Germany Employment Guide

Essential Elements of an Employment Contract in Germany

When drafting an employment agreement for Germany, it is mandatory to use either English or German, or a bilingual version. The contract must be in written form and signed by both parties to be legally binding.

To ensure compliance and clarity, the contract should include the following key details:

• Full names of both employer and employee
• Complete addresses of both parties
• Official start date of employment
• End date, if applicable for fixed-term contracts
• Primary work location
• Clear job description and responsibilities
• Total compensation, including all allowances and bonuses
• Specific salary payment dates
• Standard working hours per week
• Annual leave entitlement in days
• Notice period requirements for termination

For instance, SailGlobal ensures all contracts for their international hires in Berlin include these elements to prevent disputes.

Understanding Probation Period Regulations

In Germany, probation periods are not compulsory but are commonly included. For indefinite-term contracts, there is no minimum probation requirement; however, the maximum allowed is six months (180 days).

For fixed-term contracts, the probation period must be at least 50% of the total contract duration. For example, a six-month contract requires a minimum three-month probation. Nevertheless, the probation cannot exceed 180 days, even for longer fixed-term agreements.

Consider a case where a tech startup uses a 12-month contract: the probation would typically be six months, aligning with legal standards while allowing adequate evaluation time.