An attractive salary is only part of a German job offer. Before signing your Arbeitsvertrag, examine the conditions that could affect your working hours, ability to change jobs and financial obligations if you leave.

A software engineer in Karachi receives an offer from a German company. The salary is €60,000 a year, and the employer will contribute to relocation expenses. The position is in Munich.

Then the employment contract arrives.

It runs to 14 pages. The engineer recognises the salary, starting date and job title. But several clauses are harder to understand: Probezeit, Überstunden, Ausschlussfristen and Wettbewerbsverbot.

He worries that asking too many questions might jeopardise the offer.

This is a hypothetical example, but it captures a problem many international recruits face. The effort of securing a German job can make the contract seem like a formality.

It is not.

A German employment contract determines more than how much you earn. It can affect where you work, when you may resign and whether you must repay money if you leave. For someone moving countries, those details deserve attention before the signature.

First, understand what German law requires

Germany’s Nachweisgesetz, or Evidence Act, requires employers to document essential employment conditions. These include the start date, workplace, duties, remuneration, working hours, leave entitlement and termination arrangements.

Since January 2025, the required record can generally be provided electronically in text form if statutory safeguards are met. Workers may request a signed written record. Certain sectors remain subject to stricter rules.

There is an important distinction: the rules for documenting employment conditions are not the same as the rules governing every employment agreement.

For example, the legal limitation of a fixed-term employment contract must satisfy a separate written-form requirement. Termination notices and termination agreements also require written form. Ordinary electronic communication is insufficient for those acts.

Germany’s official Make it in Germany employment-contract guide explains the basic information employees should expect.

The following ten clauses deserve particular scrutiny. This guide focuses on the questions a foreign worker can raise before accepting an offer; whether a particular clause is enforceable depends on its wording and the applicable law.

German employment contract checklist: what to check first

Contract term	Check before signing
Befristung / Probezeit	End date, ability to resign early and probation notice
Gehalt / Überstunden	Guaranteed gross pay, bonus conditions and overtime compensation
Arbeitsort / Urlaub	Transfer rights, home-office terms and leave days for your working week
Kündigungsfrist / Ausschlussfrist	Resignation notice and deadlines for unpaid claims
Wettbewerbsverbot / Rückzahlung	Post-employment restrictions and potential repayment liabilities

1. Befristung: Is your employment permanent or fixed-term?

An unbefristeter Arbeitsvertrag is an employment contract without a predetermined end date. A befristeter Arbeitsvertrag is limited to a specified period or purpose.

The distinction matters because a fixed-term contract can end without a separate dismissal notice when its agreed term expires. A contract linked to completion of a particular purpose follows additional notification rules.

Under Section 15 of the Part-Time and Fixed-Term Employment Act, ordinary termination during a fixed term is generally possible only if the employment contract or an applicable collective agreement permits it.

Fixed-term contracts must also comply with Section 14, including the applicable requirements for justification and written form.

A worker might assume that resignation is possible on four weeks’ notice. That assumption could be wrong for a fixed-term contract.

Ask HR: Is this a permanent position? If it is fixed-term, can I resign before the agreed end date?

2. Probezeit: What happens during probation?

Probezeit means probationary period. An agreed probationary period often lasts six months. Under Section 622(3) of the German Civil Code, termination during an agreed probationary period of up to six months generally requires two weeks’ notice, subject to applicable exceptions.

But probation and general dismissal protection are not identical. The Protection Against Dismissal Act generally requires more than six months of employment and an employer meeting the applicable workforce threshold.

A worker may therefore have fewer protections early in employment, even where the contract uses different language about probation.

For fixed-term contracts, Section 15(3) of the Part-Time and Fixed-Term Employment Act requires probation to be proportionate to the expected duration and nature of the job.

A long probation period in a short contract deserves closer examination.

Ask HR: How long is probation, and what notice period applies during and after it?

3. Gehalt: Which parts of your salary are guaranteed?

German employment contracts generally quote gross salary, or Bruttogehalt. That is not the amount you receive after taxes and social-insurance deductions.

A €60,000 annual gross salary does not mean €5,000 will reach your bank account each month.

The contract should make clear whether remuneration includes bonuses, allowances or special payments. A guaranteed thirteenth salary is different from a discretionary annual bonus.

The same applies to relocation allowances, commissions and performance payments. Their conditions matter.

The Evidence Act requires documentation of the composition and amount of remuneration, including relevant supplements and special payments.

