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Permanent Employment Contract Template for Germany

A comprehensive employment agreement governed by German law that establishes a permanent employment relationship between an employer and employee. This contract complies with German labor law requirements, including the German Civil Code (BGB), Working Hours Act, and Federal Vacation Act. It contains mandatory provisions regarding working hours, remuneration, leave entitlements, notice periods, and data protection under GDPR, while also addressing specific terms of employment such as role responsibilities, workplace location, and company policies. The document serves as a legally binding agreement that protects both parties' interests while ensuring compliance with German employment regulations.

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What is a Permanent Employment Contract?

The Permanent Employment Contract is a fundamental legal document used in Germany to establish an ongoing employment relationship between an employer and employee. It is required whenever a company hires an employee on a permanent basis in Germany, regardless of the organization's size or sector. The contract must comply with various German labor laws, including the Nachweisgesetz (Documentation Act), which mandates written documentation of essential employment terms. This document serves multiple purposes: it defines the employment relationship's key terms, ensures legal compliance, protects both parties' rights and obligations, and provides clear reference for workplace expectations. The contract includes mandatory elements required by German law while allowing flexibility to accommodate specific role requirements, industry standards, and company policies.

What sections should be included in a Permanent Employment Contract?

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, role description, and primary responsibilities

5. Commencement and Duration: Start date and confirmation of permanent nature of 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 provisions

9. Remuneration: Base salary, payment schedule, and any guaranteed bonuses

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

11. Sick Leave and Continued Payment: Sick pay entitlements and notification requirements

12. Notice Periods: Notice periods for termination by either party

13. Confidentiality: Obligations regarding company confidential information

14. Data Protection: GDPR compliance and handling of personal data

15. Governing Law: Confirmation of German law application

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

1. Variable Compensation: Details of bonus schemes, commission structures, or other variable pay elements - include for sales roles or management positions

2. Company Car: Terms of company car provision - include when offering company vehicle

3. Non-Competition: Post-contractual non-compete provisions - typically for senior roles or roles with access to sensitive information

4. Intellectual Property: IP rights assignment - important for creative or technical roles

5. Remote Work: Provisions for working from home or remote locations - include if offering flexible working arrangements

6. Training Obligations: Mandatory training requirements and cost reimbursement - include for roles requiring specific certifications

7. Stock Options/Employee Benefits: Details of equity participation or special benefits - include if offering company shares or special benefit packages

8. Travel Requirements: Business travel expectations and compensation - include for roles involving regular travel

9. Collective Agreements: Reference to applicable collective bargaining agreements - include if company is bound by such agreements

What schedules should be included in a Permanent Employment Contract?

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

2. Compensation Structure: Detailed breakdown of salary components and benefits

3. Company Policies: Key workplace policies including IT usage, expense claims, etc.

4. Code of Conduct: Company's code of conduct and ethical guidelines

5. Benefits Overview: Detailed description of all employee benefits and eligibility criteria

6. Data Privacy Notice: Detailed information about personal data processing as required by GDPR

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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