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Permanent Employment Contract Template for Germany

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Key Requirements PROMPT example:

Permanent Employment Contract

"I need a Permanent Employment Contract under German law for a senior software developer position in our Munich office, starting March 1, 2025, including provisions for hybrid work arrangements and stock options."

Document background
The Permanent Employment Contract is a fundamental legal document used in Germany to establish an ongoing employment relationship between an employer and employee. It is required whenever a company hires an employee on a permanent basis in Germany, regardless of the organization's size or sector. The contract must comply with various German labor laws, including the Nachweisgesetz (Documentation Act), which mandates written documentation of essential employment terms. This document serves multiple purposes: it defines the employment relationship's key terms, ensures legal compliance, protects both parties' rights and obligations, and provides clear reference for workplace expectations. The contract includes mandatory elements required by German law while allowing flexibility to accommodate specific role requirements, industry standards, and company policies.
Suggested Sections

1. Parties: Identification of employer and employee with full legal names and addresses

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the contract

4. Position and Duties: Job title, role description, and primary responsibilities

5. Commencement and Duration: Start date and confirmation of permanent nature of contract

6. Probationary Period: Length of probationary period and applicable notice periods during this time

7. Place of Work: Primary workplace location and any mobility requirements

8. Working Hours: Regular working hours, break times, and overtime provisions

9. Remuneration: Base salary, payment schedule, and any guaranteed bonuses

10. Annual Leave: Vacation entitlement and rules for requesting/taking leave

11. Sick Leave and Continued Payment: Sick pay entitlements and notification requirements

12. Notice Periods: Notice periods for termination by either party

13. Confidentiality: Obligations regarding company confidential information

14. Data Protection: GDPR compliance and handling of personal data

15. Governing Law: Confirmation of German law application

Optional Sections

1. Variable Compensation: Details of bonus schemes, commission structures, or other variable pay elements - include for sales roles or management positions

2. Company Car: Terms of company car provision - include when offering company vehicle

3. Non-Competition: Post-contractual non-compete provisions - typically for senior roles or roles with access to sensitive information

4. Intellectual Property: IP rights assignment - important for creative or technical roles

5. Remote Work: Provisions for working from home or remote locations - include if offering flexible working arrangements

6. Training Obligations: Mandatory training requirements and cost reimbursement - include for roles requiring specific certifications

7. Stock Options/Employee Benefits: Details of equity participation or special benefits - include if offering company shares or special benefit packages

8. Travel Requirements: Business travel expectations and compensation - include for roles involving regular travel

9. Collective Agreements: Reference to applicable collective bargaining agreements - include if company is bound by such agreements

Suggested Schedules

1. Job Description: Detailed description of role, responsibilities, and reporting lines

2. Compensation Structure: Detailed breakdown of salary components and benefits

3. Company Policies: Key workplace policies including IT usage, expense claims, etc.

4. Code of Conduct: Company's code of conduct and ethical guidelines

5. Benefits Overview: Detailed description of all employee benefits and eligibility criteria

6. Data Privacy Notice: Detailed information about personal data processing as required by GDPR

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

























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Relevant Industries

Technology

Manufacturing

Financial Services

Healthcare

Retail

Professional Services

Education

Construction

Automotive

Energy

Telecommunications

Media and Entertainment

Logistics and Transportation

Real Estate

Hospitality

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Customer Service

Administration

Product Development

Quality Assurance

Business Development

Strategy

Corporate Communications

Relevant Roles

Chief Executive Officer

Managing Director

Department Head

Senior Manager

Project Manager

Software Developer

Sales Representative

Marketing Specialist

Financial Analyst

Human Resources Manager

Operations Manager

Research Scientist

Administrative Assistant

Customer Service Representative

Product Manager

Business Analyst

Legal Counsel

Account Manager

Technical Support Specialist

Design Engineer

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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