Our earlier guide, Your German Salary Explained: Brutto, Netto and Every Deduction in 2026, explains how gross pay differs from take-home income.

Ask HR: What is my guaranteed annual gross salary, and which additional payments are conditional?

4. Überstunden: How much overtime is included?

Überstunden means overtime. Some employment contracts state that a specified amount of overtime is covered by the agreed salary. Others contain broad language suggesting that additional work is already compensated.

Such clauses require careful reading. Their enforceability depends on their wording, transparency and the employment circumstances.

German working-time law also applies independently of contractual wording. Under Section 3 of the Working Time Act, the ordinary limit is eight working hours per working day. It may be extended to ten if the statutory averaging conditions are met.

Section 5 generally requires eleven consecutive hours of rest between working periods, although the law provides certain exceptions.

A salary clause does not simply eliminate those protections. Nor should employees assume that every additional hour automatically produces an overtime payment. The contractual terms, authorisation of overtime and applicable legal rules matter.

Ask HR: How many overtime hours are included in my salary? How are additional hours approved, recorded and compensated?

5. Arbeitsort: Can your employer relocate you?

Arbeitsort means workplace. A contract may specify a particular city or office. It may also give the employer flexibility to assign work elsewhere.

The employer’s authority is not unlimited. Instructions must remain within the contract, applicable law and the requirement to exercise reasonable discretion.

Nevertheless, a broad mobility clause can create uncertainty. Imagine accepting a Munich position because your spouse has found work there and your child will attend a local school. A later transfer to another city could disrupt those plans.

Remote-work arrangements need similar attention. A job advertisement stating that home office is possible does not necessarily establish a permanent contractual right to work from home.

Ask HR: Is Munich my contractual workplace? Under what circumstances could I be transferred? Is hybrid working guaranteed or discretionary?

6. Urlaub: How many paid holidays do you actually receive?

Germany’s Federal Leave Act provides at least 24 working days of annual leave based on a six-day working week. For a standard five-day working week, that corresponds to 20 days.

Many employers offer more. A contract promising 30 days may therefore be attractive, but employees should still examine the details.

Some contracts distinguish between statutory minimum leave and additional contractual leave. Different provisions may govern the additional entitlement where legally permissible.

The rules for leave during the first year, after prolonged illness or when employment ends can also require attention.

Ask HR: How many paid leave days do I receive on my working schedule, and what happens to unused leave when I leave?

7. Kündigungsfrist: How quickly can you change jobs?

Kündigungsfrist means notice period. Under Section 622 BGB, the ordinary statutory employee notice period is generally four weeks to the fifteenth or end of a calendar month.

Longer periods can apply through contractual terms or collective agreements. The law also provides longer statutory employer notice periods as employment length increases.

An individual contract cannot impose a longer notice period on the employee than on the employer.

This matters when another company makes an offer. A three-month notice period may be manageable. Six months can complicate a move, particularly when the new employer wants someone to start quickly.

Foreign workers should also consider how a job change interacts with any conditions attached to their residence title.

Remember that termination by notice requires written form under Section 623 BGB. An ordinary email resignation is not legally sufficient.

Ask HR: If I receive another offer after probation, what is the earliest date I could lawfully leave?

8. Ausschlussfrist: Could you lose an unpaid salary claim?

An Ausschlussfrist is a deadline for asserting certain employment-related claims. A valid clause may require an employee to claim outstanding payments within a shorter period than the ordinary statutory limitation period.

This can matter when overtime or salary remains unpaid. Such clauses are subject to legal restrictions and scrutiny of their wording.

For example, Section 3 of the Minimum Wage Act prevents contractual terms from improperly restricting statutory minimum-wage claims.

An exclusion clause is not automatically enforceable simply because it appears in the contract. But an employee should not assume that a disputed payment can safely be ignored for several years.

Ask HR: Does the contract contain an Ausschlussfrist? Which claims does it cover, and how must I assert them?

9. Wettbewerbsverbot: Can you join a competitor?

Wettbewerbsverbot means non-compete restriction. Employees ordinarily owe duties of loyalty during employment. A restriction that continues after employment ends is a separate matter.

For employment relationships governed by the relevant statutory framework, Section 74 of the Commercial Code requires compensation for a binding post-employment non-compete.

The minimum compensation is generally half the employee’s most recent contractual remuneration, calculated under the applicable rules.

Section 74a limits the permissible duration to two years and restricts provisions that unreasonably interfere with the employee’s professional future.

