Updated November 2026
To hire employees in Germany as a startup, you employ them through your own German company (usually a GmbH) or an employer of record (EOR), and give each hire a written contract that sets out the essential terms. Plan the timeline from the candidate's notice period, because most good candidates are employed and their current contract, not your offer, decides when they can start.
Plan backwards from the notice period
Founders coming from the US tend to treat the offer as the finish line and pencil in a start date a couple of weeks later. In Germany that almost never works. Notice periods for experienced employees are commonly much longer than in the US, and contracts often tie them to the end of a month or a quarter.
That second detail catches people out. A candidate who resigns just after a quarter end can wait almost a full extra quarter, so a week's delay in your process can cost months on the start date.
Shortlist, interviews
Signed written contract
Candidate resigns, serves notice to the end of the quarter
First working day of the next quarter
Set the target start date first, ask shortlisted candidates about their notice terms early, and count backwards. Our hiring timeline estimator helps you see how far ahead the search needs to begin.
German candidates rarely resign until they hold a signed written contract, so have it ready the day you make the offer. A long notice period also gives their employer time to counter-offer, so stay in touch until day one.
Own entity, EOR or contractor in Germany
The point founders miss is that German EOR arrangements generally fall under the rules on temporary agency work, which limit how long an assignment can last. Ask any provider how they meet those rules. If Berlin will become a real team, plan your GmbH early.
The contract, the first weeks and the Betriebsrat
German law requires employers to give employees the essential terms of employment in writing, including pay, working hours, holiday, the notice rules and the place of work. Contracts commonly start with a probation period (Probezeit) with shorter notice on both sides.
Once the team grows, employees have the right to elect a works council (Betriebsrat). The employees start it, not the company, and a works council has real co-determination rights on matters such as working time and tools that can monitor performance.
Language deserves a decision too. Many Berlin tech teams work entirely in English, which widens your pool. Contracts can be in English, but if a dispute ever reaches a labour court the proceedings run in German, so many employers use bilingual contracts.
Rules change and differ by situation, so confirm the details with a German employment lawyer, a tax adviser or your EOR provider before you sign anything.
Worked example: a US Series A startup hires its first two engineers in Berlin
Illustrative only. A US SaaS company with no European presence wants two senior backend engineers in Berlin. The CTO, Mark, expected both to start within a month of the offers.
| Step | What happened |
|---|---|
| Employment route | No German entity, so an EOR provider, chosen after asking how it handles the temporary agency work rules. A GmbH went on the plan for next year. |
| Language | English as the working language, stated in the job description. |
| Notice check | Asked at first interview. One finalist had notice running to a quarter end, the other to a month end. |
| Contracts | Bilingual written contracts were ready before the offers, so both resigned the day after accepting. |
| Start dates | The month-end hire started first. The quarter-end hire started with the next quarter, and Mark kept in touch during the wait. |
Both start dates were known from the first conversation, not discovered after the offer, so the roadmap was planned around them. For local market context, see our Berlin startup recruiting guide.
Where Funded.club fits
We are a fixed-fee recruiting partner for funded startups and fast-growing teams across North America, Europe and APAC, with a fully remote team of recruiters. Since 2019 we've helped 500+ startups from Seed to Series D. We run the search for your German hires, and your own entity or EOR handles the employment.
One dedicated recruiter runs each search end to end, with first screened candidates within 7 days and 33 days on average from kick-off to hire. We ask about notice terms at screening, so start dates are realistic from the shortlist onwards.
We agree a low fixed fee per hire upfront, averaging 6 to 9% of salary against the 20 to 25% typical of contingency recruiters. For two illustrative engineers on $120,000 each, that is $11,500 per hire, $23,000 in total. Part is an advance at the start, the balance on offer acceptance. If we don't deliver a shortlist of at least 3 qualified candidates within 30 days, you can claim the advance back in full. See our pricing page.
Frequently asked questions
Can a foreign startup hire employees in Germany without a German company?
Yes, through an employer of record (EOR) that employs the person for you. In Germany this is generally treated as regulated temporary agency work, so startups often use it as a bridge before setting up a GmbH.
Why do German hires take so long to start?
Experienced candidates are usually employed, and German notice periods are commonly long and often tied to a month or quarter end. The start date follows the candidate's current contract, so ask about notice terms at the first interview.
Do employment contracts in Germany have to be in German?
Not necessarily, but labour court proceedings run in German, so bilingual contracts are common. The essential terms must be given to the employee in writing.
When does a startup in Germany need a works council?
Never by the company alone. Employees can elect a works council (Betriebsrat) once the business reaches a certain size, and it then has co-determination rights. Check the current rules with a German employment lawyer.
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