What F&B and Nail/Spa Business Owners Need to Know About Regulations in Germany

Doing business in Germany is always a journey full of challenges but also rich with opportunities, especially for the Vietnamese community in the restaurant, nail, and spa sectors. However, the 2024–2025 period marks a phase where the German authorities are tightening regulations to ensure that business owners strictly comply with the law. This demands immediate strategic adjustments from shop owners.

The new regulations open wider doors for hiring employees but simultaneously tighten discipline regarding labor costs, taxation, and hygiene standards. If you fail to understand and fully comply, your profits can quickly evaporate due to massive fines.

This article dives into the three most important legal pillars: Human Resources & Labor, Operations & Finance, and the common mistakes Vietnamese F&B business owners often make.

PART 1: NEW REGULATIONS ON LABOR AND HUMAN RESOURCES

The legal framework for human resources in Germany is shifting toward stronger protection of employee rights and greater flexibility in international recruitment.

1.1. The Cost Burden: Minimum Wage (Mindestlohn) Increases

This is the most direct and significant change. The statutory minimum wage (gesetzlicher Mindestlohn) has been given a clear roadmap by the Minimum Wage Commission:

  • From 01/01/2024: Increased to €12.41 per hour
  • From 01/01/2025: Will further increase to €12.82 per hour

Shop owners must immediately review all employment contracts to ensure salaries meet the legal threshold. Paying below minimum wage is a severe legal violation.

Note: If your industry or region applies a collective bargaining agreement (Tariflohn) with a higher wage level, you must pay the higher amount.

1.2. New Recruitment Pathways: Skilled Immigration Law and the Opportunity Card

The New Skilled Immigration Act (Fachkräfteeinwanderungsgesetz), effective from March 2024, offers significant opportunities to hire Vietnamese chefs and service workers with experience — even if their qualifications have not yet been fully recognized in Germany.

Skilled workers (no prior recognition of qualifications required):
Employees may enter Germany to work in professional roles based on many years of practical experience (supported by documentation, references, and job descriptions) rather than solely on formal certificates. This helps restaurants quickly solve the shortage of skilled workers (such as experienced Vietnamese chefs).

Opportunity Card (Chancenkarte) 2025:
This entirely new visa category allows foreign workers to come to Germany for up to one year to search for employment, even without having a job offer beforehand.
Eligibility requires:

  • At least two years of vocational training or a recognized university degree from the home country
  • Low language requirements (A1 German or B2 English)
RISK WARNING ABOUT THE OPPORTUNITY CARD:

Employees holding a Chancenkarte are only permitted part-time work, up to 20 hours per week.
If you require or allow them to work full-time, this constitutes a serious violation of immigration law (Verstoß gegen das Aufenthaltsgesetz).
Consequences include:

  • Heavy fines for the business owner
  • Risk of the employee losing their residence status

Vietnamese F&B shop owners must ABSOLUTELY avoid this mistake.

PART 2: DOCUMENTATION, FINANCE & COMMON OPERATIONAL MISTAKES

Compliance with financial, HR, and hygiene regulations is crucial for long-term sustainability in the F&B sector. Authorities are shifting from pre-approval processes to post-inspection and are imposing much higher penalties for violations.

2.1. New Regulations on Cash Registers (Kassenpflicht) and TSE 2025

All electronic cash register systems in Germany must be equipped with a Technical Security System (TSE) to prevent revenue manipulation.

  • Reporting deadline: Cash register systems purchased before 01/07/2025 must be reported to the tax authorities (Finanzbehörden) by 31/07/2025.

Consequences of non-compliance:
Violating TSE requirements constitutes a major breach of the GoBD accounting and data-storage rules.
The tax office may:

  • Reject the authenticity of your accounting records
  • Estimate your revenue
  • Impose back taxes and significant fines

This can seriously threaten the business’s survival.

2.2. Common Mistakes Related to Social Insurance and HR

Many shop owners still pay wages off the books (Schwarzlohn) or fail to fully register and pay social insurance contributions for employees.

