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Expat Employment Contract Template for Germany

A comprehensive employment agreement governed by German law, specifically designed for expatriate workers being employed in Germany or German employees being posted abroad. This contract addresses both standard employment terms required under German labor law and specific expatriate provisions, including relocation support, tax equalization, and international benefits. The document ensures compliance with German employment regulations, social security requirements, and relevant EU directives while providing clear terms for international assignments, including provisions for repatriation and cross-border employment matters.

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What is a Expat Employment Contract?

The Expat Employment Contract is essential for organizations managing international assignments involving German employment relationships. It is used when employing foreign nationals in Germany or sending German employees abroad, ensuring compliance with German labor law requirements while addressing the complexities of international assignments. This document type is particularly important given Germany's position as a major global business hub and the strict requirements of German employment law. The contract covers crucial aspects such as employment terms, remuneration, benefits, tax equalization, social security arrangements, and repatriation terms, while ensuring alignment with German statutory requirements and EU regulations. It is designed to protect both employer and employee interests while providing clear guidelines for the international assignment.

What sections should be included in a Expat Employment Contract?

1. Parties: Identification of the employer and employee, including their full legal names and addresses

2. Background: Brief context of the employment relationship, including the basis for the expatriate assignment

3. Definitions: Key terms used throughout the contract, including 'Host Country', 'Home Country', 'Assignment Period', etc.

4. Position and Duties: Job title, role description, reporting lines, and key responsibilities

5. Term and Location: Duration of the assignment, location of work, and any provisions for extension or early termination

6. Working Hours and Leave: Standard working hours, overtime provisions, annual leave entitlement, and public holidays

7. Remuneration and Benefits: Base salary, currency, payment method, bonus schemes, and additional expatriate benefits

8. Tax and Social Security: Tax equalization policies, social security arrangements, and related obligations

9. Relocation and Housing: Relocation assistance, housing allowance, and related support services

10. Insurance Coverage: Health insurance, accident insurance, and other required insurance coverage

11. Repatriation: Terms and conditions for return to home country, including timing and expenses

12. Termination: Grounds for termination, notice periods, and consequences of early termination

13. Confidentiality: Protection of company information and trade secrets

14. Data Protection: Handling of personal data in compliance with GDPR and local regulations

15. Governing Law: Specification of German law as governing law and jurisdiction

16. Entire Agreement: Integration clause and relationship to other agreements

What sections are optional to include in a Expat Employment Contract?

1. Dual Employment: Required when the employee maintains employment relationships with both home and host country entities

2. Education Allowance: Include when providing support for expatriate children's education

3. Spouse Support: Include when offering assistance for spouse employment or integration

4. Emergency Evacuation: Include for assignments in politically unstable regions

5. Non-Competition: Include when requiring post-employment restrictions (subject to German law limitations)

6. Language Requirements: Include when specific language proficiency is required for the role

7. Cross-Cultural Training: Include when providing cultural adaptation support

8. Home Leave: Include when offering periodic paid trips to the home country

What schedules should be included in a Expat Employment Contract?

1. Schedule 1: Compensation Details: Detailed breakdown of salary components, allowances, and benefits

2. Schedule 2: Tax Equalization Policy: Detailed policy on tax treatment and calculations

3. Schedule 3: Relocation Package: Detailed list of relocation benefits and entitlements

4. Schedule 4: Insurance Coverage Details: Specific insurance policies and coverage levels

5. Schedule 5: Job Description: Detailed description of role, responsibilities, and objectives

6. Appendix A: Company Policies: Key company policies applicable during the assignment

7. Appendix B: Emergency Contacts: List of emergency contacts in both home and host countries

8. Appendix C: Required Permits: List of necessary work permits, visas, and registrations

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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