Understand Your German Work Contract

A German employment contract can be several pages long and contain unfamiliar legal terms. Read every section before signing, even if you have already accepted the job verbally.

Check the salary, working hours, probation period and notice period first. You should also understand the rules for overtime, holidays, remote work and ending the contract.

Basic information

Make sure the contract correctly states:

  • Your full name and address
  • Employer’s legal name and address
  • Job title and responsibilities
  • Place of work
  • Starting date
  • Contract duration
  • Weekly working hours
  • Salary and payment date
  • Holiday allowance
  • Probation period
  • Notice period

The job title and responsibilities should match what was discussed during the interview. Be careful with clauses that allow the employer to assign you almost any type of work or move you to another location.

Germany’s Nachweisgesetz requires employers to document the essential conditions of employment.

Check whether the contract is permanent or fixed-term

A permanent contract is called an unbefristeter Arbeitsvertrag. It continues until the employee or employer ends it.

A fixed-term contract is called a befristeter Arbeitsvertrag. It normally ends automatically on the date written in the contract.

Example:

Das Arbeitsverhältnis beginnt am 1. Oktober 2026 und wird auf unbestimmte Zeit geschlossen.

This means the employment starts on 1 October 2026 and is permanent.

A fixed-term contract may say:

Das Arbeitsverhältnis beginnt am 1. Oktober 2026 und endet am 30. September 2027.

Check whether a fixed-term contract can be terminated before its end date. Under Section 15 of the German Part-Time and Fixed-Term Employment Act, ordinary termination of a fixed-term contract is generally possible only if the contract or an applicable collective agreement allows it.

Understand your salary

Your contract normally states your gross salary, or Bruttogehalt. This is the amount before income tax and social insurance contributions are deducted.

For example:

The employee receives a gross monthly salary of €4,000.

This does not mean that €4,000 will arrive in your bank account. Your net salary depends on factors such as:

  • Tax class
  • Health insurance
  • Pension contributions
  • Unemployment insurance
  • Long-term care insurance
  • Church tax, when applicable
  • Children and family situation

Check whether the contract gives a monthly or annual salary.

A monthly gross salary of €4,000 equals a gross annual base salary of €48,000 if it is paid 12 times per year.

Read our guide to salaries in Germany to estimate your net income.

Check bonuses and additional payments

Your total compensation may include:

  • Performance bonus
  • Annual bonus
  • Christmas bonus, or Weihnachtsgeld
  • Holiday bonus, or Urlaubsgeld
  • Commission
  • Shift allowance
  • Weekend or night-work allowance
  • Company pension
  • Public transport subsidy
  • Company car
  • Relocation support

Check whether a bonus is guaranteed or voluntary. Phrases such as freiwillige Leistung may mean that the employer does not guarantee the same payment in future years.

If a bonus was promised during the interview, make sure the written contract or another binding document describes:

  • The amount or calculation method
  • Performance targets
  • Payment date
  • Conditions for receiving it
  • What happens if you leave during the year

Do not rely only on a verbal promise.

Check the payment date

The contract should state when your salary is paid. Common arrangements include payment at the end of the month or by a specific day of the following month.

For example:

The salary is paid on the last banking day of each month.

Also check whether the employer pays your salary 12 or more times per year. Christmas and holiday payments are not automatic unless they result from the contract, a collective agreement, a works agreement or established company practice.

Check your working hours

A full-time position in Germany commonly involves around 38 to 40 hours per week, but the contract determines your normal working time.

Check:

  • Weekly working hours
  • Normal start and finishing times
  • Number of working days
  • Break arrangements
  • Flexible working hours
  • Core working hours
  • Shift requirements
  • Weekend or public-holiday work
  • Time-recording system

The German Working Time Act generally limits working time to eight hours per working day. It can be extended to ten hours if the required average is restored within the statutory compensation period. Special rules and exceptions can apply to certain industries and collective agreements.

Required breaks generally include:

  • At least 30 minutes when working more than six and up to nine hours
  • At least 45 minutes when working more than nine hours

Breaks usually do not count as paid working time unless the contract, collective agreement or employer provides otherwise.

Understand overtime rules

Look for the words Überstunden or Mehrarbeit.

The contract should explain:

  • When overtime can be required
  • Who must approve it
  • How working time is recorded
  • Whether overtime is paid
  • Whether you receive time off instead
  • Whether some overtime is included in the salary

Be careful with broad clauses claiming that all overtime is included in the salary. Ask the employer to clarify how many hours are covered and what happens after that limit.

A clearer clause might state:

Up to five approved overtime hours per month are included in the gross salary. Additional approved overtime is compensated with paid time off.

Do not regularly work undocumented overtime. Record your hours according to the company’s system and keep your own notes if necessary.

Check remote-work arrangements

Working from home is not automatically guaranteed just because it was discussed during the interview.

If remote or hybrid work matters to you, check whether the contract or a separate agreement states:

  • Number of remote days
  • Required office days
  • Approved work location
  • Working from another German state
  • Working temporarily from another country
  • Equipment provided
  • Internet or home-office allowance
  • Data protection requirements
  • Whether the employer can change the policy

A company policy can sometimes be changed more easily than an individual contractual right. Ask whether remote work is contractually guaranteed or based only on the employer’s current policy.

Understand the probation period

The probation period is called Probezeit. A six-month probation period is common, but it is not automatic and must be agreed.

During an agreed probation period of no more than six months, the statutory notice period is generally two weeks under Section 622 of the German Civil Code. A collective agreement can provide different rules.

Example:

The first six months of employment are considered a probation period. During this period, either party may terminate the employment relationship with two weeks’ notice.

The probation period does not mean that you have no employment rights. Rules concerning salary, working time, holidays, sick leave and protection against discrimination still apply.

