Wages, bonus, overtime and reimbursable expenses — the cash-flow side of employment law in Germany. This page explains the legal framework. If you have unpaid salary or bonus to recover now, jump to Unpaid Salary Lawyer Germany.
The wage-claim framework
Under § 614 BGB, your wages are due on the date stated in your contract — typically the last working day of the month, or the first working day of the following month. From the day after the due date, the employer is in default (Verzug) under § 286(2) BGB, triggering default interest at 5 percentage points above the ECB base rate and other enforcement rights.
What counts as „salary” includes:
- Base salary (always).
- Commissions earned but not paid.
- Bonus claims that have crystallized (no longer truly discretionary).
- Overtime pay where contractually agreed or where the „all included” clause is invalid.
- Vacation pay for vacation already taken but unpaid.
- Contractually agreed allowances (housing, mobility, etc.).
The bonus question
„The bonus is discretionary” is the single most common employer defense. Often the defense is weaker than it looks. Even contractually labelled „discretionary” bonuses are subject to billige Ermessensausübung under § 315 BGB — the employer must exercise discretion reasonably, with documented criteria, and equal treatment vs. comparable colleagues. Where the employer cannot justify the denial against these criteria, the bonus is recoverable.
See our detailed analysis at discretionary bonus.
Overtime pay and the „all included” clause
Most German contracts contain a clause stating that „all overtime is included in the salary”. The BAG has held that such clauses are typically invalid under § 307 BGB for employees earning below the Beitragsbemessungsgrenze (currently approximately €7,550/month gross West Germany). For these employees, overtime is recoverable at the normal hourly rate.
See our detailed analysis at overtime pay.
The Ausschlussfrist trap
For the full mechanics, see our reference article: Ausschlussfrist (contractual exclusion period).
If the employer is insolvent
If the employer files for insolvency, the employees’ last 3 months of unpaid net wages before the insolvency opening are paid by the Bundesagentur für Arbeit as Insolvenzgeld under §§ 165 ff. SGB III. Application deadline: 2 months from learning of the insolvency. Wages older than the 3-month window must be filed in the insolvency proceedings; recovery rates are typically low.
Enforcement — your options
-
Day 1–7: Written reminder
Brief written reminder citing the due date and a 7-day deadline. Often catalyzes payment without further escalation.
-
Day 7–21: Formal Geltendmachung
A formal demand citing § 614 BGB and § 288 BGB (default interest) with a new 7-day deadline. Reserves the right to refuse work and to file suit.
-
Substantial arrears: Zurückbehaltungsrecht
Refuse to work until paid, with continued pay. Strict procedural conditions apply — get legal advice before exercising.
-
Zahlungsklage at the Arbeitsgericht
Court enforcement. Most cases settle at the Gütetermin within 4–8 weeks of filing. RVG fees are modest.
Working time and weekend work
Working time and overtime are governed by the Arbeitszeitgesetz (ArbZG): 8-hour daily limit (extendable to 10), 48-hour weekly average over 6 months, 11-hour rest between days, mandatory breaks. Sunday work generally prohibited with sector exceptions. See our reference articles on maximum working hours and weekend work.