Employment Service Agreement Template for Germany

An Employment Service Agreement is a comprehensive legal document that establishes the contractual relationship between employers and employees in Germany. This agreement ensures compliance with German labor law requirements and provides written documentation of employment terms as mandated by the Nachweisgesetz (Documentation Act).

When do you need this document?

You need an Employment Service Agreement whenever hiring new employees in Germany, whether for permanent positions, fixed-term contracts, or part-time roles. This document is essential when formalizing existing employment relationships that lack proper documentation, converting freelance arrangements to employment contracts, or updating existing agreements to reflect changes in German labor law. Companies expanding into Germany must use compliant employment agreements to avoid legal complications and ensure proper worker protection.

Key legal considerations

Your Employment Service Agreement must include mandatory elements required by the Nachweisgesetz, including job description, workplace location, working hours, remuneration details, and notice periods. The agreement should specify probationary periods, which cannot exceed six months under German law, and clearly outline vacation entitlements that meet minimum requirements under the Bundesurlaubsgesetz. You must include termination provisions that comply with the Kündigungsschutzgesetz, particularly for employees in companies with more than ten workers. The contract should address continued payment during illness as required by the Entgeltfortzahlungsgesetz and incorporate non-discrimination clauses aligned with the Allgemeines Gleichbehandlungsgesetz.

Legal requirements in Germany

German employment law requires specific written documentation of employment terms within one month of starting work. Your agreement must comply with the Bürgerliches Gesetzbuch provisions on service contracts, particularly sections 611-630 that govern employment relationships. Working hours must adhere to the Arbeitszeitgesetz, limiting regular working time to eight hours per day and 48 hours per week. The contract must specify minimum vacation entitlements of 24 working days per year for a six-day work week under the Bundesurlaubsgesetz. For companies with more than ten employees, dismissal protection under the Kündigungsschutzgesetz applies, requiring socially justified reasons for termination. The agreement must also ensure compliance with collective bargaining agreements (Tarifverträge) where applicable and include mandatory social security provisions.