The Individual Employment Contract is a fundamental document required for any employment relationship in Germany. It serves as the primary agreement between an employer and employee, outlining the essential terms and conditions of employment as required by German law. This document is mandatory under the Documentation Act (Nachweisgesetz) and must comply with various German labor regulations, including the German Civil Code (BGB), Working Hours Act, and Federal Leave Act. The contract should be used when hiring any new employee in Germany, whether for permanent or fixed-term positions, and must be provided to the employee within one month of starting employment. It includes crucial information about the position, compensation, working hours, leave entitlements, and other terms that govern the employment relationship.
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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 basis for 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 type of contract (indefinite or fixed-term)
6. Probationary Period: Length and terms of the probationary period
7. Working Hours: Regular working hours, break times, and overtime provisions
8. Place of Work: Primary workplace location and any mobility requirements
9. Remuneration: Base salary, payment schedule, and other guaranteed compensation
10. Leave Entitlement: Annual leave, public holidays, and other time off provisions
11. Sick Pay: Sick leave and continued payment during illness
12. Notice Periods: Notice requirements for termination by either party
13. Confidentiality: Protection of company secrets and confidential information
14. Data Protection: Handling of personal data under GDPR and German data protection laws
15. Governing Law: Confirmation of German law application and jurisdiction
1. Bonus Arrangements: Details of any variable compensation, used when offering performance-based bonuses
2. Company Car: Terms for provision and use of a company car, if applicable
3. Mobile Work: Provisions for remote work or home office arrangements
4. Non-Competition: Post-contractual non-compete clauses, if required (must include compensation)
5. Inventions and IP Rights: Relevant for positions involving creative or technical work
6. Training Obligations: Required when specific training is provided with repayment clauses
7. Stock Options: For positions including company share or option schemes
8. International Assignment: For roles involving work in multiple countries
9. Sales Commission: For sales positions with commission-based compensation
1. Job Description: Detailed description of role, responsibilities, and reporting lines
2. Compensation Details: Breakdown of salary components and benefits
3. Company Policies: Reference to applicable workplace policies and procedures
4. Bonus Scheme Rules: Detailed rules and calculations for variable compensation
5. IT Usage Policy: Rules for use of company IT systems and equipment
6. Company Car Policy: Detailed rules for company car usage if applicable
7. Travel Policy: Rules and procedures for business travel
8. Working Time Agreement: Detailed working time arrangements including flextime if applicable
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