The Arbeitsvertrag you receive from a German employer is a legal contract in German — typically three to fifteen pages, written in formal contractual language, and binding from the moment you sign it. Most expats sign it with the help of a dictionary and a translation app, which is fine for most clauses — and insufficient for a few important ones.

This article covers the key sections and terms you will find in a German employment contract, with particular attention to the provisions that differ from what English-speaking professionals might expect.

The Basics

Arbeitsvertrag — employment contract. The document governing your employment relationship.

Arbeitgeber — employer.

Arbeitnehmer — employee.

Arbeitsverhältnis — employment relationship.

Unbefristeter Vertrag — an open-ended / permanent contract. No end date; continues until terminated by either party.

Befristeter Vertrag — a fixed-term contract. Must state the end date or the qualifying objective reason (sachlicher Grund) if longer than two years.

Probezeit — probationary period. During this period (typically six months), both parties can terminate with two weeks' notice. Check whether your contract shortens or extends this period.

Eintrittsdatum — start date.

Working Hours

Wöchentliche Arbeitszeit — weekly working hours. The German standard is 40 hours per week, though many collective agreements set 35–38 hours.

Arbeitszeitgesetz (ArbZG) — the German Working Hours Act, which limits daily working hours to 8 hours (extendable to 10 hours if balanced over 6 months). Your contract cannot override this law.

Gleitzeit — flexible working hours, where you have discretion over start and end times within a core working window.

Home Office / Mobiles Arbeiten — remote working provisions. Check whether your contract specifies the number of days allowed and any conditions.

Überstunden — overtime. Check: Is overtime compensated (in money or time off)? Is there a contractual obligation to work overtime? Is there a cap? This is a frequent source of misunderstanding.

Freizeitausgleich — time off in lieu, instead of overtime pay.

Salary and Benefits

Vergütung / Gehalt — remuneration / salary.

Bruttolohn / Bruttogehalt — gross salary (before tax and social security deductions).

Nettolohn / Nettogehalt — net salary (what lands in your account).

Gehaltsanpassung — a salary adjustment / review. Check whether the contract specifies a regular review cycle.

Jahressonderzahlung — a contractual bonus (e.g., Christmas bonus or 13th-month payment).

Variable Vergütung — variable pay / bonus tied to targets.

Dienstwagen — company car. If included, check whether personal use is permitted and how it affects your tax.

Betriebliche Altersvorsorge (bAV) — occupational pension scheme. A significant benefit if offered.

Vermögenswirksame Leistungen (VL) — employer contributions to a savings plan (a statutory system; employers often contribute €40/month).

Fahrtkostenzuschuss — a commuting allowance.

Annual Leave

Urlaubsanspruch — annual leave entitlement. The statutory minimum is 20 days (based on a 5-day week). Most German contracts offer 25–30 days. Check whether unused leave carries over into the next year and under what conditions.

Urlaubsgeld — a holiday bonus. Check whether it is a contractual right or a voluntary benefit.

Urlaub darf nicht übertragen werden — a clause stating that leave cannot be carried over. If this appears, understand when you must use your entitlement by.

Termination

Kündigungsfrist — notice period. One of the most important clauses. German statutory notice periods for employees scale with length of service, but the contract may specify longer periods. The notice period for the probationary period is typically two weeks.

Ordentliche Kündigung — ordinary termination (with the required notice period).

Außerordentliche Kündigung — extraordinary / immediate termination (without notice, for serious cause only).

Abfindung — a severance payment. Not legally required in Germany, but may be contractually agreed or negotiated.

Freistellung — gardening leave; being released from the obligation to work during the notice period while still being paid. Common in senior roles or those with access to sensitive information.

Wettbewerbsverbot — non-compete clause. Check its geographic and temporal scope carefully. In German law, a post-contractual non-compete must include compensation (Karenzentschädigung) of at least 50% of your last salary; without this, it may be unenforceable.

Intellectual Property and Confidentiality

Vertraulichkeit / Geheimhaltung — confidentiality.

Geheimhaltungspflicht — the obligation to maintain confidentiality.

Arbeitnehmererfindergesetz — the German Act on Employee Inventions, which governs who owns inventions created during employment. Broadly: inventions related to your work belong to the employer, with a right to compensation for the employee.

Key Reference Laws

Your Arbeitsvertrag operates within a statutory framework. The following laws take precedence over less-favourable contract terms:

Bürgerliches Gesetzbuch (BGB) — the German Civil Code, which governs employment contracts not covered by collective agreements.

Kündigungsschutzgesetz (KSchG) — the Dismissal Protection Act, protecting employees in companies with more than ten employees after six months of employment.

Allgemeines Gleichbehandlungsgesetz (AGG) — the General Equal Treatment Act, prohibiting discrimination on protected grounds.

Understanding your employment contract is the first act of professional self-protection in Germany. The vocabulary above turns an opaque document into something readable — and readable is what you need before you sign.

Your Arbeitsvertrag is in German. Vokabulo helps you build the vocabulary to read it properly before you commit. Available on iPhone and iPad.