Employment contract – know your rights, avoid mistakes, secure your claims
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What a legally sound employment contract must contain and when legal advice on employment law is advisable.
The employment contract is the foundation of every employment relationship – and simultaneously the most frequent source of legal disputes between employers and employees. Many employees sign contracts without fully understanding their scope. Rogert & Ulbrich reviews employment contracts for problematic clauses, clarifies minimum legal rights, and represents employees when disputes arise concerning the content or amendments of the contract.
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3Mandatory components of an employment contract
what needs to be regulated
Since the enactment of the Employment Verification Act (NachwG) in its 2022 version, employers are obligated to document the essential terms of employment in writing and provide this document to the employee no later than the first day of work. Employers who fail to comply with this obligation face fines.
The following elements must be included in the employment contract or proof of employment: name and address of the contracting parties, start date of the employment relationship, in the case of fixed-term contracts the agreed duration, the place of work, a brief description of the activity, the composition and amount of remuneration including bonuses and special payments, the agreed working hours, the entitlement to vacation, the notice periods and a reference to applicable collective agreements or company agreements.
Important: A verbal employment contract is generally valid. However, the employer is obligated to document the essential terms in writing. If this documentation is lacking, it can lead to evidentiary problems for the employer in later disputes – which can be advantageous for the employee.
Have you received an employment contract and would like to have it reviewed? Rogert & Ulbrich analyzes the contract and points out weaknesses before you sign.
We will take care of your case – quickly & with commitment.
Probationary period and notice periods
what employees need to know
The probationary period is not a legal vacuum, but it is a phase with significantly simplified termination conditions. According to Section 622 Paragraph 3 of the German Civil Code (BGB), termination during the probationary period is possible with two weeks' notice – by either party. The maximum probationary period is six months.
After the probationary period, the statutory or contractually agreed notice periods apply. The standard statutory notice period according to § 622 of the German Civil Code (BGB) is four weeks to the 15th or the end of the calendar month. This period increases with length of service – after two years to one month to the end of the month, after five years to two months, and so on up to seven months after 20 years.
Many employment contracts contain longer notice periods than legally required – this is permissible as long as the notice period for the employer is not shorter than for the employee. Shorter notice periods than those stipulated by law are only valid in narrowly defined exceptions, such as in sectors covered by collective bargaining agreements for temporary work.
Were you given notice of termination with reference to an ongoing probationary period or a shorter notice period than legally required? Rogert & Ulbrich will review the validity of the termination.
Compensation, overtime and vacation – frequent points of contention
Besides protection against dismissal, remuneration regulations are the most frequently disputed issue in employment law. Typical sources of problems include:
- Overtime clauses: Clauses that declare overtime as "covered by salary" are only valid if the number of overtime hours covered is specifically stated. According to the Federal Labor Court (BAG), an unlimited overtime compensation clause is invalid – overtime not covered must be paid.
- Minimum wage: Since the Minimum Wage Act (MiLoG) came into effect, a statutory minimum wage applies, which is regularly adjusted. This minimum wage cannot be undercut by employment contract. Agreements that effectively result in an hourly wage below the minimum wage are invalid.
- Special payments: Bonuses, Christmas pay, and vacation pay are voluntary benefits provided by the employer if the contract stipulates them. However, if they are paid regularly over several years, a customary practice can develop, establishing an entitlement – even if the contract does not explicitly provide for this.
- Vacation entitlement: The statutory minimum vacation entitlement is 24 working days (§ 3 BUrlG) for a six-day work week, and 20 days for a five-day work week. More vacation time can be agreed upon contractually, but not less. Clauses stipulating that vacation time expires at the end of the year are only valid under strict conditions.
Is your employer not paying overtime or reducing bonuses without reason? Rogert & Ulbrich will review your claims and enforce them.
Problematic contract clauses
what employees should refuse
Many standard employment contracts contain clauses that are either invalid under the law governing standard business terms and conditions (Sections 305 et seq. of the German Civil Code) or unfairly disadvantage employees. Be aware of these risks before you sign.
- Post-contractual non-compete clauses: A post-contractual non-compete clause is only valid if it is limited to a maximum of two years, restricted to the specific field of activity, and the employer pays compensation for the restraint period of at least 50 percent of the last remuneration (Sections 74 et seq. of the German Commercial Code). If the compensation for the restraint period is missing, the clause is unenforceable – the employee can ignore it.
- Repayment clauses: Clauses that require the reimbursement of training or onboarding costs if the employee resigns within certain timeframes are only valid under strict conditions. The duration of the commitment must be proportionate to the benefit provided to the employee.
- Exclusion periods: Clauses that allow claims to expire three or six months after they arise are widespread. They do not apply to minimum wage claims and may be invalid if the limitation period is less than three months.
- Confidentiality clauses: Extensive confidentiality clauses that prevent employees from communicating with authorities or from whistleblowing are incompatible with the Whistleblower Protection Act and may be invalid.
Do you have concerns about a clause in your employment contract? Rogert & Ulbrich reviews the contract and explains what is valid and what is not – before you are bound by it.
Contract amendments and termination with changes
if the employer wants to worsen the conditions
Employers cannot unilaterally change working conditions to the detriment of employees. Mutually agreed changes require the employee's consent – a signature obtained under duress or based on false promises can be challenged.
If the employer cannot implement a change by mutual agreement, they can issue a termination notice with modified terms: They terminate the existing employment relationship and simultaneously offer a new contract with the amended conditions. The employee can accept the offer conditionally and simultaneously file a claim for protection against the change.
The labor court then examines whether the change is socially justified. If it is not, the old conditions remain in effect. The deadline for filing a claim against a change in working conditions is three weeks – the same as for a claim against dismissal.
Is your employer planning to cut your salary, relocate your workplace, or significantly change your responsibilities? Don't act without legal advice. Rogert & Ulbrich will review the legal situation and your options.
Dispute over the employment contract
Employment law disputes often arise not only upon termination, but also during the ongoing employment relationship: concerning remuneration, vacation, references, warnings or inadmissible contract clauses.
Rogert & Ulbrich reviews employment contracts before signing, advises on contract negotiations, and enforces existing claims – both out of court and before the labor court. Out-of-court settlements are often faster and more cost-effective than litigation; Rogert & Ulbrich always seeks a negotiated solution first before resorting to legal action.
For many employment law cases: Check whether your legal expenses insurance covers the case. Many policies cover employment law disputes. Rogert & Ulbrich will clarify this at the beginning of the case.
Do you have questions about your employment contract or are you involved in a dispute with your employer? Get in touch and protect your rights.
FAQs – Frequently Asked Questions about the Employment Contract
Rogert & Ulbrich – Your lawyers in employment law
Rogert & Ulbrich is a Düsseldorf-based law firm specializing in employment law. Dr. Marco Rogert and Tobias Ulbrich represent employees in unfair dismissal claims, wage disputes, contract reviews, and all other employment law matters. With over 40,000 cases handled and more than 25,000 lawsuits filed, the firm is among the most experienced representatives in employment law.
The firm offers pre-signing contract reviews, advice on severance negotiations, representation in unfair dismissal and termination claims, and support in enforcing compensation claims. Out-of-court settlements are preferred when in the client's best interest. Many cases are handled under legal expenses insurance.
Whether you want to have a contract reviewed or need to actively enforce your rights: Get in touch and secure your claims.
Professional advice & support
We offer you a professional and comprehensive initial consultation in the field of employment law. Take advantage of this opportunity and avoid mistakes.
