Get Hired with Confidence: Understanding Employment Contracts in Germany

Updated on
May 17, 2023

If you're planning to work in Germany, it's important to understand the country's employment laws and regulations, particularly when it comes to employment contracts. Employment contracts in Germany are legally binding agreements between an employer and employee that outline the terms and conditions of employment. In this article, we will provide a comprehensive guide to employment contracts in Germany, including the types of contracts available, the key terms and conditions to be aware of, and your rights and obligations as an employee.

Types of Employment Contracts in Germany

There are two main types of employment contracts in Germany: fixed-term contracts and open-ended contracts. Fixed-term contracts are for a specific period of time or a specific project and expire automatically at the end of the term. Employers are only allowed to use fixed-term contracts in certain circumstances, such as when filling a temporary position or when there is a specific project that has a set end date. Open-ended contracts, on the other hand, have no fixed end date and can be terminated by either party with the required notice period. Open-ended contracts are the most common type of employment contract in Germany and are typically used for permanent positions.

Key Terms and Conditions of Employment Contracts

Employment contracts in Germany must include certain key terms and conditions, such as:

  1. Start date and end date (if a fixed-term contract)
  2. Position and job duties
  3. Working hours and break times
  4. Salary and benefits, including any bonuses or incentives
  5. Holiday entitlement
  6. Notice period required for termination
  7. Confidentiality and non-compete clauses, if applicable
  8. Severance pay and termination conditions, if applicable

It's important to review your employment contract carefully before signing to ensure that you understand all the terms and conditions. If you have any questions or concerns, you should speak to your employer or seek advice from a legal professional.

Rights and Obligations of Employees in Germany

As an employee in Germany, you have certain rights and obligations that are set out in your employment contract and by law. These include:

  1. Working hours: In Germany, the maximum working week is 48 hours. However, most employees work around 40 hours per week. Overtime is generally only allowed in exceptional circumstances and must be compensated with additional pay or time off in lieu.
  2. Holiday entitlement: All employees in Germany are entitled to a minimum of 24 days' paid holiday per year. However, many employers offer more than this, and it is not uncommon for employees to have up to 30 days' holiday per year.
  3. Notice period: Both employees and employers are required to provide notice when terminating an employment contract. The notice period required will depend on the length of employment and the terms of the contract.
  4. Confidentiality and non-compete clauses: Employment contracts may include confidentiality and non-compete clauses, which restrict an employee's ability to work for a competitor or disclose confidential information.
  5. Severance pay: In certain circumstances, employees may be entitled to severance pay when their employment is terminated. This is typically the case when an employee has worked for a company for a certain period of time.

It's important to note that employment contracts in Germany are subject to specific regulations and requirements, and failure to comply with these regulations can result in legal action and fines. It's recommended that you seek advice from an experienced employment lawyer or consultant to ensure that your employment contract complies with all the necessary regulations and that your rights are protected.

Key Questions Answered About German Employment Contracts

What is an employment contract in Germany?

An employment contract in Germany is a legal agreement between an employer and an employee outlining the terms and conditions of employment. It specifies the duties, rights, and obligations of both parties. It's mandatory for any employment relationship in Germany.

What are the typical elements included in a German employment contract?

A German employment contract typically includes the names of the employer and employee, the start date of the employment, job description, place of work, working hours, salary details, holiday entitlement, notice period, and any other special conditions. It's also standard to reference collective bargaining agreements or works council agreements if they apply.

How can I terminate my employment contract in Germany?

In general, you can terminate your employment contract by giving a notice in writing to your employer. The notice period is usually defined in your contract or by collective agreements. If there is no specified notice period, the statutory notice period is four weeks to the 15th or the end of a calendar month.

What rights and obligations do I have under a German employment contract?

As an employee, you have the right to receive your agreed upon salary, the right to a safe and healthy working environment, the right to take your annual leave, and the right to not be discriminated against, among others. Your obligations typically include performing the tasks assigned to you according to your job description, adhering to company policies, and maintaining confidentiality of company information.

Can I negotiate the terms of my employment contract in Germany?

Yes, certain terms of your employment contract can be negotiated, such as your salary, working hours, and specific job responsibilities. However, some aspects are fixed by law or collective agreements, such as minimum wage rates, maximum working hours, and minimum holiday entitlements. It's always advised to thoroughly review the contract and seek legal advice if needed before signing.


Employment contracts in Germany are an essential part of working in the country, and it's crucial to understand your rights and obligations as an employee. By familiarizing yourself with the key terms and conditions of employment contracts in Germany, you can understand your legal rights and obligations, and ensure that your employment is both successful and legally secure. Here are some more details about key terms and conditions of employment contracts in Germany.

Get Connected With The Right Health Insurance Provider
Get your free Quote today!
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
arrow up