International Business: Working in Germany

by Deana Johnson Professional Academic Writing Consultant

In today's world of global business relations, companies and professionals are finding themselves in foreign countries, dealing with different languages, customs, and perceptions more like never before. The key to effective communication is understanding and respect of each other's culture. The base of any culture of any society depends on the attitudes and values of its people. We can see that cultural influences, attitudes and behaviour variate according to different nations and ethnicities, and are strongly followed by the communities.

Every country has their own specific culture which contains norms and traditions which are widely accepted by the people of the society. Germany is a country in Europe which is very important according to its economic power, thus every almost country wishes to do business with Germans.

Things you need to know before making a decision of Starting a business in Germany!

Since Germans are very straightforward, honest, detail oriented and hardworking people, one has to be very careful while working with them. Germans value time more than money and treat it like an extremely precious thing. They are not priced sensitive or price conscious people but they value quality and commitment of your product.

Key Cultural Assumptions:

1. Proper communication is highly appreciated in the German culture.

2. Perception of performance is very important for the German people.

3. The concept of responsibility is very high in each individual of the society and everyone assumes their own responsibility for life and work matters.

4. The concept of authority is high in Germany. There are clear lines of control and authority.

5. The concept of time is a much-embraced concept in Germany. People are punctual and expect the same from others as they are highly aware of the time value of money.

Cultural Awareness Tips for the Workplace:

1. Have a positive attitude towards other cultures. This will help you communicate more effectively and relate better to others

2. Create an environment of cultural competence. Organize cultural meetings and get in touch with people who have been successful in interacting with diverse cultures. By developing cross-cultural skills you enhance the opportunities for successful services to foreign clients

3. Your company’s human resources department must have the experience and sensitivity to work with persons from different cultural and ethnic backgrounds. Cultural awareness must be projected inside and outside your company

German Taxation Laws

The basic 2013 corporate federal rate of tax in Germany is 15%.
A company that operates in a number of cities pays business tax according to the location of its employees in the various cities.
It is compulsory to submit the financial statements by the 31st May following the tax year.
During the year, the company must make 4 quarterly advance payments on the 10th of the months of March, June, September and December.
The balance of the tax payable must be paid within 30 days of receipt of an income tax assessment.

6. A fine of 1% per month is payable in arrears in payment of the tax balance.

German labour laws

An employer cannot hire an employee on a contract of more than two years.

2. A contract of more than two years is permanent hiring/ contract.

3. If the employee on a two-year contract continues working even a day over two years it is automatically considered a permanent contract.

4. Firing an employee requires a valid reason otherwise the employer can be sued for wrongful termination.

5. The employee needs to be informed 3 weeks prior to being terminated otherwise the employee can file a suit.

6. The employment of children is forbidden according to the Young Workers Protection Act. This applies not only to children under 15 years.

7. The legal working time is 8 hours per day, except for Sunday and statutory holidays.

8. The statutory weekly working time is thus 48 hour.

9. In case of an illegal strike, the employee may also risk of extraordinary (i.e. without notice) dismissal.

Author Bio:

Deana Johnson is an educationist, entrepreneur and a blogger based in Wales. He has done his specialization in International business from a renowned university in the UK. His articles are mostly based on the international business opportunities. He has been teaching at Cheap Essay Writing Service from last 5 years. The subjects that he teaches include international business, international law and franchising.