The employment contract is signed for an unlimited period. A fixed-term contract is possible, provided the term is agreed upon in writing before the employment commences. A fixed-term contract ends automatically without written notice at the end of its term. The agreement must refer to:
Termination Process: The employer may terminate the contract of employment by either giving either an ordinary notice of termination observing the relevant notice period, or by an extraordinary termination with immediate effect.
Notice Period: The statutory notice periods in Germany are ruled by article 622 German Civil Code. The basic notice period is 4 weeks effective as of either the 15th or at the end of the calendar month.
Severance Pay: In practice, employer and employee shall agree on a severance payment to avoid a possible dispute regarding the question on whether or not the employer has just reasons for a termination, and it is common to start negotiations on the basis of a calculation of 50 % of a monthly salary per year of service with the company.
Legal entitlement to time of work given to both father and mother. During this period, parents may also apply to claim the parental allowance (Elterngeld) to alleviate loss of earnings.
Parental leave requirements:
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