Employment Contract

Quick Overview

Shed some light on things!

Types of Employment Contracts

Depending on the industry and your position within the company, you may receive either a collective agreement or an individual employment contract.

A collective agreement
is negotiated between the employers’ association and the trade union. It usually defines salary, vacation entitlement, working hours, and notice periods. The only aspect often open to negotiation is the experience level, depending on your years of professional experience.

An individual employment contract
is negotiated directly between you and the employer, covering salary, working hours, and notice periods.

Written employment contracts are the standard. Oral agreements are also legally valid but not recommended!

• Always insist on a written employment contract, issued in two copies (one for yourself).

Caution!
It’s a red flag if an employer pressures you to sign a contract immediately. Typically, you’ll receive the contract by mail and have about a week to review it carefully, ask questions, suggest changes, or, if you’re unsure, seek professional advice.

Fixed-Term Contracts

Normally, employment contracts are permanent unless stated otherwise. However, there are also fixed-term contracts (maximum of two years consecutively).

• Fixed-term contracts must always be justified and clearly indicated

Probation Period

If there is a probation period, it must be stated in the employment contract. It usually lasts 6 months. Taking vacation during the probation period is possible, but it will extend the probation period.

During probation, either party can terminate the contract with a shortened notice period (usually 2 weeks) and without giving a reason.

• Ideally, check with your employer halfway through the probation period whether the contract will be extended

Notice Period

Once the probation period is over, the written or collectively agreed notice period applies. Sometimes the notice period increases depending on how long you have already worked for the company. It usually ranges from one to seven months but can also be individually negotiated.

Working Hours

Working hours must be documented. Overtime must be agreed upon, meaning you can only work “overtime” if it is stipulated in the employment contract. Otherwise, any extra work counts as regular working hours. Overtime is usually compensated promptly, for example, with flex days.

The most important questions should be clarified in the employment contract before signing!

Job Description (What?)
Important: You are only required to perform the tasks listed in the employment contract!

Vague or missing details can be a warning sign, as you might be asked to do tasks you didn’t apply for.

• Clarify tasks and have them included in the contract

Work Location (Where?)
If the work location is not specified in the contract, the employer can require you to work at a different site.

• It’s better to include the work location in the contract but keep it flexible (e.g., specifying the relevant districts is a good approach)

Caution!
If key points like your tasks or work location are deliberately vague and the employer refuses to clarify them without a good reason, this is a warning sign. Consider looking at other companies.

Salary (How Much?)
Usually, the annual gross salary is negotiated.

Recommendations:

• Use an online net salary calculator for a better estimate

• Clarify what portion of the annual gross salary is base pay and what are bonuses or other supplements

Career Advancement
Higher-level positions may have different rules, for example:

• Overtime may not be paid separately

• Managers may require a different work insurance

Severance
Severance can be negotiated but is not mandatory.

You are only entitled to severance if you are terminated or mutually agree to end the contract.

• There is never severance for voluntary resignation!

Vacation

• Legally: 24 weekdays for a 6-day workweek

• 20 days for the usual 5-day workweek

• Most companies offer more vacation days than the legal minimum

Vacation Carryover

By law, vacation must be taken in the year it is accrued. Some companies allow unused vacation days from the previous year to be used until a certain date in the new year. After that, they expire!

Already approved vacation cannot be easily canceled, so plan carefully.

Sick Leave During Vacation

If you provide a medical certificate of incapacity, the vacation days are counted as sick leave – they are not deducted from your vacation and can be taken at another time.

Absence Due to Illness

In many companies, a medical certificate is required only from the 3rd day of illness. To be safe, it’s a good idea to visit a doctor on the first day.

The sick note is usually no longer needed physically, as it is transmitted online. If you’re unsure about the first sick day, just ask!

Delays, Traffic, or Other Tardiness

Any lost time due to being late must be made up.

Secondary Employment

Secondary employment must be disclosed, though it doesn’t necessarily need to be included in the employment contract.

Even if you start a secondary job during your current contract, your employer must be informed.

Confidentiality Clauses

It’s not uncommon for companies to protect themselves against industrial espionage or sharing knowledge with competitors. Therefore, your contract may include restrictions, such as a prohibition on working for a competitor in a similar role for a certain number of years after leaving the company.

If unsure: clarify with your current and new employer or consult a lawyer!