The General Employment Agreement serves as the foundational document for establishing employment relationships in Germany, required by law under the Nachweisgesetz (Documentation Act). This agreement is essential for any employer hiring employees in Germany, whether it's a domestic company or a foreign entity with German operations. It incorporates mandatory provisions of German labor law while allowing customization for specific employment circumstances. The document ensures compliance with various German employment regulations, including the Civil Code (BGB), Working Hours Act (ArbZG), and Federal Leave Act (BUrlG). It should be used at the commencement of any new employment relationship and includes all statutorily required information about the position, working conditions, remuneration, and other essential terms of employment.
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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 agreement
4. Position and Duties: Job title, role description, responsibilities, and reporting structure
5. Commencement and Duration: Start date, term of employment (fixed-term or permanent), and probationary period if applicable
6. Place of Work: Primary workplace location and any mobility requirements
7. Working Hours: Regular working hours, break times, and overtime provisions
8. Remuneration: Base salary, payment schedule, and method of payment
9. Benefits: Statutory and contractual benefits including health insurance, pension contributions
10. Annual Leave: Vacation entitlement, public holidays, and leave request procedures
11. Sick Leave: Sick pay entitlement and notification requirements
12. Confidentiality: Protection of company confidential information and trade secrets
13. Data Protection: Handling of personal data in compliance with GDPR
14. Notice Period: Notice requirements for termination by either party
15. Governing Law: Confirmation of German law application and jurisdiction
1. Bonus Arrangements: Include when the role includes performance-based bonuses or commission structures
2. Company Car: Include when a company car is provided as part of the employment package
3. Stock Options: Include for positions eligible for company share schemes or stock options
4. Post-termination Restrictions: Include for senior positions or roles with access to sensitive information
5. International Travel: Include when the role requires regular international travel
6. Home Office Arrangements: Include when remote working is permitted or required
7. Training Requirements: Include when specific training or qualifications are required
8. Collective Agreements: Include when the employment is subject to collective bargaining agreements
9. Works Council: Include references to works council rights where applicable
1. Schedule 1 - Job Description: Detailed description of role responsibilities and requirements
2. Schedule 2 - Bonus Scheme Rules: Detailed terms of any applicable bonus or commission schemes
3. Schedule 3 - Company Policies: List of applicable company policies and procedures
4. Schedule 4 - Benefits Summary: Detailed description of all benefits and allowances
5. Schedule 5 - IT and Communication Systems Policy: Rules regarding use of company IT systems and equipment
6. Appendix A - Data Privacy Notice: Detailed information about personal data processing
7. Appendix B - Code of Conduct: Company's code of conduct and ethical guidelines
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