Employment Contract in Germany
The basis for an employment relationship between employer and employee in Germany is always a written employment contract.
The employment contract regulates important aspects of the employment relationship. Read the employment contract carefully before signing it. It may be helpful to have someone else review the contract, such as a friend, family member or advisor. If you have any questions about the contract or do not understand something, ask your future employer politely.
Wichtiger Hinweis
The employment contract should always be concluded in writing. Any subsequent changes should also be recorded in writing.
Fixed-term and permanent Employment Contracts
There are fixed-term and permanent jobs. A fixed-term job means that the employment relationship ends on a specific date, i.e. at a specific point in time. This date is specified in the employment contract. A permanent employment relationship lasts indefinitely and ends only through termination or a termination agreement. A permanent employment relationship gives you, the employee, more security.
Accordingly, there are fixed-term and permanent employment contracts. In contrast to a permanent employment contract, a fixed-term employment contract ends on a certain date specified in the contract. Fixed-term employment contracts are common for jobs replacing someone on parental leave or for jobs related to a specific project. The employment relationship ends when the person returns or the project is completed.
Contents of an Employment Contract
An employment contract should contain the following information and working conditions:
- Name and address of the contracting parties: that is, yourself and your employer.
- Place of work: This specifies where you will be working. If you are required to work in several locations, this should be specified here.
- Start of employment: This specifies the date on which you will start working for this employer.
- End of the employment relationship: This information is only relevant if it is a fixed-term employment contract.
- Notice period: This specifies how much notice you or your employer must give in writing if the employment relationship is to be terminated at a specific point in time.
- Duration of the probationary period: A probationary period of up to six months at the start of employment is common. During this period, both you and your employer can terminate the employment relationship at short notice (i.e. without observing the notice period).
- Basic salary: This is the money you receive from your employer each month for your job. The gross salary is specified. The contract should also state when the salary is paid into your account – at the beginning, middle or end of the month.
- Special payments: Some employers pay bonuses, premiums or Christmas bonuses in addition to the basic salary. This should also be noted in the employment contract.
- Working hours: Working hours are usually specified as several hours per week. For a full-time position, this is generally 35-40 hours per week. Make sure that there are fair overtime regulations, for example, financial compensation if you have to work significantly longer hours for an extended period. It is also common to compensate for overtime by working fewer hours on other days.
- Holiday entitlement: The number of days of holiday you are entitled to per year should be specified. Please note that you have a statutory minimum entitlement to holiday leave.
- Job description: The employment contract should briefly describe what your role and core tasks will be.
- Collective agreements and works agreements: In addition to the employment contract, special regulations often apply. For example, employers' associations and trade unions have concluded so-called collective agreements in some industries. If such additional regulations exist, this should be noted in the employment contract.