Job Contract - Germany

Job Contract Template for Germany

A German employment contract (Arbeitsvertrag) is a legally binding agreement that establishes the employment relationship between an employer and employee under German law. This document complies with German labor legislation, including the German Civil Code (BGB) and the Documentation Act (Nachweisgesetz), outlining essential terms such as role responsibilities, working hours, compensation, benefits, and termination provisions. The contract incorporates mandatory German labor law requirements while providing flexibility to address specific employment arrangements and additional terms based on the position and industry.

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What is a Job Contract?

This Job Contract template is designed for use in establishing formal employment relationships under German law. It serves as a comprehensive agreement between employers and employees, incorporating all essential terms required by German labor legislation, particularly the Nachweisgesetz (Documentation Act) and relevant sections of the Bürgerliches Gesetzbuch (German Civil Code). The document should be used when hiring new employees or formalizing existing employment relationships in Germany, ensuring compliance with local labor laws while protecting both employer and employee interests. It includes mandatory provisions regarding working hours, remuneration, leave entitlements, and notice periods, while allowing for customization based on specific role requirements and company policies.

What sections should be included in a Job Contract?

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

2. Background: Brief context of the employment relationship and basis for the agreement

3. Definitions: Key terms used throughout the contract

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

5. Commencement and Duration: Start date and type of contract (fixed-term or permanent)

6. Probationary Period: Length of probationary period and applicable notice periods during this time

7. Place of Work: Primary workplace location and any mobility requirements

8. Working Hours: Regular working hours, break times, and overtime arrangements

9. Remuneration: Base salary, payment intervals, and any guaranteed bonuses

10. Annual Leave: Vacation entitlement and rules for requesting/taking leave

11. Sick Pay: Sick leave entitlement and notification requirements

12. Notice Period: Notice periods for termination by either party

13. Confidentiality: Obligations regarding company confidential information

14. Data Protection: Employee consent and company obligations under GDPR

15. Governing Law: Confirmation that German law applies to the contract

What sections are optional to include in a Job Contract?

1. Variable Compensation: Details of bonus schemes, commission structures, or other variable pay elements

2. Company Car: Terms of company car provision and usage

3. Working From Home: Rules and arrangements for remote working

4. Non-Competition: Post-employment competition restrictions (must include compensation)

5. Intellectual Property: Rights and obligations regarding work-created IP

6. Training Requirements: Mandatory training and professional development expectations

7. International Travel: Terms for business travel and international assignments

8. Stock Options: Participation in company stock option or share schemes

9. Additional Benefits: Other benefits such as private health insurance, pension schemes

What schedules should be included in a Job Contract?

1. Job Description: Detailed description of role responsibilities and requirements

2. Bonus Scheme Rules: Detailed terms and conditions of variable compensation

3. Company Policies: Key company policies that form part of the employment terms

4. Benefits Summary: Detailed description of all benefits and eligibility conditions

5. Data Privacy Notice: Detailed information about personal data processing

6. Company Car Policy: Detailed rules regarding company car usage and maintenance

7. IT Usage Policy: Rules and guidelines for using company IT systems

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

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Agreement Between Company And Employee

German law-compliant employment agreement establishing terms and conditions between employer and employee, incorporating essential protections under German labor legislation.

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What is a Job Contract?

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Authors

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