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The employment contract in Germany

Der Arbeitsvertrag in Deutschland

The employment contract sets out pay, working hours, leave, the probation period and dismissal. The employer must give you the key terms in writing.

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Overview

German law protects employees strongly, but that protection depends on you knowing your rights and understanding what you sign. This guide is for a new employee receiving a first contract, full-time or part-time.

Here you will find what a contract must contain, what the probation period is, how much leave you get, what happens in illness and dismissal, and what gross and net pay mean. Read the whole contract before you sign, and do not hesitate to ask for time or a copy so that you can go through it with someone you trust.

1

What a contract must contain

The law obliges the employer to tell you the key terms in writing: the names of the parties, the start date and the duration if it is fixed, the place of work, a description of the tasks, the pay and how it is paid, working hours, the number of leave days, the notice period for dismissal and any collective agreement that applies. A contract does not have to be written to be valid, but the right to a written statement stands, so ask for it if you do not receive it. Remember that an oral agreement is hard to prove, so make sure everything agreed is written down.

2

Pay, tax and deductions

The contract states pay as gross (Brutto), while what reaches your account is net (Netto) after tax and social contributions: pension, unemployment insurance, health insurance and care insurance.

  • The tax class (Steuerklasse), from one to six, determines how much is deducted each month and changes with your family situation.
  • There is a statutory minimum wage per hour that rises regularly, about fourteen euros in 2026, so check the current figure.
  • Every month you receive a payslip (Gehaltsabrechnung) that lists the deductions.
3

Working time, leave and illness

A working day may normally not exceed eight hours, and it can be raised to ten if it is compensated within a few months.

  • The statutory minimum annual leave is twenty days for someone working five days a week, and most contracts give twenty-five to thirty.
  • If you fall ill you must inform your employer immediately and submit a medical certificate as agreed, and your pay continues for up to six weeks.
  • Public holidays differ between the states and are not counted as leave.
4

The probation period and fixed-term contracts

Many contracts start with a probation period (Probezeit) of at most six months, during which the contract can be ended with a short notice of two weeks.

  • After that the default notice period is four weeks to the fifteenth or the end of a month, and it grows with years of service.
  • A contract may be fixed-term (befristet), with strict rules: it may not be renewed indefinitely without a reason, and it ends when the term ends without any dismissal.
  • Protection against dismissal applies after six months in larger companies, so a dismissal needs a valid reason.
5

Collective agreements and advice

Many sectors have collective agreements (Tarifverträge) that set better pay and benefits than the legal minimum, and a company may have a works council (Betriebsrat) representing the employees.

  • A trade union gives legal advice to its members, and free services such as Faire Integration help migrant workers.
  • If the contract is in German and you do not understand it, get a translator before you sign.
  • Never hand your original passport to an employer and never sign blank papers, because that is against the law and a worrying sign.

Step by step

  1. 1

    Ask for the contract before the first working day and read all of it in a quiet moment.

  2. 2

    Check gross pay, working hours, leave days, the notice period and the probation period.

  3. 3

    Ask about any unclear clause and get the answer in writing or ask for the contract to be amended.

  4. 4

    Get help from a union, an advice centre or a translator if you need it.

  5. 5

    Sign two copies and keep yours, and give the employer your tax ID, social security number and bank account.

  6. 6

    After the first salary compare the payslip with the contract and check the deductions.

  7. 7

    Keep all payslips and sick notes in one file.

Documents checklist

  • Passport and a residence permit that allows work.
  • The tax identification number (Steuer-ID).
  • The social security number or proof that you will receive one.
  • The health insurance certificate.
  • Your bank account details (IBAN).
  • Your qualification certificates and their recognition if required.

Key vocabulary

  • derArbeitsvertrag
    employment contract
  • derArbeitgeber
    employer
  • derArbeitnehmer
    employee
  • dasGehalt
    salary
  • Brutto
    gross
  • Netto
    net
  • dieProbezeit
    probation period
  • dieKündigung
    notice, termination
  • derUrlaub
    leave, holiday
  • dieKrankmeldung
    sick notification
  • dieGehaltsabrechnung
    payslip
  • derBetriebsrat
    works council
  • Überstunden
    overtime

Useful phrases

  • Kann ich den Vertrag zu Hause in Ruhe lesen?Can I read the contract at home in peace?
  • Wie viele Urlaubstage habe ich?How many days of leave do I have?
  • Wie lange ist die Probezeit?How long is the probation period?
  • Sind Überstunden bezahlt?Is overtime paid?
  • Ich möchte mich krankmelden.I would like to report sick.
  • Was ist der Bruttolohn und was ist der Nettolohn?What is the gross wage and what is the net wage?
  • Bekomme ich eine Kopie des Vertrags?Do I get a copy of the contract?
  • Gilt hier ein Tarifvertrag?Does a collective agreement apply here?

Talking about the contract

  • Personalerin

    Willkommen im Team. Hier ist Ihr Arbeitsvertrag.Welcome to the team. Here is your employment contract.

  • Sie

    Vielen Dank. Kann ich ihn bis morgen in Ruhe lesen?Thank you very much. May I read it in peace until tomorrow?

  • Personalerin

    Natürlich. Haben Sie schon Fragen?Of course. Do you have any questions already?

  • Sie

    Ja. Wie viele Urlaubstage habe ich, und wie lange dauert die Probezeit?Yes. How many leave days do I have and how long does the probation period last?

  • Personalerin

    Sie haben dreißig Urlaubstage, und die Probezeit dauert sechs Monate.You have thirty days of leave, and the probation period lasts six months.

  • Sie

    Und wie hoch ist die Kündigungsfrist danach?And how long is the notice period after that?

  • Personalerin

    Vier Wochen zum Monatsende. Das steht auch im Vertrag.Four weeks to the end of the month. It is also in the contract.

Common mistakes

  • Signing under pressure without reading the contract and later discovering clauses such as unpaid overtime.
  • Confusing gross and net pay when comparing job offers.
  • Not telling the employer about your illness on the first day, which can count as unexcused absence.
  • Agreeing to work on trial without a contract, so that you have no insurance and no guaranteed pay.

Cultural tips

  • Calculate your net pay with an online tool before accepting an offer, which helps you compare correctly.
  • Ask about extra benefits such as a transport allowance and an occupational pension, since they are part of the offer.
  • If your contract ends, register as unemployed with the employment agency as soon as possible.

Official links

Check yourself

Question 1 of 5

What does Brutto mean?