Many German employers pay a Christmas bonus (Weihnachtsgeld), often in November. If you are leaving the company, the question is whether you still get it, get part of it or even have to pay it back. There is no single answer, but there is a clear test: what is the bonus meant to reward?
German courts distinguish between bonuses that pay for work you have done and bonuses that reward your loyalty. The first kind is yours, even if you leave. The second kind can be tied to staying.
Where Does Your Right Come From?
Look for the bonus in these places:
- Employment contract. A clause such as "a Christmas bonus of one month's salary is paid with the November salary".
- Collective agreement (Tarifvertrag). Many sectors have binding rules on annual special payments.
- Works agreement (Betriebsvereinbarung), agreed between the employer and the works council.
- Company practice (betriebliche Übung). If the employer has paid the bonus three years in a row without a clear reservation, you can usually claim it in future years too.
Many contracts say the bonus is "voluntary and can be revoked". In standard contracts, this combination is often invalid because it is contradictory. A voluntariness clause is also invalid if the contract at the same time promises the bonus or its amount, for example "one month's salary", or if it covers all future payments in general terms. Only a clear clause stating that each payment creates no future right can be effective.
Once a company practice has arisen, your employer cannot remove it simply by paying under reservation for the next three years.
What Is the Bonus For?
| Type | Typical wording | If you leave during the year |
|---|---|---|
| Pay for work done | "13th month's salary", paid in instalments or pro rata | You receive the share for the months you worked |
| Reward for loyalty | "for loyalty to the company", tied to a cut-off date | You may lose it if you are not employed on the cut-off date |
| Mixed | Rewards both work and loyalty | Treated like pay for work: you keep the share for the months worked |
If the contract does not say what the bonus is for, look at the details. A bonus that rises with your salary and is reduced for periods without pay points to pay for work. A fixed amount for everyone with a cut-off date points to loyalty.
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Cut-Off Dates and "Not Under Notice" Clauses
Many clauses say the bonus is only paid to employees who are still employed on 1 December, or whose employment is not under notice on that date.
- For pay for work done or a mixed bonus, such clauses in standard contracts are invalid. You keep the share you have earned, even if you leave in September.
- For a pure loyalty bonus, they can be valid. If you are under notice on the cut-off date, you may receive nothing, possibly even if your employer dismissed you for business reasons.
- Collective agreements have more freedom. A collective agreement can tie even a mixed bonus to a cut-off date. If your employment is covered by one, its rules decide.
The wording in your contract decides. If you are planning to resign, check the bonus clause first. Giving notice a few days after the payment date can make a big difference.
Repayment Clauses
Some contracts require you to repay the bonus if you leave shortly after receiving it. Courts allow this only within limits:
- Bonus up to €100: no repayment.
- Bonus above €100 but less than one month's salary: you may be bound until 31 March of the following year.
- Bonus of one month's salary or more: you may be bound beyond 31 March, until the next possible termination date after that.
Clauses that bind you for longer, or that require repayment of a bonus that also pays for work already done, are invalid.
Illness, Parental Leave and Garden Leave
- Illness. If agreed, the bonus can be reduced for sick days, by at most a quarter of your average daily pay per day of illness.
- Maternity protection. The bonus may not be reduced for maternity protection periods. This would be discrimination.
- Parental leave. A reduction for months without pay is usually allowed if agreed.
- Garden leave. While you are released from work with pay, your employment continues. The bonus is generally due as normal.
Leaving With a Termination Agreement
A termination agreement or settlement often contains a general clause that all claims are settled. If the bonus is not mentioned, you may lose it. Always ask for the bonus, a pro-rata share or its value to be included explicitly.
Deadlines
Many contracts contain exclusion periods (Ausschlussfristen). They require you to claim unpaid amounts within a short period, often three months after they become due. In standard contracts concluded since October 2016, an email is enough. If you miss this, the claim expires, regardless of whether it was justified. Otherwise, the general limitation period of three years applies, starting at the end of the year in which the claim arose.
Lost your Christmas bonus because of a dismissal? Have the clause checked before the deadline runs out.
Get Your Free Case Review →Points for Expats
- No legal 13th salary. In some countries, a 13th or 14th salary is required by law. In Germany, it only exists if agreed. Check this when you compare job offers.
- Gross salary comparisons. German job offers often quote an annual salary that already includes the bonus. Ask whether the bonus is part of the stated figure.
- Tax. The bonus is taxed as a one-off payment, which can make the deduction in that month look high. The final tax is settled in your tax return.
Frequently Asked Questions
I was dismissed in October. Do I still get the Christmas bonus?
If it is pay for work done, you get at least the share for the months worked. If it is a pure loyalty bonus with a cut-off date, you may get nothing. The wording of your contract decides.
My employer says the bonus is voluntary. Can it just stop paying?
Only with a clear voluntariness clause that does not promise the bonus elsewhere. A clause that calls the bonus both voluntary and revocable is often invalid, and your right may then be secure.
I received the bonus and resigned in January. Do I have to pay it back?
Only if there is a valid repayment clause. For a bonus of less than one month's salary, you can usually leave after 31 March without repaying it.
Does a holiday bonus follow the same rules?
Largely yes. Holiday bonuses (Urlaubsgeld) are also judged by what they are meant to reward.
