Your German employment contract, clause by clause
Probezeit, Kündigungsfrist, Urlaubsanspruch, Überstunden: what the standard terms mean, and the statutory minimums a contract can't go below.
The clauses
What each term actually means
Probezeit (Probation period)
Up to six months by law. During it, either side can normally end the contract with two weeks' notice, unless a collective agreement says otherwise. On a fixed-term contract the probation has to be proportionate to the length of the job. It isn't a different job: your pay and holiday run as agreed.
Kündigungsfrist (Notice period)
After probation, the statutory minimum is four weeks to the 15th or to the end of a calendar month. The employer's notice grows the longer you've worked there. Contracts and collective agreements often set longer periods, but yours can never be longer than the employer's.
Urlaubsanspruch (Holiday entitlement)
The statutory minimum is 24 working days on a six-day week, which is 20 days on a normal five-day week (less pro rata if you work fewer days). Most employers offer more, and 25 to 30 days is common, but anything above the minimum has to be in your contract.
Arbeitszeit (Working hours)
Weekly hours, and whether the job is Vollzeit or Teilzeit. The Working Hours Act caps the normal day at eight hours, extendable to ten if the average stays within eight over the balancing period.
Überstunden (Overtime)
Look for whether overtime is paid, compensated with time off, or declared 'included in the salary', and when you can be asked to work it. Blanket all-inclusive clauses are common but not automatically valid; this is the clause most worth reading twice.
Vergütung (Pay)
Gross annual or monthly salary, plus any 13th month, bonus or allowances, and whether they're guaranteed or voluntary (freiwillig). Gross isn't take-home, so work out your net pay before you negotiate.
Befristung (Fixed term)
A contract can be fixed-term with an objective reason, or without one for up to two years with a new employer. The fixed term has to be agreed in writing before you start. You can only give ordinary notice before the end date if the contract or a collective agreement allows it.
Tätigkeitsbeschreibung (Job description)
What you are actually hired to do, and where. Watch for broad clauses letting the employer move you to another role or location (Versetzungsklausel).
Nebentätigkeit (Secondary employment)
Many contracts require written approval for side jobs or freelancing. Relevant if you plan to keep any income stream from home.
Verfallfristen (Limitation clauses)
Deadlines, often three months, for claiming unpaid wages or overtime. Miss the window and the claim can lapse, which is why they matter more than their small print suggests. Note how you have to claim (often in text form) and by when.
Statutory minimums are floors, not defaults: a contract can give you more, but not less. The exception is a collective agreement (Tarifvertrag): where one applies, it can set some rules differently, so ask whether your employer is covered.
Before you sign
Check these, in this order
- Is the start date, job title and place of work exactly what you agreed verbally?
- Probezeit length and the notice period that applies during and after it
- Holiday days, and whether they're above the statutory minimum
- How overtime is handled, in writing
- Whether bonuses are guaranteed or discretionary
- Fixed-term or permanent, and if fixed-term, whether early termination is possible
- Any limitation clause (Verfallfrist) and how long you have to raise claims
- That nothing important lives only in the job ad or an email: if it matters, it belongs in the contract
Common traps
Three clauses people skim past
Overtime 'included in the salary'
Blanket clauses covering unlimited overtime are common in offers but not automatically enforceable. Ask how many hours the salary covers before the first busy quarter.
Discretionary bonuses
A bonus described as freiwillig is a gift, not a claim. If it was part of how the package was sold to you, ask for it to be defined.
Verfallfristen
Short claim deadlines can quietly wipe out unpaid overtime or wages. Note the window the day you sign, not the day you need it.
FAQ
Common questions
Does a German employment contract have to be in writing?
An employment relationship can be agreed verbally, but the employer must give you the essential terms in writing. Since 2025 that can usually be by email or PDF, though some sectors are excluded and you can always ask for a signed paper copy. A fixed term must be agreed in writing. In practice almost everyone signs a written Arbeitsvertrag; never rely on verbal promises for pay, hours or start date.
Can the contract be in English?
Yes, and international employers often use English or bilingual contracts. Check which version is binding. If only the German one is, make sure you genuinely understand it before signing; asking for a translation is reasonable.
Can I negotiate after receiving the contract?
Yes. Between offer and signature is the normal moment to raise salary, holiday days, start date or remote work. Ask in writing, be specific, and make sure whatever you agree ends up in the contract.
What if the contract contradicts what I was told in the interview?
The signed document is what counts, so raise the difference before signing rather than after. Put it in writing and ask for an updated contract or an addendum (Nachtrag). A genuine misunderstanding is usually fixed without drama; if it isn't, get legal advice before you sign.
Who can check my contract for me?
For your own case, a specialist employment lawyer (Fachanwalt für Arbeitsrecht); many offer a fixed-fee first consultation. If the company has a works council (Betriebsrat), it can explain how things work there, and unions advise their members. We explain what clauses mean, but we don't review contracts or give legal advice.
This is general information, not legal advice. Employment law changes and individual cases turn on details. For your own contract, ask a specialist employment lawyer, your works council or your union. Leaving a job later? Our German letter templates cover the formal Kündigung, and Arbeitszeugnis decoded explains the reference you get on the way out.
Statutory sources (German): BGB section 622: notice periods; Nachweisgesetz section 2: documented terms; TzBfG section 15: fixed-term contracts.
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