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Outsourced Employee Contract Template for Germany

This document is a comprehensive employment agreement governed by German law, specifically designed for outsourced employment arrangements. It establishes the three-way relationship between an employee, an outsourcing agency (as the formal employer), and a client company where the services will be performed. The agreement ensures compliance with German labor regulations, particularly the Arbeitnehmerüberlassungsgesetz (AÜG), while defining the terms of employment, scope of services, remuneration, and respective obligations of all parties involved. It includes necessary provisions for data protection under GDPR, social security requirements, and specific German labor law protections.

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What is a Outsourced Employee Contract?

The Outsourced Employee Contract is essential for businesses operating in Germany that utilize external workforce through outsourcing arrangements. This document is specifically designed to comply with German labor laws, including the Arbeitnehmerüberlassungsgesetz (AÜG), which regulates temporary employment and labor leasing. It should be used whenever an employee is hired by an outsourcing agency for assignment to a client company. The contract covers crucial elements such as employment terms, assignment details, remuneration, working hours, leave entitlements, and data protection requirements under GDPR. It also addresses the complex three-way relationship between the employee, outsourcing agency, and client company, ensuring clear delineation of rights and responsibilities while maintaining compliance with German employment protection standards and social security obligations.

What sections should be included in a Outsourced Employee Contract?

1. Parties: Identification of the contracting parties: the employee, the outsourcing agency (employer), and the client company

2. Background: Context of the agreement and the basis for the outsourcing arrangement

3. Definitions: Key terms used throughout the agreement, including 'Client Company', 'Assignment', 'Services', etc.

4. Scope of Employment: Details of the position, responsibilities, and nature of services to be provided

5. Duration and Assignment: Term of employment and specific details about assignment to client company, including duration limits under AÜG

6. Place of Work: Primary work location and any flexibility or mobility requirements

7. Working Hours: Regular working hours, overtime provisions, and break requirements as per ArbZG

8. Remuneration: Salary, payment terms, bonuses, and any client company-specific allowances

9. Leave Entitlements: Vacation, sick leave, and other types of leave as per German law

10. Social Security and Insurance: Details of social security contributions and insurance coverage

11. Confidentiality: Obligations regarding confidential information of both employer and client company

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

13. Reporting Structure: Clarity on reporting lines between agency and client company

14. Termination: Notice periods and termination provisions compliant with German law

15. Post-Termination Obligations: Return of property and ongoing confidentiality obligations

16. Governing Law: Confirmation of German law application and jurisdiction

What sections are optional to include in a Outsourced Employee Contract?

1. Mobility Clause: Required if the role involves regular travel or potential relocation

2. Non-Competition: Include if restricting work with competitors during or after employment

3. Training Provisions: Include if specific training requirements or cost recovery provisions apply

4. Intellectual Property: Required if role involves creation of IP or creative work

5. Company Car: Include if a company vehicle is provided

6. Home Office Arrangements: Include if remote work is permitted or required

7. Performance Bonus Scheme: Include if performance-based compensation applies

8. Client-Specific Requirements: Include if client has specific compliance or procedural requirements

What schedules should be included in a Outsourced Employee Contract?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and required qualifications

2. Schedule 2 - Remuneration Details: Breakdown of salary components, bonuses, and benefits

3. Schedule 3 - Client Company Policies: Relevant policies and procedures of the client company that apply to the employee

4. Schedule 4 - Data Protection Policy: Detailed GDPR compliance requirements and data handling procedures

5. Schedule 5 - Health and Safety Guidelines: Specific health and safety requirements for the workplace

6. Appendix A - Equipment List: List of any equipment provided by either the agency or client company

7. Appendix B - Assigned Location Details: Specific information about the work location and facilities

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Germany

Publisher

Ƶ

Cost

Free to use

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