Successful career entry

In principle, an employment contract does not necessarily have to be in writing; an oral contract is also legal. However, an oral contract is by no means recommended - neither from the employee's nor the employer's point of view. If there is later a conflict over individual parts of the contract, it may be a case of one statement against another. However, if a corresponding document is drawn up and signed by both parties, a number of general legal regulations must be observed. If, for example, a collective labour agreement is applicable in a particular sector, the relevant provisions will apply. Overall, however, the employer is obliged under the German Act on Evidence (NachG) to set out the key contractual provisions in writing, which must be submitted to the employee no later than one month after the start of the employment relationship.

Despite the principle of contractual freedom that applies in Germany, there are a number of elements that must be included in an employment contract. This starts with the specification of the contracting parties: It is essential that both the employee and the employer are specifically named. The former undertakes to serve his superior by personally performing the contractually agreed services in return for remuneration. Furthermore, it is mandatory to state the exact starting date in order to specify when the corresponding remuneration begins.

To avoid any nasty surprises later on, the contract should list the exact areas of responsibility and activities to be carried out by the employee. As a rule, fairly general formulations are used here in order to exclude the possibility of the later areas of responsibility being restricted too much.

Furthermore, the working hours, which are organised in accordance with the regulations of the Working Hours Act (ArbZG), must not be omitted. According to these regulations, the daily working time may not exceed a maximum of eight hours. Only in special cases is it legal to extend working hours to ten hours, provided that an average of eight hours per day is not exceeded over a six-month period. However, exceptions apply to part-time employees and shift workers, for example.

Only a few career starters are immediately blessed with the preferred permanent employment contract, which only comes to an end with a corresponding notice of termination. A fixed-term employment contract is offered much more frequently, whereby the maximum limit for fixed-term contracts without a material reason is 24 months in total. The employer may only issue such a fixed-term contract a maximum of three times in succession. In the event of an extension, this must be followed by an undermined employment relationship. As an exception, however, the line manager is permitted to do so if there is a factual reason for doing so.

As a rule, the duration of the probationary period stipulated in the employment contract is a maximum of six months. This regulation is intended to give both employee and employer the opportunity to orientate themselves: Does the new employee fit in with the company philosophy? Is a harmonious and productive interaction between the parties possible? In order to clarify these questions, the notice period during this phase is only two weeks. If the probationary period is successfully completed, the period for terminating the employment relationship is extended. While the regular employment contract leaves the inclusion of such a ‘familiarisation phase’ to the discretion of the employer, this is an indispensable part of a training contract, although a duration of 1 - 4 months must be assumed

The provisions of the employment contract regarding notice periods are extremely relevant. At the end of the above-mentioned probationary period, the German Civil Code (BGB) stipulates a minimum notice period of four weeks. A corresponding extension on the part of the employer is not excluded, but is dependent on the previous duration of the employment relationship. For example, if the employee has been with the company for five years, the notice period can be extended to eight weeks.

Illness and the resulting absence from work must be reported to the company on the first day. Anyone who is absent from work for more than three days must present a doctor's certificate of incapacity for work. However, deviating provisions are often made in the employment contract: for example, a certificate is often required on the first day of absence.

Please note: Anyone who is absent from work for more than six weeks a year due to various absences or a long-term illness may be dismissed. However, this must be reasonable, although special measures for the reintegration of the employee in question do exist.

The most interesting passage from the perspective of recent graduates is probably the one that defines the salary. As part of the employment contract, this includes both the basic salary and any additional benefits (e.g. Christmas or holiday pay, bonuses). It is also essential to define a time frame within which the monthly salary is paid. The statutory minimum wage of €8.84 per hour was introduced in Germany at the beginning of 2015. Contrary to initial assumptions, not only all people over the age of 18 are entitled to a minimum wage, but also trainees under certain conditions. However, this does not apply to trainees or the long-term unemployed: They are not entitled to such an entitlement within the first six months. The minimum wage was only raised to €9.00 on 1 August this year. Finally, it should be noted that under no circumstances should you turn up unprepared for the salary negotiations that precede the signing of the employment contract.

For many, the issue of holiday is almost as important as the question of salary. Every employee is entitled to paid holiday: anyone who works five days a week is entitled to a total of at least 20 days off per year. However, when it comes to a six-day week, employees are not legally entitled to less than 24 days' holiday. To give the impression of an attractive employer, many companies often grant their employees more days off than the statutory minimum.