Employment contract: The most important points

In short: The employment contract regulates duties, working time, pay, leave and termination; the employer must record the essential terms in writing.

In more detail: An employment relationship arises even through an oral agreement, but the Evidence Act (Nachweisgesetz) obliges employers to document the essential contract terms in writing and hand them over. For apprentices a training contract with its own rules applies, for regular employees an employment contract.

In Depth

Important contents

• Names and addresses of the parties, start of employment, in case of a fixed term the end.
• Job and place of work.
• Working time (hours per week, scheduling, overtime, breaks).
• Pay (amount, due date, supplements, special payments).
• Leave (number of days, statutory minimum 20 days for a 5-day week).
• Probation (at most 6 months) and notice periods.
• Reference to collective agreements or works agreements.

Probation and fixed term

During probation it is usually possible to terminate with two weeks’ notice. A fixed term without objective reason is allowed for up to two years (with up to three extensions); after that an objective reason is needed. The fixed term must be agreed in writing, otherwise the employment is treated as permanent.

Termination and reference

Termination must be in writing (§ 623 BGB); email or messenger is not enough. Statutory basic period: four weeks to the 15th or to the end of the month, lengthening with length of service for employers. On leaving there is an entitlement to an employment reference. Against a dismissal you can file a protection-against-dismissal action within three weeks.

Before signing

Read everything calmly, including the small print: forfeiture periods for claims, non-compete clauses, repayment clauses for training, flat-rate overtime compensation. Ask about anything unclear and get a copy. The minimum wage and statutory rest periods cannot be agreed away. Advice is offered by the trade union, the employees’ chamber or a specialist lawyer. This article is not legal advice.

See also: Training contract, Probation and termination, Federal Leave Act, Working Hours Act