Company cannot fire you based on PIP results


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Your unfair advantage in Germany

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Essentials

Rights : Terminating your job contract for poor performance is next to impossible for employers in Germany. The reasoning behind this law is that among the five top performers, there will always be one who is the best and one who is not. Thus, terminating an employee because they were poor at their job or unable to meet the employer's high standards is not a valid legal basis. Employers' goal of PIP is to wear you down so that you leave the company yourself. This was the one thing Jean (labor law lawyer) wanted all webinar participants to take away. Request webinar slides and recording here ->

Health : Germany banned lead pipes in properties. If you are a tenant, ensure that your building doesn't have lead pipes. You can ask the landlord or Hausverwaltung about the same. They are legally obligated to inform you in writing. If your landlord refuses or delays the decommissioning of lead pipes, you are eligible for a reduced rent. Read more ->

Health : Germany plans to abolish free health insurance for dependent spouses. The proposal is to charge a flat fee of 225€ to spouses who are currently insured free of charge. Free health insurance currently costs the public health system 11.4 billion euros. By charging a flat fee, the health insurance funds save 11.4 billion euros AND will generate 6 billion euros in revenue. The government also expects that more people will go to work after the reform. This will further increase the revenue of the health insurance and pension system. Read more ->

Finance : You can deduct 50% more relocation expenses from taxes if you move a second time within 5 years. You can deduct unlimited expenses if the move is work-related. The tax office allows you to deduct 20% of your relocation expenses if the move was due to personal reasons. Read more ->

Finance : Double your tax savings by reducing your depreciation period. If you own an old investment property, you can reduce your standard depreciation period of 50 years to 25 years or less. This doubles your depreciation rate (2% to 4%) per year and hence the tax savings. To apply for a shorter depreciation period, you need a report from a Gutachter. It should explain the property's reduced useful life. Read more ->

58% of the fuel cost in Germany is taxes

Germany is among the three most expensive countries in Europe for fuel. Fuel (petrol and diesel) prices in Germany is 20% above the EU average.

The main reason is taxes.

Around 58% of every liter of petrol goes straight to the state in the form of the following taxes:

  • Energy tax: A fixed 65.45 cents per liter of petrol, unchanged since 2003.
  • CO₂ levy: Around 15.7 cents per liter, and rising every year.
  • 19% VAT: Applied on top of the already-taxed price. This adds 31 cents at current fuel prices.

Without these charges, a liter of petrol would cost you around 82 cents (as of March 2026).

Moreover, these taxes amplify the oil price shock. Because when the base price rises, VAT rises with it.

What can you do to pay less at the gas station in Germany? ->

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Watchout

Deadline : You must register with the KSK by 31 March 2026 if you meet the following criteria.

  • You are a business owner in Germany and have hired freelance artists or publicists. The country of operation of a freelance artist doesn't matter.
  • You paid more than €700 in fees to the freelance artists in 2025.

Deadline : VAT Advance Return for Q1 2026 is due on 10 Apr 2026.

Deadline : The deadline to file the 2024 tax return via a tax advisor is 30 April 2026. If you haven't filed your 2024 tax return yet, contact a tax advisor here. Here you can compare the best tax software in Germany.

Phishing : PayPal phishing alert. You'll recieve an email that looks exactly like an official PayPal email. It says, "Your card was removed from your PayPal account." You will be asked to connect your card again by entering your card details. Don't click any links in the email. Open your official PayPal app instead to find out the truth. [1]

Phishing : BaFin warns about WhatsApp groups that link to the platform MORRISONBOOST. These WhatsApp groups are enticing consumers to trade financial instruments via the MORRISONBOOST platform. This platform is not supervised by BaFin. [2]

Product Recalls : IKEA SMÖJTRÄD chandelier candles. IKEA has recalled these scented candles due to a fire risk. Stop using them and return them to any IKEA for a full refund (no receipt needed). [3]

For emergencies:

  • BSI Lagezentrum: +49 228 999582 5110
  • BaFin Consumer Protection: consumer@bafin.de
  • Police: 110.

