Employment Contract chapter 3 de

National law – DE– Legal system – module 3

Work contract (Arbeitsvertrag)

A contract of employment is essential for any job in Germany. It contains precise provisions of the employment relationship.  It should be carefully read and asked if something unclear or does not conform to the oral agreements reached. Finally, it must be signed to make it legally binding. It must insist on a written contract, which is, however, usual in Germany. If the person has not handed a contract of employment, this should give reason for suspicion – so an enquire at the trade association or employment agency is necessary.

The contract of employment regulates the rights and obligations for employer and employees. Main provisions are the definition of working tasks and remuneration, also the duration of the probationary period, working hours and workplace,  as well as break-time and holiday regulations.

The employment contract is often derived from the requirements of a current collective agreement, which the industry association has concluded with the respective union.

A contract of employment is a special type of contract for the rendering of services and is subject to §§ 611 et seq. of the Civil Code (Bürgerliches Gesetzbuch). Arrangements entered into in favor of employees in collective agreements and company agreements as well as industrial safety regulations must be observed when filling in the general framework of employment contracts.

Working hours

The collective agreement usually prescribes a working week of between 37 and 40 hours. Germans, however, actually work an average of almost 41 hours a week. There are often flexible working time schemes (flexitime arrangements) that allow you within limits to decide on your working hours yourself. In some occupations, bonuses are paid for night work and work on holidays, in the health and security sectors and shift work in companies, for example (Sesta 2016).

Wages and salaries

A standard minimum wage applies in Germany of EUR 8.50 per hour. Every employee is entitled to receive this pay at the least. There are, however, currently exceptions in a few industries. Many have their own higher minimum wages, the building trade, for example. Otherwise, wages are negotiated in collective bargaining between trade unions and employers’ associations. If there is no collective wage agreement in the corresponding industry, the pay could be negotiated with the employer yourself.

Social security

An employee in Germany is a member of the national social security system. It comprises statutory health, nursing, accident, pension and unemployment insurance. As soon as the employer registered as an insured person, she/he will be assigned a so-called social insurance number. When recording the first employment, you get a social security card (SV ID) by the pension insurance funds. This includes surname, maiden name, first name and the insurance number. For certain occupations (such as construction), the SV ID must contain a photo and you must lead him constantly while working.

Employees have a legal right to the continued payment of 80% of wages or salaries in the event of sickness (Continued Payment Act – Entgeltfortzahlungsgesetz). This right extends to a period of six weeks.

The incapacity for work and its probable duration must be reported to the employer without delay. No later than the third day after the beginning of the incapacity for work, your doctor must examine you and issue a certificate of incapacity for work and its probable duration. The doctor sends the certificate to the health insurance company, whereas you have to send it to your employer.

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