Your German employment contract (Arbeitsvertrag) is a legally binding document that outlines the terms of your employment. Unlike in some other countries, German contracts are highly detailed and regulated by strong labor laws. Understanding the key clauses is crucial before you sign.
Almost every German contract starts with a probation period, which is legally capped at a maximum of six months. During the Probezeit, the notice period for termination (by either you or the employer) is typically just two weeks. This is a standard clause and not a sign of mistrust. After the probation period ends, the much stronger German employee protection laws kick in.
After the probation period, the statutory minimum notice period is four weeks to the 15th or the end of a calendar month. However, your contract will likely specify a longer period, often three months. This applies to both you and your employer. A three-month notice period is very common for professional roles in Germany and provides significant job security.
The contract will specify your weekly working hours, typically between 38 and 40 hours. It will also mention how overtime (Überstunden) is handled. Some contracts state that a certain amount of overtime is expected and included in the salary, while others may offer compensation through extra pay or time off in lieu (Freizeitausgleich).
The legal minimum paid holiday is 20 days per year for a five-day work week. However, most professional contracts in Germany offer between 27 and 30 days of paid leave per year. This is a significant benefit compared to many other countries.
Some contracts include a post-contractual non-compete clause (nachvertragliches Wettbewerbsverbot), which restricts you from working for a competitor for a certain period (e.g., 1-2 years) after leaving the company. For this to be legally valid, the employer must pay you compensation (Karenzentschädigung) of at least 50% of your last salary for the duration of the non-compete period. If there is no mention of compensation, the clause is often unenforceable.
