The Individual Work Contract (Arbeitsvertrag) is a mandatory document under German law for establishing an employment relationship between an employer and an employee. It must be provided in writing within one month of employment commencement, as required by the Documentation of Essential Working Conditions Act (Nachweisgesetz). This document is used when hiring new employees or formalizing existing employment relationships in Germany, ensuring compliance with German labor laws, including the German Civil Code (BGB), Working Hours Act, and Federal Leave Act. It serves as the primary reference point for both parties regarding their rights, obligations, and terms of employment, while providing legal certainty and protection for both employer and employee.
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1. Parties: Identification of employer and employee with full legal names and addresses
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the contract
4. Position and Duties: Job title, description of role and responsibilities
5. Start Date and Duration: Commencement date and whether fixed-term or permanent contract
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. Annual Leave: Annual vacation entitlement and rules for requesting/taking leave
11. Sick Pay: Provisions for continued payment during illness
12. Notice Periods: Notice periods for termination by either party
13. Confidentiality: Obligations regarding company secrets and confidential information
14. Data Protection: Handling of employee personal data under GDPR
15. Governing Law: Confirmation of German law application
16. Signatures: Execution section for both parties
1. Bonus Arrangements: Include when performance-related bonuses or commission structures apply
2. Company Car: Include when a company car is provided as part of the employment package
3. Remote Work: Include when remote working arrangements are permitted
4. Non-Competition: Include when post-contractual non-compete obligations apply (requires compensation)
5. Additional Benefits: Include when offering pension contributions, health insurance, or other benefits
6. Training Requirements: Include when specific training or qualifications are required
7. Intellectual Property: Include when employee's work involves creation of IP
8. Secondary Employment: Include when restrictions on additional employment are needed
9. Work Equipment: Include when providing specific work tools or equipment
10. Travel Provisions: Include when role requires regular business travel
1. Job Description: Detailed description of role, responsibilities, and reporting structure
2. Bonus Scheme Rules: Detailed terms of any applicable bonus or commission schemes
3. Company Policies: Reference to or summary of key company policies that form part of the contract
4. Benefits Summary: Detailed description of all benefits and eligibility conditions
5. Data Privacy Notice: Detailed information about personal data processing
6. Company Car Policy: Terms of company car usage if applicable
7. Remote Work Policy: Detailed rules and requirements for remote working if applicable
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