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Continuous Contract Of Employment Template for Germany

A German Continuous Contract of Employment (unbefristeter Arbeitsvertrag) is a legally binding agreement that establishes an ongoing employment relationship between an employer and employee under German labor law. This contract complies with the German Civil Code (BGB) and various German labor laws, including the Documentation of Proof Act (Nachweisgesetz). It covers essential employment terms such as position, compensation, working hours, leave entitlements, notice periods, and other mandatory provisions required by German employment legislation. The contract provides a comprehensive framework for long-term employment relationships while ensuring compliance with German employment protection standards and worker rights.

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What is a Continuous Contract Of Employment?

The Continuous Contract of Employment (unbefristeter Arbeitsvertrag) is the standard form of employment agreement in Germany, used when establishing permanent employment relationships. This document is essential for any permanent hire in Germany and must comply with various German labor laws, including the Civil Code (BGB), Protection Against Dismissal Act (K眉ndigungsschutzgesetz), and the Documentation of Proof Act (Nachweisgesetz). It should be used whenever a company hires an employee on a permanent basis in Germany, regardless of the position level. The contract includes mandatory provisions required by German law, such as working hours, probationary period, notice periods, leave entitlements, and data protection clauses. It serves as the foundational document defining the employment relationship and protecting both employer and employee rights under German jurisdiction.

What sections should be included in a Continuous Contract Of Employment?

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Brief context of the employment relationship and reference to any previous agreements

3. Definitions: Key terms used throughout the contract

4. Position and Duties: Job title, role description, and primary responsibilities

5. Commencement and Duration: Start date and nature of the continuous employment relationship

6. Probationary Period: Length of probationary period and applicable notice periods during this time

7. Place of Work: Primary workplace location and any mobility requirements

8. Working Hours: Regular working hours, break times, and overtime arrangements

9. Remuneration: Base salary, payment intervals, and method of payment

10. Benefits and Additional Compensation: Bonuses, allowances, and other benefits

11. Annual Leave: Vacation entitlement and rules for requesting/taking leave

12. Sick Pay: Sick leave entitlement and notification requirements

13. Notice Period: Notice requirements for termination by either party

14. Confidentiality: Obligations regarding company secrets and confidential information

15. Data Protection: Handling of personal data and privacy requirements

16. Governing Law: Confirmation of German law application and jurisdiction

What sections are optional to include in a Continuous Contract Of Employment?

1. Non-Competition: Post-employment competition restrictions, used for senior positions or roles with access to sensitive information

2. Intellectual Property: IP rights assignment, relevant for creative or technical positions

3. Company Car: Terms of company car provision, when applicable

4. Mobile Work Arrangements: Rules for remote work or home office, if applicable

5. Training Requirements: Mandatory training obligations and development programs, if specific to the role

6. Commission Structure: Detailed commission arrangements for sales positions

7. Stock Options: Employee stock option plans for eligible positions

8. International Assignment: Terms for international work assignments

9. Collective Bargaining Agreement: Reference to applicable collective agreements, if relevant

What schedules should be included in a Continuous Contract Of Employment?

1. Schedule 1: Job Description: Detailed description of role, responsibilities, and reporting lines

2. Schedule 2: Bonus Scheme: Detailed bonus calculation rules and targets

3. Schedule 3: Company Policies: Key company policies including IT usage, social media, and workplace conduct

4. Schedule 4: Benefits Summary: Detailed overview of all benefits and eligibility conditions

5. Appendix A: Data Privacy Notice: Detailed information about personal data processing

6. Appendix B: Company Car Policy: Detailed rules for company car usage, if applicable

7. Appendix C: Mobile Work Policy: Detailed rules and requirements for remote work arrangements

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Germany

Document Type

Employment Contract

Cost

Free to use

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