Discerning the Second Income: Essential Insights to Consider

In Germany, having a secondary job alongside a primary one is not uncommon, with figures from the Federal Statistical Office showing that 4.5% of the employed population held at least one additional job in 2023. However, managing these dual roles comes with legal considerations and requirements.

Informing Main Employers

While the right to practice a profession is fundamental, there are circumstances where this right may be limited by an employer's interests. Labor law specialist Jakob T. Lange advises that workers should inform their main employers of any secondary activities. This is mandatory when a side job could potentially affect the employer's interests.

Even in the absence of a contractual clause, such disclosure is important to prevent misunderstandings and potential conflicts. Lange suggests providing details about the activity, the company, working hours, and any overlaps with the primary job.

Employer's Authority to Refuse

An employer may not generally prohibit a secondary job, but they must assess the specific circumstances and justify their decision. Primary prohibitions can only be enforced when the side job conflicts with the employer's business interests, such as in cases of competing activities or damaging the employer's reputation.

Working Hours and Rest Periods

Labor laws apply equally to secondary jobs, with considerations regarding working hours, rest periods, and overtime. The total working time from both primary and secondary jobs may not exceed 8 hours per day and 48 hours per week, on average. The side job should not interfere with the employee's rest periods, which are legally required to be uninterrupted for 11 hours after work. During paid vacation, employees are prohibited from engaging in any secondary activities that could undermine recovery.

Secondary activities are subject to tax and social security contributions. Lower deductions are available for mini-jobs with monthly earnings not exceeding €556. These jobs are exempt from social security contributions, with the employer paying flat-rate contributions. When earnings surpass €556, both tax and social security contributions become applicable.

Tax advantages are only available for mini-jobs, with a very low tax rate of 2%. When the employer also pays the tax flat-rate, the net salary equals the gross salary. In all other cases, the second job is taxed under tax class VI, which has the highest deductions.

Effective Time Management

Effective time management between primary and secondary jobs depends on personal circumstances, working hours, and private commitments. Common strategies include working on weekends, doing a second job on the fifth day for those with a four-day workweek, or scheduling evening side jobs after the primary workday. Part-time employees have more flexibility due to their shorter working hours and can often adhere more easily to legal working and rest times.

In navigating the complexities of managing a second job in Germany, it is essential to maintain transparency with employers, adhere to working hour regulations, and accurately manage tax obligations. Consulting relevant labor laws and seeking professional advice can prove beneficial in managing potential conflicts and maintaining a healthy work-life balance.

[1] BAMF (2023). Second jobs for foreigners in Germany. Retrieved from https://www.bamf.de/EN/Themen/Arbeit-u-Ausgeburgerung/Ausgeburgerung/arbeits-und-bescheinigungsverweigerung/arbeitsverweigerung/arbeitsverweigerung-node.html[2] Arbeitnehmer- und Tarifverbund Hessen (2023). Overview of German Minimum Wage Regulations. Retrieved from https://www.atarif-hessen.de/go/minijob-1200[3] German Federal Employment Agency (2023). Employment contracts. Retrieved from https://www.arbeitsagentur.de/leistungen/TarifInfoService/syntax-richtige-berufsbezeichnung.html?p_breadcrumb_1=TarifInfoService&p_breadcrumb_2=Themen&p_breadcrumb_3=%2FSyntax%2FRichtige%20berufsbezeichnung&p_breadcrumb_4=%2FQuelle[5] German Federal Ministry of Labour and Social Affairs (2023). Working hours, overtime, and right to refuse overtime. Retrieved from https://www.arbeitsagentur.de/firmen-verwalter/arbeitsbedingungen-arbeitsschutz/arbeitszeit-uebertarife-untarifliche-arbeitsvertraege-arbeitnehmer/arbeitszeiten/arbeitszeitzonen/arbeitszeit-uebertarife-untarifliche-arbeitsvertaege-arbeitnehmer/arbeitszeiten/links/link4108.html?p_p_id=company-info_WAR_arbeitszeiten&p_p_lifecycle=1&p_p_state=normal&p_p_mode=view&p_p_redirect=https%3A%2F%2Fwww.arbeitsagentur.de%2Ffirmen-verwalter%2Farbeitsbedingungen-arbeitsschutz%2Farbeitszeit-uebertarife-untarifliche-arbeitsvertaege-arbeitnehmer-arbeitsverweigerung&p_p_forceLogin=1&&=1671015931023

In light of a worker's multiple roles, the practice of science as a secondary job may require disclosure to the main employer, especially if it could potentially impact the employer's corporate interests, financial performance, or reputation in the health-and-wellness and workplace-wellness sectors.
While taking on personal-finance or finance-related side jobs, it is crucial to understand that employers may have the authority to refuse based on the specific circumstances, such as competing activities or conflicts with their business interests. However, robust communication can help minimize this risk, with the least restrictive rules applying to part-time employees.
When engaging in personal-finance or financial activities as a secondary job, labor laws concerning working hours and rest periods still apply, ensuring a balance between juggling multiple jobs and maintaining overall health and wellbeing, which is vital for optimal performance in the workplace and daily living.