Employment contract in Germany: Template, Key Clauses and Local Law (2026)

What a German employment contract has to get right An employment contract in Germany (Arbeitsvertrag) is governed by the Civil Code (Burgerliches Gesetzbuch, BGB), the Act on Proof of Essential Working Conditions (Nachweisgesetz, NachwG), the Dismissal Protection Act (Kundigungsschutzgesetz, KSchG) and, for most workplaces, a collective agreement (Tarifvertrag) or works council arrangement. German employment law is highly protective of employees once they pass the first six months, and much of it is mandatory. A generic foreign template will usually be wrong on probation, notice, dismissal protection and post-contract non-compete, so the local rules below matter more than the wording you begin with. This article is general guidance, not legal advice. A collective agreement or an individual situation can change the outcome, so have a German employment lawyer review a contract before you rely on it. ## What local law requires in 2026 - Written proof of terms (Nachweisgesetz). The employer must give the employee a written record of the essential terms of employment. Some terms must be provided on the first day of work and the rest within short statutory deadlines. A recent reform allows text form (for example a signed PDF by email) for the record in most sectors, but certain industries still require a traditional signed document, so check your sector.

• Probation (Probezeit). The maximum is six months under Section 622(3) BGB. During probation either side can end the contract on two weeks notice. A probation longer than six months is not valid as a probation.
• Notice (Kundigungsfrist). The basic statutory notice is four weeks to the 15th or the end of a calendar month (Section 622 BGB). Employer notice lengthens with the employee's service, rising in steps up to seven months after twenty years. A contract or collective agreement can set longer periods.
• Dismissal protection (KSchG). The Dismissal Protection Act applies once the employee has more than six months service and the employer has more than ten employees (counting part-timers proportionally). Where it applies, a dismissal needs social justification on grounds of conduct, capability or operational reasons, which is a high bar.
• Fixed-term contracts (TzBfG). A fixed term with an objective reason can be renewed as the reason lasts. A fixed term without an objective reason is capped at two years, within which it can be extended at most three times, and generally cannot be used where the person was employed by the same employer before.
• Post-contract non-compete. A non-compete after employment is only binding if the employer pays compensation (Karenzentschadigung) of at least half the employee's last earnings for each year of the restriction, which can run for a maximum of two years (Sections 74 and following of the Commercial Code, HGB).
• Minimum wage. The statutory minimum wage is 13.90 euro gross per hour in 2026 and rises to 14.60 euro from 1 January 2027. Working time is generally capped at eight hours a day, extendable to ten if the average stays at eight over six months. ## German employment contract template Copy the block below and fill the bracketed fields. ``` EMPLOYMENT CONTRACT (ARBEITSVERTRAG) This contract is made on [DATE] BETWEEN: [EMPLOYER NAME], [address] ("Employer") AND [EMPLOYEE NAME], [address] ("Employee") 1. ROLE AND START The Employee is engaged as [job title], starting on [DATE], at [location / remote]. Duties are set out in [description]. 2. TYPE AND TERM This is a [permanent / fixed-term to [END DATE], for the reason: [state objective reason, or note it is within the two-year no-reason limit]]. 3. PROBATION A probation period of [up to six] months applies, during which notice is two weeks. 4. WORKING HOURS The weekly working time is [N] hours. [Overtime treatment.] Daily hours follow the Working Time Act. 5. REMUNERATION Gross salary is [AMOUNT] per month, at or above the statutory minimum wage. [Bonus, 13th month, allowances if any.] 6. HOLIDAY The Employee has [N] days paid leave per year (at least the statutory minimum under the Federal Leave Act). 7. COLLECTIVE AGREEMENT / WORKS COUNCIL The [name] Tarifvertrag [applies / does not apply]; works agreements apply where relevant. 8. CONFIDENTIALITY The Employee keeps the Employer's business secrets confidential during and after employment. 9. POST-CONTRACT NON-COMPETE [If used:] For [up to two] years after the contract ends, the Employee will not [compete], and the Employer will pay compensation of at least 50% of the Employee's last earnings for that period. [Without this payment the clause does not bind.] 10. NOTICE The statutory notice periods under Section 622 BGB apply [or longer as stated], equal for both sides after probation. 11. GOVERNING LAW German law applies. The labour courts have jurisdiction. Signed: Employer ____________ Employee ____________ Name / date Name / date

- **Probation and notice (clauses 3 and 10).** Six months is the ceiling for probation, and it matters because dismissal protection usually begins only after that point. Statutory notice grows with service and applies equally to both sides once probation ends.
- **Post-contract non-compete (clause 9).** This is where foreign templates fail most often. In Germany a post-contract non-compete simply does not bind the employee unless the employer promises compensation of at least half of last earnings for the restricted period. No payment, no restraint.
- **Dismissal protection.** Once the KSchG applies, you cannot dismiss at will. The dismissal needs a recognised social ground, and a works council, if there is one, must be heard first. ## Red flags to avoid - A probation clause longer than six months, which is invalid as a probation.
- A no-reason fixed term over two years or with too many extensions, which becomes permanent automatically.
- A post-contract non-compete with no compensation, which is not binding and can still expose the employer.
- Treating dismissal as at-will after six months, when the KSchG requires social justification at employers with more than ten staff.
- Missing the Nachweisgesetz record of essential terms, which can trigger fines and disputes.
- Paying below the statutory minimum wage or ignoring the Working Time Act limits. ## Where a contract workspace helps A template gives you a sound German contract. The harder work is everything that follows: confirming a fixed term has a valid reason and has not tipped into permanent, checking that any post-contract non-compete carries the mandatory compensation, tracking notice periods that lengthen with service, and keeping each Nachweisgesetz record and collective-agreement reference in one place. Drafting a German employment contract, checking a non-compete for the compensation requirement, and watching fixed-term limits can sit in one AI workspace tuned to how your company hires. [Adira](https://adiralaw.com) is built around that idea: it drafts from your template, models the contract as linked clauses so it can flag a probation clause over six months or a non-compete with no compensation, lets you edit in plain language, and keeps renewal and notice dates on one timeline. Adira is India-first today, and deeper Germany-specific coverage is on its roadmap rather than a settled claim, so treat it as a drafting and review aid and keep a German adviser for the local-law call. The template above is enough to put a fair contract in place on its own. Last verified October 2026.