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Startup Employment Agreement

Startup Employment Agreement Template for Germany

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Key Requirements PROMPT example:

Startup Employment Agreement

"I need a Startup Employment Agreement under German law for a senior software developer position, including equity compensation (VSOP) and remote work provisions, with employment starting March 1, 2025."

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Document background
The Startup Employment Agreement is specifically designed for companies operating in the German startup ecosystem, providing a legally compliant framework for employment relationships while addressing unique startup characteristics. This document is essential when hiring employees in German startup companies, whether they are early-stage or growth-phase startups. It includes mandatory provisions required by German labor law, such as working hours, vacation entitlements, and notice periods, while also incorporating startup-specific elements like equity participation, intellectual property assignments, and flexible working arrangements. The agreement ensures compliance with key German legislation including the Civil Code (BGB), Protection Against Dismissal Act (KSchG), and Working Hours Act (ArbZG), while maintaining the flexibility and innovation-focused culture typical of startups.
Suggested Sections

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

2. Background: Brief context of the employment relationship and company background

3. Definitions: Key terms used throughout the agreement

4. Position and Duties: Job title, role description, responsibilities, and reporting structure

5. Commencement and Term: Start date, probationary period, and type of contract (fixed-term or permanent)

6. Place of Work: Primary workplace location and any flexibility arrangements

7. Working Hours: Regular working hours, flexibility, overtime regulations

8. Remuneration: Base salary, payment intervals, and basic benefits

9. Vacation and Leave: Annual leave entitlement, public holidays, and other leave rights

10. Illness and Incapacity: Sick leave policies and continued payment regulations

11. Confidentiality: Protection of company secrets and confidential information

12. Data Protection: Handling of personal data in compliance with GDPR

13. Termination: Notice periods, grounds for termination, and process

14. Post-Termination Obligations: Ongoing duties after employment ends

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

16. Severability: Standard clause ensuring remainder of contract stays valid if parts are invalid

Optional Sections

1. Equity Participation: Details of any share options or virtual share programs, relevant for startups offering equity compensation

2. Bonus Scheme: Performance-based compensation structure, if applicable

3. Intellectual Property Rights: Detailed provisions about IP ownership, particularly relevant for technical or creative roles

4. Remote Work Provisions: Detailed arrangements for remote work, if applicable

5. Non-Competition: Post-employment competition restrictions, subject to German law limitations

6. International Travel: Terms for international work if company has multiple locations

7. Training and Development: Provisions for professional development and required training

8. Company Car/Benefits: Additional benefits beyond basic compensation

9. Side Activities: Rules regarding secondary employment or freelance work

Suggested Schedules

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

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

3. Schedule 3 - Equity Participation Terms: Detailed terms of any share option or virtual share program

4. Schedule 4 - Confidential Information: Specific definition of confidential information and trade secrets

5. Schedule 5 - Company Policies: Reference to or inclusion of key company policies

6. Schedule 6 - Data Protection Notice: Detailed information about personal data processing

7. Appendix A - Invention Assignment: Detailed provisions regarding employee inventions and their assignment

8. Appendix B - IT Security Guidelines: Specific rules for IT usage and security protocols

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Company
Confidential Information
Competing Business
Equity Participation
Employee Invention
Intellectual Property Rights
Parent Company
Position
Pre-Contractual IP
Probationary Period
Regular Working Hours
Remuneration
Share Option Program
Startup
Subsidiary
Trade Secrets
Virtual Share Program
Work Product
Workplace
Base Salary
Bonus
Business Day
Cause
Company Group
Company Policies
Effective Date
Fixed Term
Good Leaver
Bad Leaver
Notice Period
Personal Data
Professional Development
Related Companies
Target Bonus
Term
Territory
Working Time
Clauses
Parties
Recitals
Definitions
Appointment
Term and Probationary Period
Position and Duties
Place of Work
Working Hours
Remuneration
Bonus Arrangements
Equity Participation
Benefits
Expenses
Vacation
Sick Leave
Other Leave
Training and Development
Performance Review
Confidentiality
Intellectual Property
Data Protection
Non-Competition
Non-Solicitation
Employee Inventions
Company Property
IT Security
Secondary Employment
Notice Period
Termination
Garden Leave
Post-Termination Obligations
Return of Property
References
Integration
Amendments
Severability
Governing Law
Jurisdiction
Entire Agreement
Notices
Force Majeure
Assignment
Counterparts
Relevant Industries

Technology

Software Development

E-commerce

FinTech

BioTech

Digital Health

Clean Technology

Software as a Service (SaaS)

Digital Media

Artificial Intelligence

Internet of Things (IoT)

Mobile Applications

Blockchain

Cybersecurity

Consumer Internet

Enterprise Software

Relevant Teams

Engineering

Product Development

Design

Marketing

Sales

Operations

Human Resources

Finance

Legal

Customer Success

Data Science

Research and Development

Quality Assurance

Business Development

Administration

Relevant Roles

Chief Executive Officer (CEO)

Chief Technology Officer (CTO)

Chief Financial Officer (CFO)

Chief Product Officer (CPO)

Chief Marketing Officer (CMO)

Software Engineer

Full Stack Developer

Frontend Developer

Backend Developer

Product Manager

UX/UI Designer

Data Scientist

Business Development Manager

Account Manager

Marketing Manager

Operations Manager

HR Manager

Sales Representative

Customer Success Manager

Growth Hacker

DevOps Engineer

Quality Assurance Engineer

Content Manager

Digital Marketing Specialist

Financial Analyst

Industries
Bürgerliches Gesetzbuch (BGB): German Civil Code - Particularly Sections 611-630, governing employment contracts and basic employment relationships
Kündigungsschutzgesetz (KSchG): Employment Protection Act - Regulates termination protection and notice periods
Arbeitszeitgesetz (ArbZG): Working Hours Act - Regulates maximum working hours, rest periods, and break requirements
Bundesurlaubsgesetz (BUrlG): Federal Leave Act - Governs minimum vacation entitlements and holiday regulations
Mindestlohngesetz (MiLoG): Minimum Wage Act - Sets the legal minimum wage requirements
Arbeitnehmererfindungsgesetz (ArbnErfG): Employee Invention Act - Particularly relevant for startups, governing rights to employees' inventions and innovations
Entgeltfortzahlungsgesetz (EntgFG): Continued Remuneration Act - Regulates continued payment during illness and holidays
Nachweisgesetz (NachwG): Documentation Act - Specifies required written documentation of employment terms
Bundesdatenschutzgesetz (BDSG): Federal Data Protection Act - Governs handling of employee personal data and privacy rights
Gesetz zur Regelung eines allgemeinen Mindestlohns (MiLoG): General Minimum Wage Act - Sets mandatory minimum wage levels
Allgemeines Gleichbehandlungsgesetz (AGG): General Equal Treatment Act - Ensures non-discrimination in employment
Gesetz über Teilzeitarbeit und befristete Arbeitsverträge (TzBfG): Part-Time and Fixed-Term Employment Act - Relevant for flexible employment arrangements common in startups
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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