For fixed-term contracts, the probation period must be proportionate to the expected contract duration and type of work.

Check the notice period

The notice period is called Kündigungsfrist. It determines how early you or the employer must give notice to end the employment relationship.

Outside an agreed probation period, the basic statutory notice period for employees is generally four weeks to the 15th or the end of a calendar month.

A contract may provide a longer period, such as:

Three months to the end of a calendar quarter.

A longer notice period offers more security, but it can also delay your move to another job.

Check:

  • Notice period during probation
  • Notice period after probation
  • Whether the same period applies to both parties
  • Whether a collective agreement applies
  • Whether notice is possible only at the end of a month or quarter

The employer’s statutory notice period can become longer based on the employee’s length of service. Different provisions may apply under a collective agreement.

A termination notice or termination agreement generally requires written form under Section 623 of the German Civil Code. An ordinary email or message is not sufficient.

Check your holiday allowance

The contract should state the number of paid holiday days you receive each year.

Germany’s statutory minimum is 24 working days based on a six-day working week. For someone who works five days per week, this normally corresponds to 20 days of statutory holiday. Many employers offer 25 to 30 days.

Check whether the contract separates:

  • Statutory holiday
  • Additional contractual holiday

This distinction can matter when holiday days expire, when you are sick or when employment ends.

Also check:

  • Whether holidays are calculated by calendar year
  • Rules for the first and last year of employment
  • Whether unused days can be carried forward
  • Whether the company has compulsory closing periods
  • How far in advance leave must be requested

Sick leave and continued salary

The contract may explain how and when you must report an illness.

Employees must inform the employer promptly that they are unable to work and indicate the expected duration. The employer may require medical confirmation earlier than the general statutory deadline.

Eligible employees are generally entitled to continued salary payments from the employer for up to six weeks for the same illness under the Continued Remuneration Act.

Check the employer’s internal procedure for:

  • Reporting sickness
  • Contacting your manager
  • Medical certificates
  • Electronic sick notes
  • Illness while abroad
  • Illness during holidays

Check the place of work and travel requirements

The contract should identify your normal place of work. Pay attention to clauses allowing work at different offices, customer sites or locations.

Check whether the role requires:

  • Regular business travel
  • Overnight stays
  • Work at customer locations
  • Relocation within Germany
  • International assignments
  • Use of a private car
  • A valid driving licence

If travel is expected, ask how travel time, accommodation and expenses are handled.

Check collective agreements and company agreements

Some employment conditions come from a collective agreement, or Tarifvertrag, rather than the individual contract.

A collective agreement can regulate:

  • Salary groups
  • Salary increases
  • Working hours
  • Overtime
  • Holiday allowance
  • Christmas payments
  • Notice periods
  • Special leave

Works agreements, or Betriebsvereinbarungen, may regulate flexible hours, remote work, bonuses and workplace procedures.

Ask which collective agreement and works agreements apply to your position and where you can read them.

Look for additional clauses

Secondary employment

A Nebentätigkeit clause may require you to inform the employer or obtain approval before taking another job or running a business.

The employer cannot necessarily prohibit every outside activity, but restrictions may apply if it competes with the employer, affects your performance or violates working-time rules.

Confidentiality

A confidentiality clause may prevent you from sharing business secrets, customer information and internal documents. Check that it does not attempt to treat all general professional knowledge as confidential.

Intellectual property

For technical, creative and research positions, check who owns inventions, software, designs and other work created during employment.

Non-compete clause

A post-contractual non-compete clause may restrict where you can work after leaving. Such clauses have specific legal requirements and can significantly affect your next career move. Get professional advice before accepting a broad restriction.

Repayment clauses

Some contracts require employees to repay training, relocation costs or bonuses if they leave within a certain period. Check the amount, repayment period and circumstances carefully.

Exclusion periods

Look for Ausschlussfrist or Verfallfrist. These clauses may require you to claim unpaid salary, overtime or other entitlements within a short period. Missing the deadline could affect your ability to enforce the claim.

Do not sign immediately if something is unclear

It is reasonable to ask for time to review a contract. You can also request changes before signing.

Ask questions such as:

  • Is the salary fixed or partly performance-based?
  • How is overtime compensated?
  • Is remote work contractually guaranteed?
  • Which collective agreement applies?
  • Can the employer change my work location?
  • Is the bonus guaranteed?
  • What is the notice period after probation?
  • Are there repayment obligations?
  • Which promises from the interview are included in writing?

If an important clause is unclear, ask the employer to explain it in writing. For major concerns, speak to an employment lawyer, trade union or employee advice centre.

Work contract checklist

Before signing, confirm that:

  • Your name and the employer’s legal name are correct.
  • The starting date is correct.
  • The position and responsibilities match the job offer.
  • You know whether the contract is permanent or fixed-term.
  • The gross salary and payment date are stated.
  • Bonus conditions are clear.
  • Weekly working hours are stated.
  • Overtime rules are understandable.
  • Remote-work arrangements are written down.
  • The probation period is clear.
  • You understand the notice period.
  • Holiday entitlement is stated.
  • The normal place of work is correct.
  • Travel requirements are clear.
  • You know which collective agreement applies.
  • Secondary employment rules are reasonable.
  • You have checked repayment and exclusion clauses.
  • Important promises are included in writing.
  • You have received a complete copy of the signed contract.

Final advice

A job title and salary are only part of an employment offer. Working hours, overtime, location, probation and notice periods can have just as much effect on your daily life.

Read the complete contract, mark anything you do not understand and ask questions before signing. It is easier to clarify or negotiate a condition before the employment relationship begins than to dispute it later.

LeeLink provides general information and not individual legal advice. Employment contracts can contain different rules based on the industry, collective agreement and personal circumstances.

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Last updated: August 2026