Employers in Germany should not underestimate the meaning of reference letters – the German Arbeitszeugnis. German employment law and employment practice provide employers with clear guidelines as to when and how they must issue a reference letter. Every employee in Germany is entitled to a reference letter according to Section 109 German Industrial Code (Gewerbeordnung – GewO) in line with German law requirements. An entitlement for a reference also arises for managing directors and trainees. Employers need to know the specifics on how to write reference letters and – equally important – how to analyze reference letters of candidates in the hiring process.