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Changes to employment contracts in Germany from August. Every employee needs to know about them

Work in Germany. Changes to employment contracts in Germany from August 2022. Employment contracts will contain more details.

To better protect people working in Germany and provide more transparency and clarity, a new law will soon require employers to provide more information in employment contracts than was previously require.

Although the new regulations only applies to new contracts concluded after August 1,2022, people with existing contracts will also benefit.

Employment contracts in Germany general information

Employers and international companies in Germany have various obligations when it comes to providing workers with information and documents about their jobs.

These are regulated in the so-called Proof Act (Nachweisgesetz or NachwG). From 1 August 2022, the NachwG is amended and extended to implement a new EU directive, which means that employment contracts will look a little different in the future.

Until now, employment contracts had to include the following points:

  • The name and address of the contracting parties;
  • Date of commencement of employment;
  • Duration of employment (in the case of a fixed-term contract);
  • Place of work;
  • Job title or description;
  • Salary
  • Working time
  • Rest leave
  • Notice period
  • References to applicable collective agreements.

Changes to employment contracts in Germany from August 2022

In addition to the points above, employers must, starting  August 1, 2022  , provide the following information:

  • If agreed, the duration of the trial period;
  • The date and manner of termination of employment;
  • The amount of remuneration and its components: remuneration for overtime , allowances, bonuses and special allowances and other components of remuneration, each of which must be specified separately, the date of their payment and the type of payment;
  • Working hours, breaks and rest periods and, in the case of agreed shift work, a shift system;
  • Any training qualifications provided by the employer;
  • Place or places of work;
  • If collective agreements apply to the employment relationship, the employer must confirm this in writing;
  • If the employer provides a company pension, the name and address of the pension provider;
  • The procedure to be followed by the employer and employee upon termination of employment.

Current employees will also benefit

The change in the law does not apply to existing contracts, but only to new ones concluded after August 1, 2022. However, those employed before the entry into force of the act can ask the employer to provide written terms and conditions outlining the employment (the employer has a period from 7 days to 1 month).

You may already know much of the above information, especially if you’ve worked for the company for a long time, but it can be helpful to have it formally in writing. For example, in case of a  dispute with the employer.