By drafting a contract, a clear basis for a legal relationship can be established. This can reduce the risk of future legal disputes or at least provide a good starting position.
Drafting of various contracts and compensation plans:
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Employment contracts: The different clauses have to be oriented according to the individual needs. You will find an exemplary overview in the following section. |
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Service contracts for members of the management board / managing directors: Quite often topics similar to the ones in employment contracts have to be regulated. However, particularities result from the fact that the member of the management board / managing director is a legal representative. The relevant laws provide also for respective special provisions (Corporation Law, Law on Limited Liability Companies). Upon drafting the agreement, the following among other things should be considered: Limitation of the manager’s authority (this concerns the internal relationship with the company), post-contractual competition ban (when required and depending on the individual interests). |
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| Contracts for freelancers / consultants |
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| Contracts of apprenticeship |
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Termination agreements / Settlement agreements: Main topics are among other things: Type and time of termination, severance pay, claims for remuneration during the remaining term, right of premature termination, release from service duties (provision on setting off other earnings), non-disclosure, post-contractual competition ban, return of documents and objects, settlement clause etc. |
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| Variable compensation plans / Bonus plans / Stock Option Plans |
Drafting of individual clauses depending on the different types of contracts:
In practice, innovatively structured contractual clauses for the different fields are requested or demanded in addition to the required agreements.
| Working time | |
Inventions, intellectual property | |
Tele work place |
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Inability to work, continued payment of salary |
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Company car | |
Overtime and excess work |
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Job description, possibly assignment of different tasks |
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Non-disclosure | |
Vacation |
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| Cut-off periods | |
Additional jobs on the side | |
Remuneration (fixed, variable, special payments) |
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| Possibilities of termination | |
Use of Internet / e-mail | |
Prohibition on pledge and assignment |
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| Data protection | |
Probation period | |
Costs of further training, obligation of repayment |
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Term of the contractual relationship |
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Part-time work | |
Prohibition on competition, liquidated damages clause |
Standard forms
The drafting of standard forms, which shall be used for a group of employees, is of particular interest. Clauses in form employment contracts have been checked in accordance with the law, which applies to general terms and conditions (sections 305 et seq. German Civil Code), since the Law of Obligations Reform has entered into force (2002).
It is to be checked whether clauses comply with these statutory provisions; the clauses must not be structured in a way that they contravene these provisions.
Please find further information also under the category Preventive legal advice for companies: Employment contract – use of sample contracts / standard employment contracts.