These requirements do not mean that every clause mentioning competitors is enforceable.

For a worker in a specialised industry, the practical stakes can be substantial. If most alternative employers operate in the same market, a post-employment restriction may affect the next career move.

Ask HR: Does the non-compete apply after employment ends? If so, for how long, in which market and with what compensation?

10. Rückzahlungsklausel: Must you repay relocation or training costs?

Some employers pay for professional training, language courses or international relocation. An employment contract may contain a Rückzahlungsklausel, requiring repayment under certain circumstances.

These clauses are not automatically valid. A particularly relevant example comes from Germany’s Federal Labour Court.

In its judgment of 21 October 2025, case 9 AZR 266/24, the court considered a training-cost repayment agreement. The ruling illustrates why employers must distinguish between different reasons for an employee’s departure when drafting such clauses.

A worker who resigns because an employer has seriously breached the contract is not necessarily in the same position as someone who simply decides to leave for a better offer.

The Federal Labour Court’s published judgment concerned training costs. It should not be treated as a blanket ruling that every relocation repayment clause is invalid. Relocation arrangements may raise different legal questions.

Suppose a company pays €8,000 toward an international move. The employee should know whether repayment is required after resignation, how long the obligation lasts and whether the amount reduces over time.

Ask HR: Under exactly which circumstances would I have to repay these expenses, and how is the amount calculated?

What if you are signing before your work visa is approved?

Germany’s official Make it in Germany guidance for employers confirms that eligible applicants may sign a work contract before visa approval. The contract can state that employment takes effect only once the required visa has been granted. Ask HR what happens to the start date, relocation expenses and any advance payments if visa processing is delayed or permission is refused.

What if your contract is only in German?

A foreign worker should not sign a document whose important terms remain unclear. Ask the employer for time to review the contract and obtain a reliable translation or independent legal advice.

An English explanation from a recruiter may help, but it does not automatically replace the binding contractual language.

Also ask whether a collective agreement, known as a Tarifvertrag, or a workplace agreement applies. Those instruments may affect pay, working time, leave or notice periods.

A worker should understand not only the contract’s words but also the rules incorporated by reference.

Why immigration status makes these clauses more important

Employment law and immigration law are different systems. For many foreign workers, however, the employment relationship is also connected to permission to live and work in Germany.

An EU Blue Card or another employment-based residence title may depend on qualifying employment.

A contractual transfer into a different position does not automatically establish that the new position satisfies immigration requirements. Similarly, a two-year employment contract does not guarantee a two-year residence permit.

The applicable rules depend on the type of residence title and the employee’s circumstances. If employment ends unexpectedly, notification duties and immigration procedures may apply.

Our guide, Lost Your Job in Germany? What Happens to Your Residence Permit?, explains the separate residence implications.

If an employer later offers a mutual termination agreement, read Should You Sign an Aufhebungsvertrag in Germany? before accepting it.

Recruitment agencies: another document to check

If a placement agency arranged the job, examine its separate terms as well. Germany’s official guidance on placement agencies warns that repayment commitments, recruitment charges and employer-provided housing can create additional risks. Ask for the employer’s identity, pay, hours and leave terms in a language you understand, and check any agency agreement independently of the employment contract.

Five questions to send HR before signing

If the contract is difficult to understand, an employee can send these questions:

1. Which salary payments are guaranteed, and which are discretionary?

2. How are overtime hours approved and compensated?

3. Can the employer change my workplace or require relocation?

4. What notice period applies if I resign after probation?

5. Do any repayment, non-compete or claim-deadline provisions continue to affect me after employment ends?

If the answers involve important promises, ask for them to be reflected clearly in the contractual documents.

The real cost of an overlooked clause

Return to the engineer considering the Munich offer. The salary is important. So is the chance to build a career in Germany.

But the decision should not rest on salary alone. A long notice period may delay the next opportunity. An unclear overtime clause may lead to disagreements. A repayment provision may make resignation expensive.

Not every restrictive clause is unlawful, and not every difficult clause is unreasonable. The point is to understand the obligations before accepting them.

For someone moving to Germany with a family, a contract is more than an administrative document. It helps determine how much freedom the employee will have if circumstances change.

Read it before signing. Ask questions while there is still room to negotiate.

Legal information reviewed on 20 October 2026. This article provides general information, not individual legal advice. The enforceability of particular terms depends on their wording, applicable agreements and circumstances.