This document compares labor laws in the US and Germany, specifically regarding regulations around employee work hours. In the US, federal and state laws govern minimum wage, overtime pay, and work hours. The standard workweek is 40 hours, with overtime required for hours worked over 40. Germany regulates work hours at the national level, with a standard 48-hour workweek plus Saturdays and allowances for extended hours in some situations. Germany also mandates paid breaks of 30-45 minutes depending on hours worked. This comparison of US and German labor laws around work hours would help a mid-sized firm considering expanding into Germany understand the regulatory differences.
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US-Germany Labour Law Comparison
1. University of the People
Bus 5511: Management Information Systems and Technology
September 22, 2021
2. This article compares labour legislation in the United States with the European
Union, with a focus on Germany. The presentation will focus on the regulations
controlling the employee's working hours in particular. This equation will serve as a
comparison and contrast for a medium-sized firm relocating to Germany. Global
firms' HR policies addressing working hours will be developed, and the policy's
execution will be evaluated. This article will provide a comparative examination of
labour legislation in the United States and the European Union, with a focus on
Germany. The study will specifically look at the law that governs employee work
hours. This comparison will be used for contrast and comparison from the standpoint
of a mid-sized firm looking to grow into Germany. The working hours recruiting policy
of international firms will be developed, and the execution of this policy will be
examined.
Labour law is defined by both federal and state laws in the United States, because of
business law, the U.S. The subject of this comparative examination will be federal
legislation that does not know the country of origin. Minimum wages, working hours,
overtime pay, and child labour rules are all defined by the United States Department
of Labor (U.S. Department of Labor, n. d.). Working hours requirements may be
established under the Fair Labor Standards Act (FSLA), in which working more than
40 hours, 168 hours (on weekdays) will be considered overtime (U.S. Department of
Labor's Scales and Hour Division, 2011).
This legislation also recognizes that there may be significant and unexpected
changes during the transition period, in the case of an emergency, or as one of the
few resources necessary to work outside of the typical workweek, and there is
3. presently no standard for these situations (Division of Wages and Working Hours in
the U.S. Department of Labor, 2011). The people that work during these hours have
different occupations, and I believe the firm in issue is one of them. This legislation
also recognizes that there may be significant and unexpected changes during the
transition period, in the case of an emergency, or as one of the few resources
necessary to work outside of the typical workweek, and there is presently no
standard for these situations (Division of Wages and Working Hours in the U.S.
Department of Labor, 2011). The people that work during these hours have different
occupations, and I believe the firm in issue is one of them. There are exceptions to
this overtime obligation, such as the rights of employees of firms that encourage
working extra. Employees in the medical and first-aid fields are one illustration of
this.
Employment law in Germany differs from that in the United States of America.
Germany regulates labour regulations at the national level, unlike in the United
States, each state has its own labour law (Bosch, 2009). In Germany, a week
consists of a 48-hour working week plus Saturdays and an additional 8-hour working
day (Bosch, 2009). Under German labour law, the standard 8-hour working day can
be extended to 10 hours per day under specific situations; however, such extensions
must be granted by the government (Bosch, 2009). Overtime pay is not legislated by
the government, but rather through collective bargaining agreements between
unions and businesses. As a result, many data like overtime rates, work schedules,
and hours are linked to industry-specific statistics anchored in labor union-employer
negotiating agreements. The significant contrast in working-hour rules between the
United States and Germany, as well as Germany's attitude toward its branch
4. employees. In Germany, paid labour using brakes is necessary, based on the
number of hours worked, 30 minutes approximately 6-9 hours each day, no more
than 45 minutes per day, more than 9 hours of work; brakes cannot be separated.
The German handling of employee breaks is one significant distinction between US
and German working hour rules. Germany mandates paid work breaks based on the
number of hours worked, 30 minutes every 6-9-hour workday and 45 minutes for
more than 9 hours of work; brakes can be divided up, but Germany needs 15-minute
intervals between brakes (Sellhast & Schön, n.d.).
Following and doing due diligence on the country in which you intend to create your
business is a standard practice in international growth and the formation of a
corporation or legal entity in a foreign country. Furthermore, it is important to
consider the legal requirements of labour law and regulations and monitor the
business's actions, as well as when the firm begins operating in Germany, which is
required in order to comprehend and comply with German labour law. Another key
factor in the success of HR implementation is the formation of an employer entity
outside of the country. There are no minimum percentage requirements for foreign
firms' local shareholdings in Germany.
To promote clear communication and to build a clear plan for employing local
nationals in the future, the firm may consider creating a local employment office
(Nagele-Piazza, 2017). More information about the nature of the expansion is
required in order to properly assess the demands at the new site and design a
particular plan of action to monitor working hours and effectively implement them
throughout the transition. For additional information on the nature of the extension,
5. you should better define the requirement for a new object and create a particular
action plan so that the monitoring works hours and is more efficient throughout the
transition.
6. References:
Bosch, G. (2009, January). Working time and working time policy in Germany.
Working time and working time policy in Germany.
https://www.jil.go.jp/english/reports/documents/jilpt-reports/no.7_bosch.pdf//Internatio
nal
Trade Aministration. (2018). Germany - establishing an Office.
https://www.export.gov/article?id=Germany-Establishing-an-Office//
Luo, Y. (2000). Dynamic capabilities in international expansion. Journal of World
Business,
https://www.sciencedirect.com/science/article/abs/pii/S1090951600000432-text-The-
three -essential-ingredients-of, international-expansion-and--global-operations/
Rugman, A. M., & Verbeke, A. (2001, March). Subsidiary-specific advantages in
multinational ‐enterprises. Strategic Management Journal, 22(3), 237-250. Retrieved
from https://www.jstor.org/stable/3094460?seq=1
Sellhast, U., & Schön, C. (n.d.). Terms of employment. GTAI Germany Trade &
Invest. Retrieved from
https://www.gtai.de/GTAI/Navigation/EN/Invest/Investment-guide/Employees-and-so
cial-security/terms-of-employment.html#6782
7. U.S. Department of Labor. (n.d.). Work Hours. Retrieved from
https://www.dol.gov/general/topic/workhoursU.S. Department of Labor Wage and
Hour Division. (2011, May). The fair labor standards act of 1938, as amended.
Retrieved from https://www.dol.gov/whd/regs/statutes/FairLaborStandAct.pd