Employment contracts in Germany: 10 things to check before you sign

Employers in Germany must give you the essential terms of your employment in writing. Whatever you sign is binding – even if you didn't understand every word. So it's completely normal to take the contract home, read it calmly and ask about anything unclear. These ten points cause the most trouble.

1. Start date and type of contract

Is the contract permanent (unbefristet) or fixed-term (befristet)? A fixed-term contract has to state the end date or the reason. Without an objective reason, a contract can be fixed-term for two years at most in total, with up to three extensions within that period. The fixed term must be agreed in writing and signed before you start work.

2. Probation period (Probezeit)

Probation can last up to six months. During it, either side can end the contract with two weeks' notice. Check whether there is a probation period and how long it is.

3. Duties and place of work

Your duties and place of work should be described clearly. If there's a transfer clause (Versetzungsklausel) – "we may also employ you at other sites" – ask which locations that covers.

4. Working hours and overtime

• Your weekly hours should be stated clearly, e.g. "40 Stunden pro Woche".
• By law you normally work at most eight hours a day, or up to ten if you average no more than eight hours per working day over a reference period.
• A blanket clause such as "overtime is covered by your salary" (Überstunden sind mit dem Gehalt abgegolten) is invalid in many cases. The contract should say how many hours of overtime your salary covers.

5. Pay, extras and pay day

• Pay is stated gross (brutto). Your net pay depends on your tax class and deductions – see German payslip explained.
• Your hourly pay can't be below the minimum wage: €13.90 an hour in 2026.
• Does the contract mention a Christmas bonus (Weihnachtsgeld), holiday pay (Urlaubsgeld), extra pay for nights, Sundays and public holidays, and the pay day?

6. Holidays (Urlaub)

With a five-day week, the legal minimum is 20 working days of paid holiday a year. Many employers give 25 to 30. Check the number in your contract.

7. Notice periods (Kündigungsfristen)

After probation, the statutory notice period is four weeks to the 15th or the end of a calendar month. For the employer, it gets longer the longer you have worked there. Your own notice period can't be longer than the employer's. How to resign properly is explained in resigning from a job in Germany.

8. Cut-off periods (Ausschlussfristen)

Some contracts say that claims lapse if you don't make them in writing within a certain time. Such a period must be at least three months. Know this clause: claim unpaid overtime or missing pay in time and in writing.

9. Repayment, non-compete and penalty clauses

• Repayment clause (Rückzahlungsklausel): if the company pays for training, it may want part of it back if you leave early – but only with a reasonable commitment period and an amount that decreases over time.
• Post-contractual non-compete (nachvertragliches Wettbewerbsverbot): if the contract bars you from working for competitors after you leave, you must be paid compensation for it (at least half of your last pay). Without it, the ban doesn't bind you.
• Contractual penalty (Vertragsstrafe): is there a penalty if you don't start or quit without notice? How much?

10. Collective agreements and side jobs

• If the contract says "Es gilt der Tarifvertrag …", pay, holidays and extras follow that collective agreement (Tarifvertrag) – often in your favour.
• Side jobs (Nebentätigkeit): many contracts require you to tell your employer, but a blanket ban on any side job isn't always valid.

Where to get free help

• Faire Integration: free advice on employment and social law for refugees and non-EU nationals, in many languages.
• Faire Mobilität: advice for workers from other EU countries, especially Central and Eastern Europe.
• Trade unions: legal support for their members.