Lifetime Employment Contract for Germany

Lifetime Employment Contract Template for Germany

A comprehensive employment agreement governed by German law that establishes a permanent, lifetime employment relationship between an employer and a key employee. This specialized contract type, while rare in modern practice, provides exceptional job security and is typically reserved for high-level executives or crucial specialists. The document incorporates all necessary elements required under German labor law, including compliance with the Bürgerliches Gesetzbuch (BGB), Kündigungsschutzgesetz (KSchG), and other relevant employment regulations. It details terms of employment, responsibilities, compensation, benefits, and limited termination provisions while ensuring alignment with constitutional principles regarding occupational freedom.

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What is a Lifetime Employment Contract?

The Lifetime Employment Contract (Lebenszeitarbeitsvertrag) is a specialized employment agreement used in the German market for securing long-term commitments from crucial personnel. This document type is particularly relevant when companies seek to retain exceptional talent or maintain continuity in key positions, especially in traditional industries or family-owned businesses. While lifetime employment contracts are relatively rare in modern German business practice due to their binding nature, they remain a valuable tool for specific situations where both employer and employee seek to establish a permanent professional relationship. The contract must carefully balance the employee's guaranteed lifetime employment with the employer's operational needs while ensuring compliance with German labor law, including the Civil Code (BGB), Employment Protection Act, and constitutional provisions regarding occupational freedom. This document includes comprehensive terms covering all aspects of the employment relationship, from basic working conditions to special benefits and limited termination circumstances.

What sections should be included in a Lifetime Employment Contract?

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

2. Background: Context of the lifetime employment arrangement and basis for the agreement

3. Definitions: Key terms used throughout the contract

4. Term of Employment: Specification of the lifetime nature of the contract and start date

5. Position and Duties: Job title, responsibilities, and scope of employment

6. Place of Work: Primary workplace location and potential for relocation

7. Working Hours: Regular working hours, flexibility arrangements, and overtime provisions

8. Remuneration: Base salary, payment intervals, and annual review mechanism

9. Benefits: Standard benefits package including insurance, pension, and other perks

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

11. Illness and Incapacity: Sick pay provisions and long-term illness procedures

12. Confidentiality: Protection of company information and trade secrets

13. Intellectual Property: Ownership of work products and innovations

14. Performance Reviews: Assessment procedures and career development

15. Disciplinary Procedures: Process for handling misconduct and poor performance

16. Termination Provisions: Limited circumstances for contract termination (gross misconduct, permanent incapacity)

17. Data Protection: Handling of personal data under GDPR and German data protection laws

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

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

1. Mobility Clause: Required if the position may involve relocation or travel

2. Non-Competition: Post-employment restrictions, if applicable under German law

3. Works Council Provisions: Required if a works council exists in the organization

4. Educational Development: Include if the contract includes specific training or education commitments

5. Representative Authority: Required if the employee will have power to represent the company

6. Company Car: Include if a company car is part of the benefits package

7. Bonus Arrangements: Optional performance-related compensation structures

8. Sabbatical Provisions: Include if sabbatical leave is offered

9. Part-Time Transition: Include provisions for potential future transition to part-time work

What schedules should be included in a Lifetime Employment Contract?

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

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

3. Schedule 3 - Company Policies: Reference to applicable company policies and procedures

4. Schedule 4 - Performance Metrics: Specific KPIs and performance evaluation criteria

5. Schedule 5 - Training Requirements: Mandatory training and development programs

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

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

8. Appendix C - Health and Safety Guidelines: Workplace safety procedures and requirements

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
Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Engineering

Automotive

Chemical Industry

Banking and Financial Services

Research and Development

Education

Healthcare

Pharmaceuticals

Technology

Family-Owned Businesses

Industrial Production

Professional Services

Energy and Utilities

Relevant Teams

Human Resources

Legal

Senior Management

Board of Directors

Corporate Governance

Compensation & Benefits

Employee Relations

Compliance

Risk Management

Strategic Planning

Relevant Roles

Chief Executive Officer

Managing Director

Chief Technology Officer

Senior Research Scientist

Principal Engineer

Head of Development

Master Craftsperson

Senior Academic

Department Head

Chief Financial Officer

Technical Director

Lead Architect

Master Brewer

Senior Specialist

Chief Medical Officer

Plant Manager

Research Director

Principal Consultant

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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