationals planning a workation in Germany, as well as for German employees who wish to work in countries outside the EU, the EEA, or Switzerland. In both cases, the host country’s residence and work permit requirements must be carefully reviewed and complied with to avoid illegal employment.

There are several developments to watch for that are likely to shape the German mobile work landscape in the coming months: First, the EU Directive on Platform Work (Directive (EU) 2024/2831 of October 23, 2024) must be transposed into German law by December 2, 2026—with potential implications for telework regulations for platform workers. In addition, a reform of the Working Hours Act (ArbZG) is expected to take effect in the course of 2026, which, among other things, is intended to require mandatory electronic time tracking.