Employment contracts in Germany

In Germany, written employment contracts are not strictly mandatory, but they are highly recommended. According to German labour law, an employer is required to provide the main terms of employment in writing within one month of the employee starting work. This is typically done through a written employment contract.This requirement applies to both indefinite and fixed-term contracts.

The employment contract should include essential details such as the employee’s duties, working hours, compensation and benefits, termination notice period, and procedures for resolving disputes.

Additionally, it is not mandatory for the employment contract to be written in a language that the employee understands. However, the employee should have sufficient time to have the contract translated before signing it. It is also advisable for employees to request a copy of the signed contract for their records.

Employment policies in Germany

The recent amendments to the Evidence Act (Nachweisgesetz) (NachwG) enable companies in Germany to use digital methods to handle employment contracts. The federal government agreed to let companies use digital “text form” to create employment contracts, not just the traditional written or paper contracts. This means employers can start using digital contracts when hiring workers in Germany, a shift to make the process more accessible for employers and employees.

In Germany, when it comes to contract policies, there are no mandatory requirements in place. However, the presence of a works council can significantly impact the landscape. In companies with a works council, work agreements often take precedence over written policies. Conversely, in the absence of a work council, companies commonly utilise policies, but these must align with standard contract term provisions. This ensures that policies cannot be altered unilaterally in a way that harms the workforce, providing a layer of protection for employees.

Probationary periods in Germany

The probationary period, known as “Probezeit,” can last for up to six months of employment in Germany. However, the duration of the probationary period may vary depending on the specific circumstances. In some cases, the probationary period may be longer or shorter, and there are rare instances where employers may choose to forego probation altogether.

Typically, the notice period during probation is two weeks. However, during the probationary period, termination of employment can occur with shorter notice periods compared to regular employment. The specific notice period may vary depending on the terms stated in the employment contract. Employers in Germany can also terminate employment without notice or justification if the employee is deemed unsuitable for the position.

Third-party approval in Germany

There is no obligation to submit employment contracts or policies for review or approval by any external entity. Yet, if a works council is established within the organisation, it holds the authority to voice objections to certain aspects of employment, thereby protecting employee interests within the given framework.

It is important to understand these employment policies to ensure compliance with labour laws and regulations and avoid potential legal issues when expanding your operations in Germany.