German employees can take legal action over unpaid wages. But a short deadline in an employment contract may be more dangerous than the employer’s excuses.

Imagine a software engineer working in Munich. His salary is due at the end of the month, but the money does not arrive. Payroll blames a technical problem. A week later, the company promises payment after a customer settles an invoice. The landlord still expects the rent, and the employer asks him to keep working.

He decides to wait rather than risk an argument. That decision could prove expensive. In Germany, employers must pay earned wages, yet employment contracts may require employees to assert unpaid salary claims within a few months. The immediate question is not simply whether the employer owes the money. It is how long the employee has to claim it.

1. Check when your salary was legally due

Under Section 614 of the German Civil Code, remuneration is generally payable after work has been performed. Your employment contract or an applicable collective agreement may specify a different date. For example, a contract might say September’s salary must be paid by 5 October.

Start with your employment contract, payslip and bank statement. Check the agreed payment date and what was actually received. Hourly employees should compare payslips with their own records of hours worked. A payroll mistake may be resolved quickly, but informal exchanges with HR should not consume the time available for a legal claim.

2. Look for the clause that can make your wage claim expire

An employment contract may contain an Ausschlussfrist or Verfallfrist: a deadline for asserting employment-related claims. Three months is a common example, although actual terms vary. If salary became due on 5 October and an enforceable clause required a claim within three months, the employee could have to assert it by early January. Waiting until February because HR repeatedly promised payment might be costly.

Some clauses have two stages: first demand payment from the employer, then bring proceedings within a further period if the dispute remains unresolved. This differs from the ordinary statutory limitation period, generally three years under Section 195 BGB.

Not every exclusion clause is enforceable. Wording, contract date, applicable law and the type of claim matter. Statutory minimum-wage entitlements have special protection under Section 3 of the Minimum Wage Act; that does not automatically preserve every salary component above the minimum. Find the exclusion clause before making your formal demand, and obtain prompt advice if it is unclear.

3. Demand payment in writing

If the salary is overdue, ask for payment. An initial email to payroll may correct an administrative error. If it does not, send a clear written demand identifying the unpaid month, amount, due date and a deadline for payment. Keep proof of delivery.

Example German demand:

Betreff: Aufforderung zur Zahlung ausstehenden Arbeitsentgelts

Sehr geehrte Damen und Herren,

mein Arbeitsentgelt für den Monat [Monat/Jahr] in Höhe von [Betrag] Euro brutto war gemäß meinem Arbeitsvertrag am [Datum] fällig. Bis heute habe ich die Zahlung nicht erhalten.

Ich fordere Sie auf, das ausstehende Arbeitsentgelt bis spätestens zum [Datum] ordnungsgemäß abzurechnen und auszuzahlen. Bitte bestätigen Sie mir schriftlich den Zahlungstermin.

Mit freundlichen Grüßen
[Name]

This is an ordinary payment reminder, not a guarantee that a particular exclusion clause has been satisfied. If amounts are disputed, multiple months are outstanding or a two-stage clause applies, the wording and method of delivery may need adjustment. Preserve lawful copies of relevant records outside your company email account.

4. Can you claim interest on unpaid salary?

Under Section 286 and Section 288 BGB, qualifying overdue monetary obligations may attract default interest. The usual rate for an employee wage claim is five percentage points above the applicable base interest rate—not a fixed five percent. The start date depends on when legal default arose; where the due date was fixed by the calendar, a separate reminder is not always necessary.

Do not assume you can add an automatic €40 charge to every overdue payslip. In its 25 September 2018 decision, 8 AZR 26/18, the Federal Labour Court held that special employment-litigation rules prevented recovery of that flat-rate amount in the case before it. The unpaid salary remains the central claim.

5. What if the employer ignores your demand?

You can bring a wage claim before the competent German Labour Court (Arbeitsgericht) without first resigning. A lawyer is not generally mandatory at first instance. Many courts have a Rechtsantragstelle that helps record claims in the required form, though staff cannot provide independent legal advice.

Identify the employer, unpaid periods and amounts. Supporting evidence may include the contract, payslips, time records, bank statements and written demands. If your contract contains a second-stage exclusion deadline, court action may be necessary while discussions are still ongoing.

Under Section 12a of the Labour Courts Act, parties in first-instance employment judgment proceedings generally bear their own lawyer’s fees even if they win. Court costs and legal aid are separate issues. Check trade-union representation, legal-expenses insurance or legal aid before hiring counsel.

6. Should you stop working until the salary arrives?

Not without examining the legal position. Section 273 BGB recognises a right to refuse performance in certain circumstances. Substantial wage arrears may sometimes justify withholding work, but one missed payment does not automatically make it safe to stay home. Amount, duration, proportionality and the employment relationship all matter. An unjustified refusal could lead to disciplinary action or dismissal. Seek individual employment-law advice before withholding work or resigning immediately.

7. What if the company is running out of money?

Repeated non-payment across several employees can indicate financial distress. If a qualifying insolvency event occurs, eligible workers may claim Insolvenzgeld from the Federal Employment Agency. It generally covers qualifying unpaid wages for the final three months of employment before the relevant insolvency event, subject to statutory conditions and limits.

Applications generally must be submitted within two months of the qualifying insolvency event. This is separate from any contractual exclusion deadline. A company’s announcement of cash-flow problems does not by itself establish entitlement. Keep recent payslips, your contract, termination notices and insolvency correspondence. Consult the Federal Employment Agency’s Insolvenzgeld guidance.

8. Why foreign workers face additional pressure

Return to the Munich engineer. He holds a residence permit connected to skilled employment and fears that demanding unpaid wages might cost him his job and threaten his family’s residence. The employer cannot revoke his residence permit; immigration authorities decide residence matters under the law. Nevertheless, dismissal, prolonged unemployment or insolvency can create separate immigration questions.

Protect two things separately: the right to wages already earned and the conditions attached to your residence title. Do not sign termination agreements, waivers or acknowledgments of full payment without understanding their effects. An Aufhebungsvertrag may also affect unemployment benefits.

Related reading: 10 clauses foreign workers should check before signing; residence permits after losing a job; risks of an Aufhebungsvertrag; and Germany’s 2026 Grundsicherung rules.

9. Where to get help

Faire Integration offers employment-related advice for people from non-EU countries. Trade unions may support members, while Labour Courts can explain filing procedures without acting as legal advisers. If dismissal is threatened, check separate dismissal-challenge deadlines promptly. Employment-law and immigration advice may both be necessary.

Frequently asked questions

Can I sue my employer without resigning?

Yes. Employees can pursue unpaid wages while remaining employed.

Can my employer dismiss me for demanding salary?

Section 612a BGB prohibits disadvantaging employees because they lawfully exercise their rights. Whether a dismissal is unlawful depends on the facts; short court deadlines may apply.

What if only part of my salary was paid?

You may claim the outstanding balance. Identify unpaid components and check relevant exclusion deadlines.

Does a foreign employee have the same wage rights?

Nationality alone does not extinguish a wage entitlement. The employment relationship and circumstances determine the claim.

Should I wait if the employer promises payment next month?

Do not let a promise cause you to miss an enforceable deadline. A promise does not automatically extend or suspend it.

Before another month passes

Unpaid salary creates two problems: missing money and a potentially expiring claim. Find the contractual due date and any Ausschlussfrist, calculate what is owed, preserve evidence and assert the claim in the required form before the deadline. A company may need time to correct an error; an employee need not surrender the time available to recover earned wages.

Legal review: 20 October 2026. General information, not individual legal advice. Contractual deadlines, court procedures and immigration consequences depend on the circumstances.