Employment Contract for Germany

Employment Contract Template for Germany

A German employment contract (Arbeitsvertrag) is a legally binding agreement that establishes and regulates the employment relationship between an employer and employee under German law. This document comprehensively outlines the terms and conditions of employment in compliance with German labor legislation, including the German Civil Code (BGB), Working Hours Act, and Federal Leave Act. It covers essential elements such as job responsibilities, compensation, working hours, leave entitlements, notice periods, and other mandatory provisions required by German employment law. The contract ensures compliance with statutory requirements while protecting both employer and employee interests within the German legal framework.

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What is a Employment Contract?

The Employment Contract (Arbeitsvertrag) is a fundamental document required for all employment relationships in Germany, regardless of the position or industry. It must be provided to employees within one month of the employment relationship beginning, as mandated by the Documentation Act (Nachweisgesetz). This contract serves as the primary reference point for the employment relationship, incorporating mandatory provisions under German labor law while allowing for customization based on specific role requirements and company policies. It includes essential information about working conditions, remuneration, benefits, and obligations of both parties, ensuring compliance with German employment legislation including the Civil Code (BGB), Working Hours Act (ArbZG), and various employee protection laws. The document is crucial for establishing clear terms of employment and preventing future disputes.

What sections should be included in a 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 reference to any prior agreements or offers

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 if applicable, and whether fixed-term or permanent

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

7. Working Hours: Regular working hours, break times, and overtime arrangements

8. Remuneration: Base salary, payment schedule, and any guaranteed bonuses

9. Leave Entitlements: Annual leave, public holidays, sick leave, and other types of leave

10. Social Security and Benefits: Statutory insurance contributions and company benefits

11. Termination: Notice periods and termination procedures

12. Confidentiality: Protection of company secrets and confidential information

13. Data Protection: Handling of personal data in accordance with GDPR

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

15. Severability: Standard clause on the validity of remaining provisions if others are invalid

What sections are optional to include in a Employment Contract?

1. Non-Competition: Post-employment competition restrictions, used for senior positions or where employee has access to sensitive information

2. Intellectual Property: IP rights assignment, relevant for creative or technical positions

3. Variable Compensation: Commission or bonus structures, used for sales positions or management roles

4. Company Car: Terms for provision and use of company vehicle, when applicable

5. Remote Work: Provisions for home office or remote working arrangements

6. Training and Development: Professional development commitments and training requirements

7. Stock Options: Share option schemes or equity participation, typically for executives

8. International Assignment: Terms for international work or travel, if role requires

9. Garden Leave: Provisions for paid leave during notice period, typically for senior roles

10. Additional Employment: Rules regarding secondary employment or freelance work

What schedules should be included in a Employment Contract?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and requirements

2. Schedule 2 - Compensation Details: Breakdown of salary components and benefits

3. Schedule 3 - Company Policies: Reference to or inclusion of relevant company policies

4. Schedule 4 - Confidentiality Agreement: Detailed confidentiality and data protection obligations

5. Schedule 5 - Bonus Scheme: Details of any variable compensation arrangements

6. Schedule 6 - Company Car Policy: Terms and conditions for company car usage

7. Schedule 7 - IT Policy: Rules for use of company IT systems and equipment

8. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines

9. Appendix B - Health and Safety Guidelines: Workplace safety rules and procedures

10. Appendix C - Travel Policy: Business travel rules and expense 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

Jurisdiction

Germany

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Clauses
Relevant Industries

Technology

Manufacturing

Financial Services

Healthcare

Retail

Professional Services

Education

Construction

Automotive

Energy

Telecommunications

Media and Entertainment

Logistics and Transportation

Real Estate

Hospitality

Relevant Teams

Human Resources

Legal

Finance

Sales

Marketing

Operations

Information Technology

Research and Development

Customer Service

Product Development

Administration

Engineering

Quality Assurance

Business Development

Corporate Communications

Relevant Roles

Chief Executive Officer

Managing Director

Department Head

Senior Manager

Project Manager

Software Developer

Sales Representative

Marketing Specialist

Human Resources Manager

Financial Analyst

Administrative Assistant

Research Scientist

Operations Manager

Customer Service Representative

Product Manager

Business Analyst

Technical Support Specialist

Account Manager

Legal Counsel

Design Engineer

Industries
Bürgerliches Gesetzbuch (BGB) - German Civil Code: Sections 611-630 specifically deal with employment contracts, defining basic rights and obligations of employers and employees, including contract formation, remuneration, and general working conditions
Arbeitszeitgesetz (ArbZG) - Working Hours Act: Regulates maximum working hours, break periods, rest periods, and work on Sundays and public holidays
Bundesurlaubsgesetz (BUrlG) - Federal Leave Act: Governs minimum vacation entitlements and holiday rights for employees
Kündigungsschutzgesetz (KSchG) - Protection Against Dismissal Act: Provides protection against unfair dismissal and regulates termination procedures for employment contracts
Allgemeines Gleichbehandlungsgesetz (AGG) - General Equal Treatment Act: Ensures non-discrimination in employment based on race, gender, religion, age, disability, and sexual orientation
Nachweisgesetz (NachwG) - Documentation Act: Requires employers to provide written documentation of essential employment terms and conditions
Mindestlohngesetz (MiLoG) - Minimum Wage Act: Sets the statutory minimum wage requirements and related obligations
Arbeitsschutzgesetz (ArbSchG) - Work Safety Act: Defines obligations regarding workplace safety and health protection
Sozialgesetzbuch (SGB) - Social Security Code: Regulates social security contributions and benefits, including health insurance, pension insurance, and unemployment insurance
Entgeltfortzahlungsgesetz (EntgFG) - Continued Remuneration Act: Regulates continued payment of wages during illness and on public holidays
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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