Here is a newsletter worth checking

Smart Living in Germany shares practical tips on banking, insurance, taxes, cashback, plus a weekly selection of offers and promotions that help you save money and spend smarter. We find it very helpful. You can subscribe here.

Sexual violence in the EU

Sexual violence in the EU has increased overall. It decreased by 7.3% in Germany and 52.6% in the Netherlands. However, it increased drastically in other member states. Read more ->

Need help communicating complex ideas visually? We help you turn data into your most persuasive story. Contact us to learn more.

AI Corner: Will there be fewer jobs due to AI? Probably not.

Most of us expect AI to shrink the job market. But we believe it will have the opposite effect.

Here is the observation of a 19th-century economist to support it.

In 1865, William Stanley Jevons noticed that a new, far more efficient steam engine didn't reduce the amount of coal Britain used.

It increased it.

Coal became cheap enough to power factories, railways, and steamships that nobody had previously considered building.

More efficiency created more demand, not less. This became known as Jevons' Paradox.

The same logic may apply to AI.

Yes, AI will replace certain tasks. But it also makes things possible that were previously too expensive or complex to attempt.

New projects, new products, and new companies that didn't exist before will come into existence.

The total amount of work won't shrink. It shifts, and then it grows.

Early evidence supports this.

  • According to data from TrueUp, open engineering positions globally just hit a three-year high at over 67,000.
  • AI-specific job postings have jumped 117% year-on-year.
  • Recruiter demand is approaching 2022 levels again, indicating that companies are planning to expand.

This growth is currently concentrated in tech. But if Jevons' Paradox holds, the effect will spread as AI adoption reaches other industries.

Here is evidence to support this.

Meta just released the TRIBE v2 that predicts human brain activity across vision, sound, and language. Meta released the model, codebase, paper, and an interactive demo for everyone. The goal is to help researchers push the boundaries of neuroscience and accelerate development in this field.

More such developments will open doors of accelerated innovation in other fields.

One key takeaway from this article -> Start using AI (paid version) in your daily work. The more you use it, the better you'll understand its capabilities.

Read it here ->

Latest News

  • Germany passed the Critical Infrastructure Resilience Act (KRITIS-Dachgesetz). This requires facilities that qualify as critical infrastructure to not only safeguard the facility physically but also against cyberattacks. Qualifying companies must register with the "Federal Office for Civil Protection and Disaster Assistance" by 17 July 2026. Read the qualification criteria and obligations here ->
  • The SPD suffered its worst-ever result in Baden-Württemberg (5.5%) and lost power in Rhineland-Palatinate for the first time in 35 years. 75% of Germans in a recent poll doubt the SPD leadership can turn things around. [1]
  • Cabin crew at Lufthansa and Lufthansa Cityline voted 94% in favour of strike action, according to their union. A strike isn't imminent but could affect travel plans. Learn your rights if your flight is cancelled here -> [2]
  • Chancellor Merz suggested Germany may need to keep coal-fired power plants running longer than the planned 2038 phase-out. "I am not prepared to jeopardize our energy supply simply because we set deadlines years ago," he said at an event in Frankfurt. [3]
  • On Day 29 of the US-Israeli conflict with Iran, fighting is intensifying on multiple fronts with no ceasefire in sight. Yemen's Houthis opened a new front by launching their first missile strike on Israel. Iran continues to block the Strait of Hormuz. Iran has rejected Trump's ceasefire proposal with maximalist counter-demands. Diplomatic efforts are ongoing, with Pakistan hosting multilateral talks starting Monday. [4]
  • Ukraine hit Russia's two largest Baltic oil export ports three times in five days. This knocked out 40% of Russia's oil export capacity. Russia has kicked off a surge in mechanized assaults and a massive drone-and-missile barrage of nearly 1,000 munitions in a single day. The US-Iran and Russia-Ukraine conflicts are now intertwined. Russia is reportedly preparing to supply drones to Iran, and the US is weighing redirecting weapons from Ukraine to the Middle East. [5]

Community Corner

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Learn something new about Germany every day. We cover every aspect of life in Germany: insurance, tax, real estate, schooling, scams, etc.

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