Lifetime Employment Contract Template for Germany

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.

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