Risks of violating social insurance rules:
Social insurance is legally mandatory for all employment relationships. Avoiding contributions or committing tax fraud can result in:

  • Administrative fines reaching millions of euros
  • Criminal prosecution

This is the largest legal and financial risk Vietnamese F&B owners face.

Employee identification documents:
Employees must always carry identification (ID card, passport, or work permit) to present during sudden inspections. This helps verify their legal work status and avoids potential legal issues.

2.3. Hygiene Issues and Reputational Risks

Some German states have begun implementing “Bureaucracy Reduction” (Bürokratieabbau) in restaurant laws, shifting from strict licensing procedures to notification-based procedures (Anzeigeverfahren).

This may sound easier, but in reality:

  • The entire responsibility for compliance-hygiene, building regulations, food safety—rests with the business owner from day one.

Authorities will increase surprise inspections to ensure compliance.
If serious violations are found, German law allows public disclosure of inspection results (Prangerwirkung), including:

  • Business name
  • Business address

Even without fines, this public exposure can destroy your reputation and reduce revenue faster than any monetary penalty.

Therefore, maintaining strict hygiene standards and standardized operations is essential to protect your brand and retain customers.

PART 3: ACTION PLAN & COMPREHENSIVE STRATEGY

To navigate regulatory changes and achieve sustainable growth, business owners must implement a comprehensive transformation strategy combining Legal Compliance, HR Management, and Brand Building.

3.1. Essential Actions

Emergency Labor Audit (Early 2024):

  • Review and update all employment contracts
  • Ensure payment of the 2024 minimum wage (€12.41)
  • Fully declare and pay social insurance contributions
  • Absolutely avoid off-the-books payments

This helps prevent back-payments and severe penalties.

Immigration HR Management:
  • Establish strict time-tracking procedures for employees holding the Opportunity Card
  • Ensure “Declarations of Employment Relationship” are always accurate and compliant with immigration law 

3.2. Turning Risk into Sustainable Growth

Legal compliance is not just an obligation—it is the foundation that allows business owners to operate with confidence and stability. Once labor contracts, social insurance, TSE, and hygiene rules are fully in place, business owners gain the clarity and freedom to focus on growth.

This is especially important in today’s digital landscape:

  • Invest in websites and social media to present the shop as safe, hygienic, and authentically compliant with German standards 
  • Share photos and videos of operations, hygiene protocols, and service quality to increase online presence 
  • Participate in effective digital marketing campaigns to stand out on Google, Facebook, Instagram, and continuously attract new customers 

Proper legal compliance allows you to avoid financial/legal threats and fully leverage digital marketing to grow your brand and revenue sustainably.

THE ROLE OF SPS MARKETING

To transform legal compliance into a marketing advantage, you can work with SPS Marketing, specializing in supporting Vietnamese F&B business owners in Germany with services including:

  • Professional website design: Showcasing detailed menus, shop photos, brand story, and customer reviews from external platforms 
  • Social media management: Facebook, Instagram, TikTok — with content focused on services, customer experience, and promotions 
  • Digital marketing campaigns: SEO, Google Ads, Social Ads — helping your shop stand out, increase reservations, and boost revenue 

When you comply fully with the law, you avoid risks and unlock the full power of digital branding to attract customers and achieve sustainable revenue growth. SPS Marketing will accompany you with effective communications solutions, helping your shop stand out in Germany’s competitive market.

CONCLUSION: Compliance Is the Foundation of Growth

Legal compliance in Germany is not just an obligation—it is the foundation for stable and sustainable operations. When employment contracts, insurance contributions, TSE requirements, and hygiene standards are all in order, you can operate with peace of mind without fear of sudden inspections.

This allows you to focus entirely on growing the business—through websites, social media, and digital marketing campaigns—proactively attracting customers rather than waiting passively. This is the key to building a reputable and long-lasting brand in the German market.

By partnering with SPS Marketing, you receive comprehensive support—from websites and social media to digital campaigns—helping your brand stand out, increase credibility, and grow revenue.

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