The Unlimited Employment Contract (unbefristeter Arbeitsvertrag) is the standard form of employment agreement in Germany, used to establish permanent employment relationships. This document is essential when hiring employees on a permanent basis in Germany and must comply with various German labor laws and regulations, including the German Civil Code (BGB) and the Evidence Act (Nachweisgesetz). It should be used whenever a company intends to hire an employee for an indefinite period, as opposed to fixed-term employment. The contract includes mandatory provisions required by German law, such as working hours, compensation, leave entitlements, and notice periods, while allowing for customization based on specific role requirements and company policies. It serves as the primary document governing the employment relationship and provides both parties with legal certainty regarding their rights and obligations.
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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 effective date
3. Definitions: Key terms used throughout the contract
4. Position and Duties: Job title, role description, and main responsibilities
5. Place of Work: Primary workplace location and any mobility requirements
6. Working Hours: Regular working hours, break times, and flexibility arrangements
7. Remuneration: Base salary, payment intervals, and basic benefits
8. Leave Entitlement: Annual leave, public holidays, and other leave rights
9. Illness and Continued Payment: Sick leave notification requirements and sick pay provisions
10. Notice Periods: Notice requirements for termination by either party
11. Confidentiality: Obligations regarding company secrets and confidential information
12. Data Protection: GDPR compliance and handling of personal data
13. Integration Clause: Confirmation that the contract represents the entire agreement
1. Probationary Period: Include when a probationary period is desired (max 6 months under German law)
2. Bonus Arrangements: Include when performance-based or other bonus systems apply
3. Company Car: Include when a company car is provided, with usage terms
4. Non-Competition: Include post-contractual non-compete provisions (requires compensation)
5. Overtime Arrangements: Include specific overtime compensation or arrangements
6. Remote Work: Include when home office or remote work is permitted
7. Additional Benefits: Include when offering pension contributions, health insurance, or other benefits
8. Intellectual Property: Include for roles involving creative or innovative work
9. Training Obligations: Include when specific training requirements or cost reimbursement applies
10. Secondary Employment: Include restrictions on additional employment if needed
1. Job Description: Detailed description of role responsibilities and requirements
2. Compensation Details: Breakdown of salary components and benefits
3. Company Policies: Reference to applicable workplace policies and procedures
4. Data Privacy Notice: Detailed information about personal data processing
5. Company Car Policy: If applicable, detailed terms of company car usage
6. Bonus Scheme Rules: If applicable, detailed bonus calculation and conditions
7. IT Usage Policy: Rules for use of company IT systems and equipment
8. Travel Policy: If applicable, business travel rules and expense procedures
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