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Contract of Employment

The following Contract of Employment is concluded between

_______ (Employer)

and

_________________ (Employee):

Section 1 Start and location of the employment relationship, probationary period

(1) The employee takes up his duties for the employer on ______ in _______.

(2) The employment relationship is concluded for an unlimited term.The first six months are regarded as a probationary period. During this period the employment relationship can be terminated by either party with a period of notice of two weeks. (alternatively: at the end of the week/ month.). There is no termination before commencement of employment.

Section 2 Activity and area of responsibilities

(1) The employee is employed as a _________________ .

(2) The employer has the right to assign other or additional omparable ork to the employee in conformity with his previous experience.

(3) If the transfer is linked to a permanent change of location, the consent of the employee is required. (alternatively: The employer reserves the right to relocate the employee to another place of work within Germany.)

Section 3 Working hours

(1) Normal working hours are 40 hours a week. The beginning and the end of working hours are determined by the employer.

(2) The employee shall be obliged to put all working hours at the disposal of the employer.

Section 4 Renumeration

(1) The employee shall receive a monthly salary of ________ euros gross. Payment is due at the end of the month and payable to an account designated by the employee.

(2) Payment of the renumeration covers any overtime work. (alternatively: Each hour of overtime is paid _____(e.g. 25 %) above the usual rate.)

(3) The payment of bonuses, profit sharing, premiums and other payments is at the complete discretion of the employer and does not constitute a claim, even if the payment is made repeatedly without explicit reservation of the optional nature of the payment.

Section 5 Assignment and pledging of the renumeration

The assignment and pledging of remuneration claims is prohibited. In the event of distress or permitted assignment or pledging by the employer of remuneration claims the employer is entitled to request reimbursement of the costs from the employee.

Section 6 Sideline occupation

The employee will devote his entire working capacity to the company. Any sideline occupation for the purpose of earnings requires the prior written consent of the management.

Section 7 Holiday

(1) The employee is entitled to _____ (e.g. 25 ) working days.

(2) The holiday must be granted as far as possible as a block and is exclusively for the purpose of relaxation. The timing of the holliday shall be determined by the employer who will take into account the employee's wishes.

Section 8 Payment of salary in the event of inabilty to work

(1) The employee must notify the employer immediately, i.e. at the latest at the beginning of the work, if he is unable to work, stating the reasons and the expected duration. If the inability to work due to illness continues for more than three days the employee shall submitt a medical certificate by no later than the following day. Sentences 1 and 2 shall apply accordingly in the event that the inability to work continues for a period of time which is longer than originally certified.

(2) In the event of illness, the employee is entitled to continued payment of the salary for the duration of the statutory provisions of the Law on Continued Remuneration in Case of Sickness.

(3) If the employee recovers claims for damages against a third party as a result of an injury which leads to incapacity to work, they are assigned to the employer amounting to the contributions granted by the employer in conformity with the contractual provisions for the duration of the incapacity to work.

(4) The employeee must provide the employer immediately with the details required for the assertion of the claim for damages.

Section 9 Termination and release

(1) The employment relationship can be terminated by both parties during the term of the contract according to the statutory period of notice. A statutory extension of the employer's notice period equally has to be observed by the employee.

(2) A notice of termination which is received late is considered to be as a notice of termination for the next permitted time. As a precaution, termination without prior notice is also regarded as termination within the specified time for the next permitted time.

(3) For both parties the notice of termination must be in writing.

(4) The employer has the right at any time to release the employee whilst continuing to pay him the remunration according to sec. 4 para. 1.

Section 10 Duty of confidentiality

During the term of the contract of employment and after the termination the employee is obliged to treat secrecy about all confidential matters and processes, especially business and manufacturing secrets he has gained knowledge of in the framework of his work.

Section 11 Work results, inventions

The regulations of the Law on Employee Inventions and the guidelines issued about this for the remuneration of employee inventions in the private sector apply to the management of employee inventions.

Section 12 Personnel questionnaire

The details in the personnel questionnaire are an integral component of this contract. The employer must be notified of changes immediately. The employer can rescind the contract in the event of false details or failure to disclose material facts in the personnel questionnaire.

Section 13 Subsidiary agreements and amendments to the contract

There are no verbal subsidiary agreements. Amendments and additional regulations to this contract shall be made in writing in order to be valid.

Section 14 Preclusive periods

(1) All claims constituted under or in connection with the employment contract lapse if they are not asserted in writing within three months after the due date with respect to the other party to the contract.

(2) If the other party rejects the claim or does not make a declaration within two weeks after the claim is asserted, the claim lapses if it is not asserted by legal process within three months after the rejection or expiry of period. This does not apply to the employee´s claims for payment which become due during a lawsuit for unfair dismissal and depend on the sucess of such a lawsuit. For these claims the preclusive period commences three months after the non-appealable termination of the law-suit for unfair dismissal.

Section 15 Partial invalidity

Should individual provisions of this contract be invalid, this does not affect the validity of the remaining provisions of the contract.

Section 16 Handing over of contract

The parties to the contract confirm they have received a written copy of this contract.


[Place, date, signatures]

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