Edit: and to make sure; if an employee is good we will do anything we can afford to keep her/him; we are not the employer frauders like Oracle is in Malaga you also encounter...
That being said, the employer still has some protection. You can hire someone for 3 or 6 months and then decide not to renew his contract. You can also use the experimental period clause to void the contract in the first two weeks up to three months, according to the contract duration. The latter is sometimes abused here: hire someone with a long-duration contract and then, just before the experimental period ends, send him away.
I work for a rather big german company and they dislocated some stuff (software development, mostly) here. They're very happy with the overall result, but you can easily tell that there are guys which work around 1-2hrs per day. For the company it's OK-ish, they're still paying way below what they paid elsewhere. But for the other employees, it's somewhat shitty.
But what was your biggest issue with employment laws, here? The compensation you'd eventually have to pay when firing someone?