Signing a German employment contract without reading it carefully is common among international hires. German contracts look similar but contain clauses that don't exist in many other countries — particularly around non-compete obligations, overtime banking, and intellectual property. Take two days to review before signing.
Probation Period (Probezeit)
Most German contracts include a Probezeit of three to six months. During this period, either side can terminate with two weeks' notice (compared to four weeks or more afterward). This is the riskiest time — you have fewer protections. Check: how long is the Probezeit? Can it be extended? (Some contracts include a clause extending probation by the duration of any illness.)
Notice Period After Probation
After probation, German law sets minimum notice periods based on tenure: 4 weeks for the first two years, rising to 7 months after 20 years of service. Your contract may set longer notice periods — this benefits you, not just the employer, since both sides must respect it. Monthly notice periods (Kündigung zum Monatsende) are the German default; quarterly notice periods do appear in management-level contracts.
Overtime
Check whether overtime is included in your salary ("Überstunden sind mit dem Gehalt abgegolten" means all overtime is considered paid by your base salary — common in tech and consulting). If not, the contract should specify an hourly rate or a "Zeitkonto" (time account) for accruing time off. Without a clause, standard law applies: overtime must be compensated.
Salary and Pay Date
Confirm: gross salary (Bruttogehalt), pay date (usually last day of the month or a fixed date), and whether the salary is fixed or includes variable components (Bonus, Prämie). If bonuses appear, check whether they're guaranteed (freiwillig = not guaranteed) or contractually fixed.
Annual Leave
German law guarantees 20 days of annual leave for a five-day work week (24 days for six-day). Most contracts offer 25 to 30 days. Check when the full entitlement kicks in — some contracts say you earn leave pro-rata in the first year, with full entitlement only after six months.
Non-Compete Clause (Wettbewerbsverbot)
Post-employment non-competes in Germany are only valid if the employer pays you at least 50% of your last salary for the entire non-compete period (up to two years maximum). If your contract includes a non-compete without compensation, it's legally invalid — but you should still flag it before signing and clarify in writing.
Intellectual Property
Standard clauses assign all work-related inventions to the employer under the Arbeitnehmererfindungsgesetz. Read these carefully if you have side projects, apps, or creative work — some contracts claim ownership of anything created during your employment, not just on company equipment or time. You can negotiate a carve-out for pre-existing work.
Home Office and Remote Work
Post-2020, many contracts include specific home office clauses. Check: how many days per week are permitted, whether you need prior approval, and who pays for home office equipment. Germany has no law guaranteeing a right to home office (a proposed law stalled in Parliament), so what your contract says is what you get.
Getting Help
The Gewerkschaft (trade union) for your industry offers contract review as a member benefit. DGB (Deutscher Gewerkschaftsbund) member unions include Ver.di (public sector and services), IG Metall (manufacturing and tech), and others. Membership runs €10 to €25 per month and includes legal protection (Rechtsschutz) for employment disputes. Worth it in your first German job.
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