German Employment Contract: What to Check Before You Sign

So you got the job offer. Congratulations -- that's the hard part, right? Well, almost. Because now there's an Arbeitsvertrag sitting in your inbox, probably 8-12 pages of German legal text, and you're supposed to sign it by Friday.

I've talked to so many people who signed their German employment contract without really understanding what was in it. The excitement of the new job takes over. The HR person says "it's all standard." And three years later, they discover their non-compete clause means they can't take a job at a competitor for a year, or their notice period is three months and they need to start somewhere else in six weeks.

Don't be that person. Here's what to actually look for.

The non-negotiable basics

German law (Nachweisgesetz) requires certain terms to be in writing. If any of these are missing or vague, that's a conversation to have before you sign:

• Job title and description -- what you're actually hired to do. Watch out for "and other tasks as assigned" -- it's common, but know it's there.
• Start date -- when you officially begin.
• Work location -- matters a lot more now with remote work becoming standard.
• Salary (Bruttogehalt) -- the gross monthly amount, before taxes and social contributions eat into it.
• Working hours -- 40 per week is standard, but some industries and contracts go with 38 or 35.
• Holiday (Urlaubsanspruch) -- the legal minimum is 20 days for a five-day week. Most employers offer 28-30. If you're only getting the minimum, that's worth noting.

Probation: six months of vulnerability

Almost every German contract includes a Probezeit, usually six months. During probation, either side can terminate with just two weeks' notice. No lengthy process, no extensive justification. After probation ends, standard dismissal protection (Kundigungsschutz) kicks in -- assuming the company has more than 10 employees.

Six months is standard. If someone's trying to set a longer probation, ask why.

Notice periods get longer the longer you stay

This is one of the things that catches people off guard. German law sets minimum notice periods that grow with tenure:

• During probation: 2 weeks
• After probation: 4 weeks to the 15th or end of the month
• After 2 years: 1 month to the end of the month
• After 5 years: 2 months
• After 8 years: 3 months

Your contract might set longer periods than these minimums, and that applies to both sides. So if the contract says three months' notice from day one, make sure you're comfortable with that -- especially if you're in a fast-moving industry where opportunities don't wait.

Fixed-term vs. indefinite -- the distinction that matters most

Unbefristet (indefinite): No end date. Employment continues until someone terminates it. This is what you want.

Befristet (fixed-term): The contract expires on a specific date, no termination needed. Employers can chain up to three fixed-term contracts over a maximum of two years with the same employee (Sachgrundlose Befristung).

If you're offered a fixed-term contract, the question to ask is simple: what happens when it ends? Is there a plan to convert to indefinite? Get that answer before you sign, not after.

The clauses that bite later

Non-compete (Wettbewerbsverbot). If the contract restricts where you can work after leaving, the employer must compensate you -- at least 50% of your last salary for the restricted period. A non-compete without compensation is likely unenforceable, but "likely" isn't "definitely." Clarify before signing.

Overtime (Uberstundenregelung). "Overtime is included in salary" is a clause that shows up constantly. German courts have pushed back on blanket overtime clauses, especially for lower-paid roles, but the clause still creates ambiguity. If you expect significant overtime, understand what you're agreeing to.

Side employment (Nebentatigkeit). Many contracts require written approval for any side work. Generally enforceable, though the employer can't unreasonably refuse. If you freelance on the side, or plan to, this matters.

IP assignment. If you write code, create content, or invent things, the contract probably assigns all IP to the employer. Standard, but worth knowing.

Relocation (Versetzungsklausel). Some contracts let the employer reassign you to a different location. Understand how broadly this is written.

The brutto-netto reality check

Your contract shows Bruttogehalt -- gross salary. Your take-home (Netto) will be significantly less after income tax (Lohnsteuer), solidarity surcharge, health insurance, pension, unemployment insurance, and long-term care insurance come out.

Rough guide: a single person in tax class 1 takes home about 60-65% of gross. Don't mentally spend your Brutto. Run your numbers through a Brutto-Netto calculator before you decide whether the salary works for your life.

Twenty minutes that save you years of headaches

Here's what I'd do: before your signing meeting, upload the Arbeitsvertrag to Docgate. In a few minutes you'll have the key terms pulled out -- salary, probation, notice period, duration, and any red flags like non-compete scope or unusual overtime clauses. It's not legal advice. But it's the clarity that lets you walk into that meeting knowing what questions to ask, instead of nodding along and hoping for the best.

The terms you agree to on day one -- probation, notice period, non-compete, overtime rules -- will shape your working life for years. Taking a little time to understand them is one of the smartest things you can do before starting any new job in Germany.