A German employment contract (Arbeitsvertrag) is more than a formality. Germany's labour law — the Bürgerliches Gesetzbuch (BGB), the Arbeitszeitgesetz, and sector-specific collective agreements (Tarifverträge) — creates a web of protections that only work if your contract accurately reflects your role and conditions. Here is what to check.
1. Gross vs Net Salary (Brutto vs Netto)
German employers always quote Brutto (gross). Your net take-home is roughly 60–68% of gross after income tax, solidarity surcharge (if applicable), health insurance (~7.3% employee share), pension insurance (~9.3%), unemployment insurance (~1.3%), and nursing care insurance (~1.7%). Use a tool like brutto-netto-rechner.de to calculate exactly. If your contract shows €50,000 gross, expect approximately €30,000–€33,000 net per year.
2. Probationary Period (Probezeit)
Most contracts include a probationary period of up to 6 months. During Probezeit, either party can terminate with just 2 weeks' notice. After Probezeit, dismissal requires statutory notice periods (4 weeks minimum, increasing with tenure) and must be justified. Check whether your contract specifies the Probezeit duration clearly.
3. Working Hours (Arbeitszeit)
The Arbeitszeitgesetz caps working time at 48 hours per week (10 hours per day, averaged over 6 months). Your contract should specify weekly hours, overtime rules, and how/whether overtime is compensated (time off or pay). Contracts that say 'overtime as required' without compensation caps are worth negotiating.
4. Vacation Entitlement (Urlaubsanspruch)
The legal minimum is 20 days (for a 5-day week), but most employers offer 25–30 days. Check that your contract specifies the number clearly and whether unused vacation carries over. German law requires employers to compensate unused vacation on termination.
5. Notice Period (Kündigungsfrist)
By law, employees have a 4-week notice period during the first 2 years. After that, notice increases with tenure (up to 7 months for employees of 20+ years). Your contract may specify a longer notice period — which is fine for you as an employee, but check that it is symmetric (same for both parties).
6. Place of Work and Remote Work Clause
If you have agreed partial home-office (Homeoffice), ensure it is in the contract. Germany has proposed legislation on remote work rights, but currently these rights only exist if contractually agreed. A verbal agreement is legally valid but very hard to enforce.
7. Collective Agreement Reference (Tarifvertrag)
Many sectors (healthcare, construction, metal, public service) operate under collective bargaining agreements. If your employer is Tarifgebunden (union-bound), your contract will reference the applicable Tarifvertrag. These agreements often provide better conditions than the statutory minimum — check which one applies and what it means for your salary grade.
8. Non-Compete Clause (Wettbewerbsverbot)
German law allows post-employment non-compete clauses, but only if the employer pays at least 50% of your last salary during the restriction period (up to 2 years). A non-compete without compensation is unenforceable. If your contract contains one, check it carefully — especially in fast-moving sectors like IT and pharma.
Need a Contract Review?
Fachkraft Ausland offers a contract review service as part of our relocation package. Our legal team checks every clause, flags discrepancies from the applicable Tarifvertrag, and advises on negotiation points — in English, for free as part of the full placement service.