Elternzeit is the right of employed parents in Germany to take time away from work to raise a child, while keeping their job. It can be taken by either parent, or by both at once, and can be split into separate blocks up to the child's eighth birthday, subject to how much may be deferred beyond the early years.
Leave and pay are separate things
Elternzeit itself is unpaid. The income during it comes from Elterngeld, a state parental allowance paid as a proportion of previous net earnings up to a cap, for a defined number of months. Confusing the two is common: an employee may be on Elternzeit for far longer than they receive Elterngeld.
Job protection
The employment relationship continues throughout. Dismissal protection applies from the point notice of Elternzeit is given and runs through the leave, and employees have a right to return to comparable work. Part-time work during Elternzeit is permitted within limits, which many parents use to phase their return.
Why it matters when hiring internationally
Elternzeit is generous by international standards and the notice and dismissal protections are strict. A company used to shorter, more flexible arrangements can easily mishandle a request, and the consequences of getting dismissal protection wrong in Germany are serious. This is squarely the responsibility of the legal employer.