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Employment contract

Arbeitab 9 J.
The legal basis of your employment: salary, working hours, holidays, notice period, job duties. Always read it carefully before signing!

The employment contract (Arbeitsvertrag) is the legal basis of your employment – it sets out the rights and obligations of employer and employee.

What must be included (German Evidence Act, tightened since August 2022):

• Name and address of both parties
• Start date (and end date if fixed-term)
• Job description
• Place of work
• Working hours (hours/week, distribution)
• Pay (gross wage, due date)
• Holidays (at least 20 days with a 5-day week)
• Notice periods
• Reference to the collective agreement (if applicable)

Fixed-term vs. permanent:

• Fixed-term: approx. 38% of all new hires – max. 2 years without objective reason, max. 3 extensions
• Permanent: the "gold standard" – important for creditworthiness and rental contracts
• 92% of all employees have a permanent contract

Probationary period:

• Maximum 6 months
• Termination with only 2 weeks' notice (without giving reasons)
• After that: the Protection Against Dismissal Act applies (from 10 employees)

Tip: have your employment contract checked by a specialist lawyer or the works council BEFORE signing. Cost: €100–300. Can save you thousands of euros later.

Did you know? Around 45% of all employment contracts in Germany start out as fixed-term. A permanent contract is the gold standard – and the key to cheap loans.
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