Form & Content of Employment Contracts

According to the „Nachweisgesetz“ [Act on notification of conditions governing an employment relationship] the employer has to provide the employee with a written summary on the terms of the contract.

This must be done at the latest one month after the agreed date of employment. The employment can be considered legally valid without the written summary.

 

Form: Employment Contract verbal or in written form?

In general, written contracts are the most common. However, verbal agreements are also legally effective. A time limitation of the employment contract, on the other hand, is legally valid only in written form.

Content: What is included in an employment contract?

  • Name and adress of the employee;
  • Name and adress of the employer;
  • Beginning of the employment;
  • Duration of the employment contract (limited or unlimited);
  • Place of work (if the employee is not only working in a specific place of work, there must be a note in the contract that the employee is employed in different places);
  • Description of the work that has to be performed by the employee (short characterization);
  • The composition and the amount of the employee’s remuneration, including the surcharges, bonuses, premiums and special payments as well as of other components of the employee’s remuneration and their due date;
  • Agreed working time;
  • Entitlement to leave (days off/holidays);
  • Period of notice in case of termination of the employment relationship;
  • Reference to the collective agreement, employment and service agreements applicable to the employment relationship;
  • Optional supplements for minor occupations;
  • Optional supplements for works involving staying abroad.