Your German employment contract, clause by clause
Probezeit, Kündigungsfrist, Urlaubsanspruch, Überstunden — what the standard terms mean, and the statutory minimums a contract cannot 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. It is not a different job — your pay and holiday entitlement run as agreed.
Kündigungsfrist — Notice period
After probation, the statutory minimum for employees is four weeks to the 15th or to the end of a calendar month. Contracts and collective agreements often set longer periods, and they must apply equally to both sides.
Urlaubsanspruch — Holiday entitlement
The statutory minimum is 24 working days on a six-day week, which equals 20 days on a normal five-day week. Most employers offer more — 25 to 30 days is common — and anything above the minimum is contractual, not automatic.
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'. 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 are guaranteed or discretionary (freiwillig). Gross is not take-home — check the difference before you negotiate.
Befristung — Fixed term
A contract can be fixed-term with an objective reason, or without one for up to two years in a new employment relationship. Fixed-term contracts normally cannot be terminated early unless the contract says so.
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 in writing. Miss the window and the claim can lapse, which is why they matter more than their small print suggests.
Statutory minimums are floors, not defaults: a contract may always give you more, never less. Collective agreements (Tarifvertrag) can set different rules again — if one applies to your employer, it usually beats the individual contract.
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 are 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. Know what you agreed 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 written-claim deadlines can quietly extinguish 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 — and in practice everyone signs a written Arbeitsvertrag. Never rely on verbal promises for pay, hours or start date; ask for them in the document.
Can the contract be in English?
Yes, and international employers often use English or bilingual contracts. If only a German version is binding, make sure you genuinely understand it before signing — a translation you can read is worth requesting, and reasonable employers provide one.
Can I negotiate after receiving the contract?
Yes. Between offer and signature is the normal moment to raise salary, holiday days, start date or a remote-work arrangement. Ask in writing, keep it specific and friendly — asking is expected and rarely costs you the offer.
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 the correction in writing and ask for an updated contract or an addendum (Nachtrag) — a genuine misunderstanding is usually fixed without drama.
Who can check my contract for me?
For individual legal questions, 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 internal practice, and unions review members' contracts as part of membership. We explain what clauses mean, but we do not give legal advice or review contracts.
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.
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