Your Employer Hasn't Paid. Here's What to Do.

Unpaid wages in Germany need to be dealt with quickly. Exclusion clauses in your contract can wipe out valid claims within months. Here’s the step-by-step approach.

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Don’t wait. Your claim may expire.

Payment is a contractual obligation. Your employer agreed to pay you; you agreed to work. If they haven’t paid, that’s a breach, and in most cases a straightforward one to pursue.

The catch: many German employment contracts contain Ausschlussfristen, exclusion periods that cut off your right to claim unpaid wages if you don’t assert them quickly enough. Three months is typical. Some contracts add a second deadline of three months to file in court after that.

These clauses aren’t always valid (they can’t apply to minimum wage, for instance), but don’t rely on that. Act fast.

Step 1: Put it in writing

Send a written demand by email (with read receipt) or text message. If you don’t get confirmation of receipt, follow up by recorded post. Keep it simple:

I hereby request payment of outstanding salary for [month] in the amount of [sum] by [date – allow 7 days].

This documents the date you asserted the claim and gives your employer a chance to pay without a fight.

Step 2: Check your contract

Look for any mention of deadlines for asserting claims, or clauses referring to Ausschlussfristen. If there are any, the clock on those is already running from the date the payment was due.

Also check whether a Tarifvertrag (collective bargaining agreement) applies. It may set different or additional deadlines.

Step 3: Get a lawyer

If the deadline in your written demand passes without payment, get legal advice immediately. A formal lawyer’s letter often resolves the matter without litigation. If it doesn’t, a claim at the labour court (Arbeitsgericht) is the next step. In first-instance proceedings, each side pays their own legal costs, so the financial risk is manageable.

What not to do

Don’t simply stop turning up to work. You have a theoretical right to withhold performance if you haven’t been paid (Zurückbehaltungsrecht, § 273 BGB), but courts apply this narrowly. Whether it’s proportionate depends on how overdue the amount is, how much is owed, and other circumstances. Getting this wrong exposes you to dismissal for absenteeism, even when your employer is in the wrong.

FAQ

How long do I actually have? The legal limitation period is three years. But contractual exclusion clauses can cut this to three months. Check your contract immediately and assume the shorter deadline applies until you know otherwise.

My employer keeps promising to pay next month. Should I keep waiting? No. Promises don’t pause deadlines. Assert the claim in writing now, even if you expect it to be resolved informally.

Can I claim interest on late payment? Yes. Under German law, interest on overdue wages accrues automatically from the due date and can be included in a court claim.

What will it cost me? The claim value is the unpaid amount. Court costs and legal fees are calculated from that. Get in touch and I’ll give you a direct assessment.

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