Contract To Hire Agreement Template for Germany

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Key Requirements PROMPT example:

Contract To Hire Agreement

"I need a Contract to Hire Agreement for a Senior Software Developer position in our Berlin office, with a 6-month temporary period starting March 1, 2025, including specific performance metrics for cloud architecture development and team leadership that will determine conversion to permanent status."

What is a Contract To Hire Agreement?

The Contract to Hire Agreement is utilized when an organization wishes to evaluate an employee's suitability for a permanent position through an initial temporary employment period. This document type is particularly relevant in the German market, where employment relationships are heavily regulated and employers seek to ensure proper fit before making long-term commitments. The agreement covers both the temporary employment phase and the potential permanent position, including specific performance criteria, evaluation processes, and conversion terms. It must comply with German labor laws, including the Civil Code (BGB), Employee Hiring Act (AÜG), and various employment protection regulations. This arrangement provides flexibility for both parties while ensuring legal compliance and clear expectations for the potential transition to permanent employment.

What sections should be included in a Contract To Hire Agreement?

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

2. Background: Context of the agreement, including the purpose of the temporary-to-permanent arrangement

3. Definitions: Key terms used throughout the agreement, including 'Temporary Period', 'Conversion Date', 'Permanent Employment'

4. Term and Nature of Employment: Duration of the temporary period and conditions for transition to permanent employment

5. Position and Duties: Description of the role, responsibilities, and reporting structure during both temporary and permanent phases

6. Compensation and Benefits: Salary, benefits, and any changes that will apply upon conversion to permanent status

7. Working Hours and Location: Specified working hours, workplace location, and any flexibility arrangements

8. Conversion Process: Detailed process and conditions for converting to permanent employment

9. Performance Evaluation: Performance criteria and evaluation process that will be used to assess suitability for permanent employment

10. Termination Provisions: Conditions under which either party may terminate the agreement during both temporary and permanent phases

11. Confidentiality and Data Protection: Obligations regarding company information and personal data handling

12. Governing Law and Jurisdiction: Specification of German law application and jurisdiction for disputes

What sections are optional to include in a Contract To Hire Agreement?

1. Intellectual Property Rights: Required if the role involves creation of intellectual property or access to company IP

2. Non-Competition: Optional restrictions on working for competitors, subject to German law limitations

3. Training and Development: Include if specific training programs or development opportunities are part of the arrangement

4. Remote Work Provisions: Include if the role allows for remote working arrangements

5. Works Council Provisions: Required if a works council exists in the company

6. International Assignment Provisions: Include if the role involves work across multiple countries

7. Company Car or Equipment: Include if specific tools or vehicles are provided as part of the employment

8. Bonus Schemes: Include if performance-based bonuses or other incentive schemes apply

What schedules should be included in a Contract To Hire Agreement?

1. Schedule 1 - Job Description: Detailed description of roles and responsibilities

2. Schedule 2 - Compensation Structure: Detailed breakdown of salary, benefits, and any changes upon conversion

3. Schedule 3 - Performance Metrics: Specific KPIs and evaluation criteria for permanent conversion

4. Schedule 4 - Company Policies: Reference to applicable company policies and procedures

5. Schedule 5 - Benefits Package: Detailed description of benefits during temporary and permanent phases

6. Appendix A - Data Protection Notice: Required GDPR compliance information and consent forms

7. Appendix B - Code of Conduct: Company's code of conduct and ethical guidelines

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

Relevant Industries

Information Technology

Manufacturing

Professional Services

Financial Services

Healthcare

Engineering

Construction

Research and Development

Telecommunications

Media and Entertainment

Retail

Logistics

Consulting

Energy

Biotechnology

Relevant Teams

Human Resources

Legal

Finance

Information Technology

Operations

Sales

Marketing

Research and Development

Product Development

Quality Assurance

Customer Service

Business Development

Engineering

Project Management Office

Administration

Relevant Roles

Software Developer

Project Manager

Business Analyst

Sales Representative

Financial Analyst

Marketing Manager

Research Scientist

Engineering Specialist

HR Coordinator

Operations Manager

Product Manager

Quality Assurance Specialist

Data Analyst

Account Manager

Technical Consultant

Industries
German Civil Code (Bürgerliches Gesetzbuch - BGB): Sections 611-630 govern employment contracts, including basic terms and conditions, notice periods, and general contractual obligations between employer and employee
Employee Hiring Act (Arbeitnehmerüberlassungsgesetz - AÜG): Regulates temporary employment and staff leasing arrangements, including maximum duration of temporary assignments and conditions for conversion to permanent employment
Protection Against Unfair Dismissal Act (Kündigungsschutzgesetz - KSchG): Provides protection against unfair dismissal and regulates the conditions under which employment relationships can be terminated
Working Hours Act (Arbeitszeitgesetz - ArbZG): Regulates maximum working hours, rest periods, and break requirements that must be considered in the employment arrangement
General Data Protection Regulation (GDPR) and Federal Data Protection Act (Bundesdatenschutzgesetz - BDSG): Governs the collection, processing, and storage of employee personal data during the hiring process and employment relationship
Social Security Code (Sozialgesetzbuch - SGB): Defines mandatory social security contributions and insurance requirements for both temporary and permanent employment relationships
Works Constitution Act (Betriebsverfassungsgesetz - BetrVG): Regulates employee representation rights and works council involvement in hiring decisions and employment conditions
Minimum Wage Act (Mindestlohngesetz - MiLoG): Establishes minimum wage requirements that must be observed in both temporary and permanent employment arrangements
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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