Your Rights Under a German Employment Contract (Arbeitsvertrag)

Sep 25

3 min read

You have a job offer, and the contract in front of you is written in German legalese. The key point: German law gives employees minimum rights that apply even if the contract says otherwise. If you know those rights, you can sign with confidence and recognize clauses that will not hold. This guide covers what every Arbeitsvertrag (employment contract) has to respect.

The law sets minimum requirements

Many of your protections come from statute, not from the contract. A clause that gives you less than the law guarantees is invalid, and the statutory rule applies instead. If your contract offers fewer holiday days than the legal minimum, or a shorter notice period than the law requires, you are not bound by the worse term. The contract fills in the details. The law sets the minimum.

The core rights

Minimum wage. At least the statutory minimum of €13.90 per hour from 1 January 2026, rising to €14.60 in 2027, whatever the contract says.
Paid holiday. At least 20 days a year on a five-day week. Many employers offer more.
Sick pay. Up to six weeks of full pay from your employer for the same illness (Entgeltfortzahlung). After that, your health insurer pays sickness benefit.
Working time. Generally eight hours a day, extendable to ten as long as you average eight over six months, with mandatory breaks and rest periods.
Notice and dismissal protection. Statutory minimum notice periods apply. Once you have worked for more than six months at a company with more than ten employees, the Protection Against Dismissal Act (Kündigungsschutzgesetz) protects you as well.

What the contract defines

Within these limits, the Arbeitsvertrag defines your role, salary, working hours, place of work, probation period, any holiday above the minimum, and bonuses. Read the probation period, notice terms, overtime rules and any non-compete clause with particular care.

Clauses to read twice

Probation (Probezeit). Up to six months. During probation, either side can end the contract with two weeks' notice.
Overtime. A clause saying all overtime is "covered by your salary" is valid only if it is clear and limited. Many are not.
Non-compete after you leave. Only binding if your employer pays you compensation for the restricted period, at least half of your most recent pay.
Fixed-term contracts. Fixed terms are subject to specific rules on duration and renewal.

Your contract and your residence permit

If your residence permit is based on your job, such as an EU Blue Card or a skilled-worker permit, the contract matters even more. The Ausländerbehörde (immigration office) checks your salary, role and working hours against the requirements of your permit, and changes to those terms can affect it. Read the contract with both questions in mind: is it fair, and does it fit your permit?

Common mistakes

Treating the contract as infallible. Statutory rights override worse terms.
Accepting pay or holiday below the legal minimum as if it were binding.
Signing without checking probation and notice terms.
Agreeing to a broad non-compete with no compensation.
Not keeping a signed copy of your contract.

When to get a lawyer

Get advice before you sign a senior or unusual contract, if a clause looks unfair (overtime, non-compete, contractual penalties), or if your employer is not honoring your statutory rights. If you hold a work-based residence permit, have the contract checked against your permit's requirements as well.

Protect your residence status when you sign

Fiona Macdonald advises foreign professionals on residence permits, including whether a new contract meets the requirements of an EU Blue Card or skilled-worker permit. If you are about to sign or to change jobs, you can book a consultation to check how the contract affects your status. For disputes about the employment relationship itself, an employment lawyer (Fachanwalt für Arbeitsrecht) is the right contact.

Book a consultation with Fiona Macdonald →