Business Employment Contract for Germany

Business Employment Contract Template for Germany

A comprehensive employment agreement governed by German law that establishes the formal employment relationship between a company and a professional employee. This contract incorporates key requirements from German employment legislation, including provisions from the German Civil Code (BGB), Protection Against Unfair Dismissal Act (KSchG), and other relevant employment laws. It details essential terms such as role responsibilities, compensation, working hours, leave entitlements, and termination provisions, while ensuring compliance with German labor regulations and employee protections.

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What is a Business Employment Contract?

This Business Employment Contract is designed for use in establishing formal employment relationships within the German jurisdiction. It serves as a comprehensive agreement between employers and professional employees, incorporating mandatory requirements under German employment law while providing flexibility for company-specific terms. The document is particularly suited for businesses operating in Germany who need to ensure compliance with local labor regulations while hiring professional staff. It includes essential provisions required by German legislation such as the German Civil Code (BGB), Working Time Act (ArbZG), and Federal Leave Act (BUrlG), among others. The contract is structured to address both statutory requirements and practical business needs, making it suitable for various professional roles across different industry sectors.

What sections should be included in a Business Employment Contract?

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the contract

4. Position and Duties: Job title, role description, responsibilities, and reporting structure

5. Commencement and Duration: Start date, probationary period, and type of contract (fixed-term or indefinite)

6. Place of Work: Primary workplace location and any mobility requirements

7. Working Hours: Regular working hours, overtime provisions, and break periods in compliance with ArbZG

8. Remuneration: Base salary, payment schedule, and any variable compensation components

9. Benefits: Statutory and additional benefits including health insurance, pension contributions

10. Leave Entitlement: Annual leave, public holidays, and other types of leave as per BUrlG

11. Illness and Incapacity: Sick pay provisions and notification requirements

12. Confidentiality: Protection of company information and trade secrets

13. Data Protection: Handling of personal data in compliance with BDSG

14. Notice Period: Terms for termination by either party in accordance with KSchG

15. Governing Law: Confirmation of German law application and jurisdiction

What sections are optional to include in a Business Employment Contract?

1. Bonus Arrangements: Used when the role includes performance-based bonuses or commission structures

2. Company Car: Include when providing a company vehicle or car allowance

3. International Travel: Required for positions involving regular international travel

4. Post-Contractual Non-Compete: Include when restricting post-employment competition, subject to statutory requirements

5. Intellectual Property: Necessary for roles involving creative or innovative work

6. Remote Work Provisions: Include for positions allowing work from home or flexible locations

7. Training Obligations: Used when specific training requirements or repayment provisions apply

8. Stock Options/Employee Share Scheme: Include when offering equity-based compensation

9. Works Council Provisions: Required for companies with works council agreements

What schedules should be included in a Business Employment Contract?

1. Job Description: Detailed outline of role responsibilities and requirements

2. Compensation Structure: Detailed breakdown of salary components and benefits

3. Company Policies: Reference to key company policies that form part of the employment terms

4. Data Privacy Notice: Detailed information about personal data processing as required by GDPR

5. Bonus Scheme Rules: If applicable, detailed rules and calculations for bonus payments

6. Company Car Policy: If applicable, terms of company car usage and maintenance

7. IT and Communications Policy: Rules regarding use of company IT systems and communication tools

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Clauses
Relevant Industries

Technology

Manufacturing

Financial Services

Professional Services

Healthcare

Retail

Construction

Energy

Telecommunications

Automotive

Logistics

Media and Entertainment

Education

Real Estate

Consulting

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Product Management

Quality Assurance

Supply Chain

Customer Service

Business Development

Strategy

Administration

Relevant Roles

Managing Director

Department Head

Senior Manager

Project Manager

Technical Lead

Senior Software Engineer

Financial Controller

HR Manager

Operations Manager

Sales Director

Marketing Manager

Research Scientist

Business Analyst

Product Manager

Account Manager

Legal Counsel

IT Manager

Quality Assurance Manager

Supply Chain Manager

Business Development Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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