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Employee Partnership Agreement for Germany

Employee Partnership Agreement Template for Germany

A German Employee Partnership Agreement (Mitarbeiter-Partnerschaftsvertrag) is a comprehensive legal document that establishes a dual relationship between an individual and a company, combining elements of both employment and partnership. Governed by German law, particularly the German Civil Code (BGB) and Commercial Code (HGB), this agreement outlines the terms of employment, partnership rights and obligations, profit-sharing arrangements, and governance participation. The document addresses specific German legal requirements regarding employment protection, social security obligations, and partnership structures while ensuring compliance with German tax regulations and corporate governance standards.

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What is a Employee Partnership Agreement?

The Employee Partnership Agreement (Mitarbeiter-Partnerschaftsvertrag) is utilized when a company wishes to offer key employees a stake in the business while maintaining their employment status under German law. This hybrid agreement is particularly common in professional services firms, consulting companies, and knowledge-based industries where employee retention and long-term commitment are crucial. The document combines elements of standard German employment contracts with partnership rights and obligations, addressing areas such as profit sharing, voting rights, capital contributions, and exit provisions. It must comply with German employment law, partnership regulations, tax legislation, and social security requirements. The agreement is typically used for senior professionals or key employees who have demonstrated significant value to the organization and are being offered an opportunity to participate in ownership and profits while maintaining their employee status and associated protections under German law.

What sections should be included in a Employee Partnership Agreement?

1. Parties: Identification of the contracting parties: the company, existing partners, and the employee-partner

2. Background: Context of the agreement, including the company's structure and the purpose of creating an employee-partnership relationship

3. Definitions: Key terms used throughout the agreement, including specific German legal terminology

4. Employment Terms: Core employment conditions including role, responsibilities, working hours, and location

5. Partnership Terms: Terms of partnership including capital contribution, profit sharing, and voting rights

6. Remuneration and Benefits: Salary, bonus structure, partnership profit distribution, and benefits package

7. Intellectual Property Rights: Assignment and protection of IP rights, in accordance with German Employee Invention Act

8. Confidentiality: Non-disclosure obligations regarding company and partnership information

9. Non-Competition and Non-Solicitation: Restrictions during and after the agreement term, compliant with German competition law

10. Term and Termination: Duration of the agreement and circumstances for termination of both employment and partnership

11. Effects of Termination: Consequences of termination on both employment and partnership rights

12. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction

13. General Provisions: Standard clauses including severability, entire agreement, and amendments

What sections are optional to include in a Employee Partnership Agreement?

1. Management Rights and Duties: Required if the employee-partner will have management responsibilities

2. International Work Provisions: Required if the role involves work across multiple jurisdictions

3. Works Council Provisions: Required if the company has a works council (Betriebsrat)

4. Training and Development: Optional section detailing professional development opportunities and requirements

5. Share Option Scheme: Required if the partnership includes share options rather than direct partnership rights

6. Retirement and Succession: Optional section for planning partnership transition upon retirement

7. Alternative Dispute Resolution: Optional section establishing mediation or arbitration procedures

What schedules should be included in a Employee Partnership Agreement?

1. Schedule 1 - Position Description: Detailed description of the employee-partner's role and responsibilities

2. Schedule 2 - Remuneration Structure: Detailed breakdown of salary, bonuses, and profit-sharing calculations

3. Schedule 3 - Partnership Capital: Details of capital contribution and partnership interest valuation

4. Schedule 4 - Company Policies: Key company policies applicable to the employee-partner

5. Schedule 5 - Intellectual Property Register: List of existing IP and provisions for new IP creation

6. Schedule 6 - Benefits Package: Detailed description of all employment and partnership benefits

7. Appendix A - Partnership Agreement: Copy of or reference to the main partnership agreement

8. Appendix B - Company Structure: Organization chart and ownership structure

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 | Serial Founder & Legal AI Author

Jurisdiction

Germany

Cost

Free to use
Relevant legal definitions








































Clauses










































Relevant Industries

Professional Services

Legal Services

Consulting

Financial Services

Technology

Architecture

Engineering

Healthcare

Accounting

Marketing and Advertising

Software Development

Management Consulting

Real Estate

Creative Industries

Research and Development

Relevant Teams

Human Resources

Legal

Finance

Senior Management

Operations

Professional Services

Consulting

Research & Development

Business Development

Technical Services

Creative Services

Client Services

Strategy

Product Development

Relevant Roles

Senior Consultant

Managing Director

Principal Architect

Senior Partner

Department Head

Technical Director

Senior Manager

Practice Leader

Chief Engineer

Executive Director

Senior Associate

Regional Manager

Project Director

Senior Designer

Lead Developer

Senior Advisor

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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